Ambitious goals help you think outside the box and can cause a global breakthrough. Understanding the benefits of stretch goals helps improve team members' motivation and contributes to high performance across different departments.
Stretch goals: What they mean for your business?
The idea of stretch goals became famous in the 1980s when Jack Welch, the CEO of General Electric, encouraged teams to think big and aim for goals that seemed almost impossible. This approach inspired businesses worldwide to step out of their comfort zones and embrace ambitious targets.
The definition of an stretch goal is as follows: a stretch goal (extended or ambitious) is an inspirational goal. One that sets the stage for stepping out of your comfort zone and looking at the bigger picture. It is a really big goal that usually involves risks. But at the same time, the possible payoff justifies all the potential risks.
It’s important to note that while the term “extended goal” may sound similar, it is less commonly used in business contexts. “Stretch goal” specifically refers to goals that push boundaries and challenge teams to achieve more than what seems possible, whereas “extended goal” might simply suggest a goal that takes more time or is broader in scope.
One of the key benefits of stretch goals is their ability to boost team performance by encouraging innovation and ambition.
Stretch goal meaning: Everything you need to know
Stretch goals can be like dreams, so much so that sometimes achieving them seems impossible. But once a plan is in place to achieve a bold dream, it becomes a stretch goal.
You dream big, give yourself permission to think without limits, and then think through the steps that will lead you to your goal.
By definition, stretch goals require more effort than ordinary goals, and they are also riskier. But you can't have revolutionary breakthroughs without risk. Risk tolerance is a prerequisite for success in business.
Two key differences between stretch goals and conventional goals:
1. Marginal Complexity.
Stretch goals are expectations that are not supported by the company's current capabilities. They seem very difficult to achieve, unlike conventional goals.
2. Exciting novelty.
The most important component of stretch goals is the novelty factor. To achieve them, you often need to come up with ways that are as unexpected and ambitious as the goals themselves.
An example of such a path is the use of Voiset, an AI-based planner that can organize every day of your life into an optimal pattern to achieve a stretch goal.
There are different types of goals, such as SMART goals and stretch goals. Each has its purpose, but stretch goals are especially effective for driving high performance and pushing team members beyond their limits.
Stretch goals examples: Real-Life application in business
These examples demonstrate how the right use of stretch goals can lead to real business value and high performance among team members.
1. “Reduce the cost of space travel by a factor of 10.”
This goal was set by SpaceX, the aerospace company of Ilon Musk. With the resources and facilities available at the time, the goal was unattainable.
However, this stretch goal pushed the company towards a revolutionary innovation: reusable rockets were invented and developed.
2. “Save 60 to 80 million dollars over 4 years without losing in employee satisfaction or diminishing positive patient outcomes”
This is DaVita's ambitious goal, which it set in 2011 and realized by 2015.
3. “10x” is Google's stretch goal for ... everything.
The company's philosophy is that it is ambitious goals that attract the best employees and create an exciting work environment.
Stretch goals are the bricks from which outstanding future achievements are built. Thanks to this philosophy, today we have Google Maps, Gmail and Street View.
4. “Reduce the amount of waste sent to landfills by 30%” is an example of a stretch goal from Starbucks.
This is one of the many ambitious goals the company sets and fulfills.
Another example of its realized stretch goals: to reduce customer waiting time at checkouts by 20% and increase customer satisfaction by 10%.
Of course, for all these positive examples of stretch goals, there are also negative ones. For example, Ilon Musk set about 20 stretch goals at Tesla, of which the vast majority are still not achieved.
However, it is ambitious goals that change this world and can be the driving force that will take a company out of the ordinary.
How to set effective stretch goals: Practical guide
Stretch goals can be powerful motivators, but setting them effectively requires careful planning. Here's a step-by-step guide to ensure your stretch goals are ambitious yet achievable:
- Clearly define the ambition.
Your stretch goal should be clear and inspiring. Vague goals won't energize your team. For example, instead of saying, "increase revenue," specify "increase revenue by 50% this year." - Ensure alignment with company vision.
Stretch goals should align with your company's long-term strategy. Ask yourself, "How does this goal contribute to our overarching vision?" - Evaluate resources and capabilities.
Assess whether your team has the necessary resources, skills, and support. Setting a stretch goal without providing proper resources can lead to frustration rather than motivation. - Break down into milestones.
Divide the stretch goal into smaller, manageable milestones. Regularly tracking these milestones helps maintain motivation and measure progress. - Provide continuous feedback.
Regular feedback helps your team stay motivated and on track. Talking openly helps fix problems early and keeps the work moving forward. To stay focused on a stretch goal, you need more than a good plan—you need to keep your attention strong. Even great teams can get distracted. If you want to stay focused, read our tips on how to focus on your goals and avoid distractions. - Adjust when necessary.
Be prepared to adjust the approach if circumstances change. Flexibility ensures that your team remains motivated even if unexpected challenges arise.
By following these steps, you can leverage the power of stretch goals effectively, ensuring sustained motivation and exceptional results.
The role of tools such as Voiset in achieving your goals
Reaching a stretch goal is something that takes time, so paying proper attention to organizational points becomes critical.
Stay organized by using management tools
To achieve long-term goals, you need to make sure that all the small steps leading to them are done on time.
Stay ahead of time
To make stretch goals stop being dreams, use Voiset solution. It's an AI-powered planner. It provides unique tools to help companies and freelancers realize their most ambitious goals.
Not only will you be able to dictate tasks and track their completion, but you will also be able to schedule events in a smart calendar using AI assistance.
With Voiset, the organization of each day will be perfect - the kind you need to achieve ambitious goals.
Practical steps for successfully setting and meeting stretch goals in business
- Drop the “buts.”
A stretch goal is a goal with no “buts.” Let go of the inner critic, the skeptic, and form that goal, the mere thought of achieving it gives you strength. - Register or download the app, it will take literally 2 minutes.
- Define the sub-steps.
Don't try to think like everyone else or like you used to. Get creative. - Create AI sub-steps in Voiset using all features like smart note, voice input or external calendar.
- Use AI to build the best schedule automatically.
AI will create a schedule to reach a stretch goal. Get reminders, track your progress, and go forward without stopping!
With Voiset, you can allocate tasks efficiently, track your progress with automatic reminders and increase your efficiency.
Using the same tools as everyone else around you, it's impossible to go beyond conventional boundaries. But stretch goals are about thinking outside the box.
AI will give you the opportunity to look at your life, career, and business from a different angle. Try Voiset if you are ready to realize your ambitious goals!
Achieving ambitious goals is important, but maintaining balance and managing stress is key to long-term success. Learn how to master stress management and balance in everyday life in our next article
