Ep. 113 When are seemingly impossible goals good for performance?
The conversation stems from a review of a noteworthy paper from the Academy of Management Review Journal titled "The Paradox of Stretch Goals: Organizations in Pursuit of the Seemingly Impossible," which offers invaluable insights into the world of goal setting in senior management.
Discussion Points:
- The concept of seemingly impossible goals in organizations
- Controversial nature and impact of ‘zero harm’
- The role of stretch goals in promoting innovation
- Potential negative effects of setting stretch goals
- Psychological effects of ambitious organizational targets
- Paradoxical outcomes of setting seemingly impossible goals
- The role of emotions in achieving stretch goals
- Factors that contribute to the success of stretch goals
- Real-world examples of successful stretch goal implementation
- Cautions against blind imitation of successful stretch goal strategies
- The concept of zero harm in safety initiatives
- Need for long-term research on zero harm effectiveness
- The answer to our episode’s question – they're good when the organization is currently doing well enough, but stretch goals are not good when the organization is struggling and trying to turn a corner using that stretch goal.
Quotes:
"The basic idea [of ‘zero harm’] is that companies should adopt a visionary goal of having zero accidents. Often that comes along with commitment statements by managers, sometimes by workers as well that everyone is committed to the vision of having no accidents." - Drew
“I think organizations are in this loop, where I know maybe I can't achieve zero, but I can't say anything other than zero because that wouldn't be moral or responsible, because I'd be saying it's okay to hurt people. So I set zero because it's the best thing for me to do.” - David
“The “stretch goal” was credited with the introduction of hybrid cars. You've got to have a whole new way of managing your car to get that seemingly impossible goal of doubling your efficiency.”- Drew
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