When and how should stretch goals be used?

Stretch goals should be created in areas in which individuals have the potential to exceed their current performance. A properly-created stretch goal should push the employee out of his or her comfort zone by asking the employee to work on underdeveloped skills or competencies or to build new knowledge in his or her area of expertise. A common by-product of a stretch goal is that the employee builds the skills and knowledge needed to achieve future career plans.

Stretch goals will frequently contain the following elements:

• Success and failure are both possible.

• Take charge leadership is required.

• Involves working with new people or coordinating the efforts of a large number of people.

• Creates additional pressure.

• Requires influencing people, activities, and factors over which the employee has no direct authority or control.

• Will be closely watched by people within the organization whose opinions count.

• Contains a major strategic component.