Do these stretch goals actually work?

Just like setting a mission, vision, and yearly initiatives for your company, stretch goals can help drive your business forward.

But, of course, these initiatives must be done right to achieve a positive outcome.

As Professor Datar at Harvard University states, “When done well, stretch goals create a lot of energy and momentum in an organisation”.

On the flip side, “Poorly set goals can be destructive to employees’ morale and productivity, and to the organisation’s performance overall,” shares Amy Gallo in a Harvard Business Review article.

So how do you implement effective stretch goals?

Stretch goals can be relatively straightforward to design and are exciting because they can take your team to the next level.

To give you an overview of the process, here’s my 7-steps to setting All Star stretch goals:

1. Identify desired outcomes. What defined goals or measured outcomes do you want to see from this employee?

• Notice I said you. Pick what you determine as most important development areas based on your experience, expertise and what you know your business needs. Often your employees’ idea of the ideal stretch goal can be quite different to yours.

2. Set a timeframe. When would you like to see these results? In six months, one year, or two years?

3. Consider the gaps. Based on the employee’s current state of work and performance, and the outcomes you identified in #1, how big is the gap? What is missing?

4. Establish the stretch goals. Using the outcomes and timeframe you selected, and considering the size of the gap for the particular employee, determine goals that stretch the employee but are also achievable.

5. Communicate the plan. Once you’ve established the stretch goals, you’ll want to have a collaborative conversation with the employee. While it’s important to guide the employee, we must remember to gain their buy-in and feedback. In the end, employees should feel confident and empowered to achieve their new goals. Don’t forget to communicate the WHY!

6. Implement and evaluate. After you’ve talked with the employee and documented the goals in writing, you’ll want to have follow-up conversations. Eventually, you’ll measure the employee’s successes or struggles in achieving the stretch goals.

7. Make adjustments. Just like with any HR or business initiative, you’ll want to look at your process and make adjustments accordingly. What worked and didn’t work? How can it be more effective next time?

Setting stretch goals and developing All Stars takes time and practice.

If you’d like further assistance or want more information about developing high performing employees and teams, take a look at this month’s download, the All Star’s Performance Review Guide.

Thanks for reading and have a fantastic week!

Any questions?

If you have questions on this topic or any others, feel free to reach me by email or set up a free one-on-one consultation session, or drop me a comment below.

Thanks for sharing!