What are 'stretch targets' designed to encourage in an organization?

Stretch targets are designed to encourage more innovative approaches beyond current capabilities within an organization. These targets are ambitious goals set higher than the standard objectives that aim to motivate employees to think creatively and push the boundaries of what is achievable. By challenging individuals and teams to reach for targets that seem difficult or even unattainable, organizations foster a culture of innovation and continuous improvement.

Setting stretch targets can lead to breakthroughs in performance and can inspire teams to collaborate in new ways, explore new technologies, and develop novel solutions to problems. This methodology recognizes that while not every target will be met, the process of striving for more significant achievements can yield substantial advancements and improve overall capabilities within the organization.

In contrast, a focus on improving existing practices pertains more to incremental improvements rather than the breakthrough innovations encouraged by stretch targets. Likewise, easily attainable objectives do not push employees to exceed their current limitations, while a reduction in overall performance expectations would have the opposite effect, potentially stifling motivation and ambition.