What are stretch goals? What are the advantages and disadvantages of using stretch goals?

Question

What will be an ideal response?

Answer 1

According to Sim Sitkin and his colleagues, a stretch goal is defined as “an organizational goal with an objective probability of attainment that may be unknown but is seemingly impossible given current capabilities (i.e., current practices, skills, knowledge)” (Sitkin, See, Miller, Lawless, & Carton, 2011, p. 547). Wow: “Seemingly impossible”—that sure sounds difficult! However, the last part of the definition provides some hope: The stretch goals are only impossible using current practices, skills, and knowledge. This suggests that the stretch goals may be achievable by getting rid of outdated practices or by researching and developing new procedures. Thus, stretch goals give employees freedom to be innovative. As Rousseau (1997) stated, stretch goals enable “creativity and assumption-breaking thinking” (p. 528). As Burnham poetically stated, stretch goals may stir our blood and encourage us to dream big (White, 1986).
When properly managed, stretch goals may encourage flexible thinking as well as positive affect and enthusiasm. Employees may be inspired by thoughts of making it to the moon or of achieving goals, like greater fuel economy, that would be of great benefit to mankind. However, when improperly used, stretch goals may create feelings of fear and anxiety over the ability to achieve the goal and as a result, may actually reduce creativity and the ability to process new information (Sitkin et al., 2011).
Sim and his colleagues (Sitkin et al., 2011) argued that organizations should pursue stretch goals when they have the slack resources that allow them to afford experimentation and the occasional failed venture. Paradoxically, however, organizations with slack resources are usually those who are making a tidy profit using their existing procedures and thus may see no reason to change those procedures; consequently, they may be less likely to invest in grand plans and unproven, risky ventures. In contrast, organizations with few slack resources may unwisely gamble on risky stretch goals they might not be able to afford.