The Paradox of Stretch Goals: Organizations in Pursuit of the Seemingly Impossible

Sitkin, Sim B.; See, Kelly E.; Miller, C. Chet; Lawless, Michael; Carton, Andrew

The Paradox of Stretch Goals: Organizations in Pursuit of the Seemingly Impossible

Academy of Management Review, Vol. 36, No. 3, pp. 544–566, July 2011

23 Pages Posted: 28 Oct 2010 Last revised: 3 Aug 2011

See all articles by Sim B. Sitkin

Sim B. Sitkin

Duke University-Fuqua School of Business

Kelly E. See

University of Colorado at Denver - Business School; New York University - Department of Management and Organizations

C. Chet Miller

Wake Forest University - Babcock Graduate School of Management

Andrew Carton

Duke University - Fuqua School of Business

Date Written: October 26, 2010

Abstract

We investigate the organizational pursuit of seemingly impossible goals - commonly known as stretch goals. Building from our analysis of the mechanisms through which stretch goals could influence organizational learning and performance, we offer a contingency framework evaluating which organizations are positioned to benefit from such extreme goals, and which are most likely to pursue them. We conclude that stretch goals are, paradoxically, most seductive for organizations that can least afford the risks associated with them.

Keywords: organizational learning, performance, organizational goals, stretch goals, organizational cognition, exploratory search, change, innovation, risk taking

JEL Classification: A10, D2, D23, D83, L2, L20, L21, M1, M10, M14

Suggested Citation: Suggested Citation

Sitkin, Sim B. and See, Kelly E. and Miller, C. Chet and Lawless, Michael and Carton, Andrew, The Paradox of Stretch Goals: Organizations in Pursuit of the Seemingly Impossible (October 26, 2010). Academy of Management Review, Vol. 36, No. 3, pp. 544–566, July 2011. Available at SSRN: https://ssrn.com/abstract=1698304