Effective Leadership: Why Stretch Goals May Harm Your Team
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Chapter 1: Understanding the Impact of Stretch Goals
David Foster Wallace once remarked, "A true leader can inspire us to accomplish things that we believe are beneficial and wish to achieve, yet often struggle to do alone." This encapsulates the essence of leadership: empowering others to reach their potential. Unfortunately, many managers inadvertently undermine this mission.
Over time, a misconception has emerged in management circles—that setting overly ambitious targets will drive people to excel. On the surface, this seems logical; even if employees don't fully meet these lofty goals, they're likely to achieve more than if they aimed lower. However, this overlooks the fundamental nature of human motivation.
I have personally fallen into this trap, assigning stretch goals with the hope of igniting significant progress. Instead, I witnessed a disheartening decline in morale, leading team members to either give up or question my judgment. In both scenarios, productivity suffered.
Rule 1: People Avoid Games They Can't Win
When faced with insurmountable challenges, individuals often become paralyzed. Therefore, the first step in addressing any issue is to deconstruct it into manageable tasks. This approach fosters confidence and provides direction, even if the ultimate outcome isn't immediately visible.
Unattainable goals create a scenario where the finish line seems perpetually out of reach. While many are willing to stretch their limits, they need to see their efforts contributing to something worthwhile. Just as one wouldn't invest in a failing stock, employees are unlikely to commit their energy to a project perceived as doomed.
Rule 2: Without a Clear Path, People Won't Start
Progress and acknowledgment drive motivation. This is why individuals often jot down completed tasks on their to-do lists. The feeling of advancement, even from small victories, is crucial. While it’s acceptable to encourage people to step outside their comfort zones, stripping them of the chance to mark their progress can diminish their motivation.
Stretch goals often come with implicit threats. They imply, "I understand this is beyond your current capabilities, but I expect you to achieve it, and there will be consequences if you don't." In an environment where such tactics prevail, it's no wonder that employee turnover rates are soaring.
Rule 3: Unrealistic Goals Breed Discontent
In some cases, individuals may achieve their targets at the cost of ethical standards. For instance, to meet unrealistic revenue expectations, executives at Enron engaged in risky practices that triggered a financial crisis. Similarly, employees at Wells Fargo, pressured by aggressive sales targets, resorted to creating fraudulent accounts, resulting in significant penalties.
When organizations impose unreasonable sales objectives, they inadvertently encourage dishonest practices. In my own experience, prioritizing delivery metrics above all else led to a compromise in quality as employees rushed to meet a 100% on-time goal. The initial celebration was short-lived when defective products began to return.
Rule 4: Success at Any Cost Leads to Unwanted Sacrifices
It's essential to understand that goals alone do not yield results; they are merely expectations. What truly matters are the consequences associated with them.
In many organizations, after setting goals, there's little follow-up, making it easy for employees to disregard them. If individuals are punished for falling short, their primary motivation becomes avoiding negative consequences. With stretch goals, the realization sets in that there's little chance to evade punishment, resulting in minimal motivation to try. Alternatively, they may compromise their ethics to meet targets—neither outcome is desirable.
Conversely, when employees receive recognition for reaching their goals, they are encouraged to continue striving for success. Repeatedly, I've emphasized that motivation stems from progress and appreciation. By providing more opportunities for acknowledgment, we can inspire individuals to perform at their best.
Rule 5: Goals Should Motivate Behavior Through Progress
The same principle applies to habit formation; small victories are crucial. You can't establish a consistent exercise routine by aiming to run a marathon immediately. Instead, begin with manageable steps, demonstrate progress, and gradually integrate these behaviors into daily life. Over time, these small actions compound, leading to significant transformations.
Individuals inherently desire to excel. As leaders, our responsibility is to facilitate their journey, one step at a time. We must create opportunities for meaningful progress and reinforce positive behaviors through small wins. If we demand drastic improvements in performance, we risk discouraging our teams and falling short of our own expectations.
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