What is a team stretch goal? – Microsoft 365

What is a stretch goal, and how do they work?

Stretch goals are objectives that are purposely difficult to reach. They are created to set the bar higher for your team or department in an attempt to increase efforts and workflow. Not all stretch goals are meant to be attainable, but they can help boost morale within your team and improve productivity if they are done right.

Here’s a quick example of what a stretch goal looks like:

• Regular goal: Hit your quota and make $30,000 in sales by the end of the quarter.
• Stretch goal: Go above your quota and make $80,000 in sales by the end of the quarter.

Why set up a stretch goal?

It might seem scary to set a goal that’s larger than necessary, but an efficient stretch goal can be a win-win for your organization. If a stretch goal is met, it means that your team has exceeded requirements and performs at a higher scale. But if a stretch goal isn’t met, it doesn’t negatively impact your team’s performance. Teams that can achieve their stretch targets or even come close to them work harder to accomplish more, which results in the development of good habits, an increase in motivation, and more opportunities to innovate work practices.

Are there any downsides to stretch goals?

Stretch goals may play a role in boosting productivity and motivation for your team, but they can do the opposite in some cases. Goals that are too large can overwhelm people as well, which can end up causing frustration among your peers. Applying too much pressure to these lofty goals can also impact your team’s dynamic and increase the risk of burnout.

The added pressure and limited time can have an impact on the quality of work, too. More work in less time can also mean less time to spend on creating high-quality work, resulting in errors. In more extreme cases, some people may even try unethical methods like cheating to get their work in on time.

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How to set up a stretch goal

Doing a stretch goal properly will help ensure better success for your team. Here are some steps to take when setting up a stretch goal:

Create SMART goals

Before creating stretch targets, make sure to have a list of SMART goals (Specific, Measurable, Attainable, Relevant, and Time-based) to go off of. This will help you understand what your team is initially capable of.

See what a stretch goal can accomplish

Assess your team’s current situation and ask yourself why a stretch goal can be beneficial. Are you hoping to motivate your teammates? How much additional work can your team handle? Is there anything that can hinder your team’s ability to attempt a stretch goal? Map out a potential stretch goal with these questions in mind.

Offer plenty of support to your teammates

Working on a stretch goal requires lots of effort and dedication. Be sure to support your team as best as you can during this process to ensure that they have everything they need to succeed. Make sure to provide ample resources and include buffer room for everyone.

Utilize digital tools

If you’re not sure how to start, try using project management software. These tools can keep you organized and help you stay on track while planning out and executing a stretch goal. Once you’ve finished creating your plan, you can share it with your team members so they can review the details, track ongoing progress, and collaborate efficiently.

Achieving a stretch goal is a difficult feat, but staying organized throughout the process will allow you and your team to succeed. Find more organizational tips to help you reach your goals.