The success of ‘stretch goals’ to power performance in existing businesses can blind managers to the reality that similar techniques cannot be used to drive the creation of new businesses. Stretch goals work in existing businesses because managers get stuck in ruts and the stretch can unlock their thinking. In the search for new businesses managers have no ruts to unlock. Stretch just distracts them from thinking rationally. Companies are better advised to set development goals after the opportunities have been screened, not before.
Author: Andrew Campbell
Source: European Business Forum (EBF)
Subjects: Entrepreneurship, Management