Ryan Davies, Hugues Lavandier, Ken Schwartz

In our experience, a healthier stretch [target] requires companies to calibrate targets against cross-functional trade-offs. It demands that executives build trust with employees, rewarding success rather than always moving the goal up, but also that they confirm that employees succeed fairly. And it requires that there be no stigma attached to bringing out bad news, so that employees are encouraged to be transparent about their progress.

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