Hard, Not Hopeless: The Sweet Spot Of Stretch Goals

Ready to set goals that feel ambitious, doable, and worth the effort? Greg and I dig into the craft of stretch goals and show how to design targets that motivate teams, protect resources, and deliver results you can take to the board with confidence. From facilities operations to HR recruiting, we share battle-tested stories that turn theory into practice.

We start with a simple truth: data is a shield when it reflects real work. You’ll hear how tying pay to documented hours fixed compliance, revealed workload, and stopped misguided cuts. We unpack how national benchmarks (like square footage per mechanic) create shared language for leaders and staff, so everyone sees what “good” looks like and what “great” proves. Then we shift to energy management with a tiered goal—2 percent baseline, 3 percent strong, 4 percent stretch—where seasons matter, creativity thrives, and recognition moves from lone heroes to department-wide wins. The twist that won over a skeptical CFO? Funding rewards from verified savings.

Hiring gets its own spotlight with time-to-fill metrics and a smarter alternative to poaching. Process mapping exposes delays, while university partnerships build a durable talent pipeline. Along the way, we lay out the classic traps: setting the impossible, ignoring day-to-day reality, excluding the team from goal design, withholding tools and training, and waiting until the end to celebrate. The fix is practical and human—co-create targets, resource the work, track progress in the open, and mark milestones with meaningful recognition that people remember.

Walk away with a playbook you can apply this quarter: anchor goals to credible baselines, define good-great-stretch tiers, align rewards with impact, and treat KPIs as conversations rather than verdicts. If this helps you lead with clarity and heart, follow the show, share it with a manager who could use a win, and leave a quick review so others can find it.

Transcript

Why Stretch Goals Matter

SPEAKER_00 0:13

Well, hello, and welcome to our podcast, Success, Secrets, and Stories. I'm your host, John Wondolowski, and I'm here with my co-host and friend, Greg Powell. Greg? Hey everybody. And when we put together this podcast, we wanted to put out a helping hand and help that next generation and help answer the question of what does it mean to be a leader? Today we want to talk about a subject that I think supports that concept. Our topic for today's podcast is to drive into a topic that every leader and member should understand and know: stretch goals. And stretch goals are more than just an ambitious target, they're a tool for growth and development. In many organizations, stretch goals are introduced to teams to become a little bit more challenged. They're too comfortable. And leadership wants to push them in terms of performance and to look a little further in terms of what they can do. It's human nature to fit into schedules and settle into routines, especially when things are running smoothly and you don't want to really rock the boat. But true growth happens when we step outside our comfort zone. And that's why executive management often brings up stretch goals when setting up KPIs, key performance indicators. You're in leadership now. These are the kind of things that you're going to be asked to do. So understanding it is really an important element of being a leader.

SPEAKER_01 1:51

You know, John, that's a great point. But I'd add that it shouldn't fall solely on the company to push every team to grow. Stretch goals and KPIs are meant to create a dynamic work environment. KPIs are tools. It's not just about measurement, but about inspiring teams to challenge themselves and retire.

The Paperwork Compliance Fix

SPEAKER_00 2:12

Absolutely. And another aspect in terms of stretch goals is recognizing and rewarding employees who have taken on those challenges. Growth happens when people are encouraged to step up into the unknown and try new things. Let me share an example. In my career in a facilities operation, and I was also in the construction side, there were stretch goals and KPIs to reduce expenses. I remember when the manager challenged me to develop a KPI for my own performance review for the next year. It was the first time I was asked to create KPIs as an annual requirement. And if you've ever been in that situation, I know it's tempting to set the bar low so you can guarantee a pay increase. In our department, raises were very modest. They were 1 to 3%. So aiming high with a stretch goal wasn't always encouraged behind the scenes.

SPEAKER_01 3:10

You know, John, that's a common issue. Because if KPIs are designed well, it should be clear what's important for the organization. In repetitive environments like manufacturing, goals are often straightforward. But in fields with unpredictable workloads like maintenance, it's hard to set meaningful KPIs. So, John, you face this in your operations background. How did you create stretch goals in such a varied environment?

Using Data To Protect Staffing

SPEAKER_00 3:36

Great question. Okay, so one example that comes to mind is managing work orders. Many of the mechanics and electricians and the plumbers really hate paperwork. They resist it at all costs. To address this, management introduced a policy that if you submit paperwork that doesn't match your hours worked, you will only be paid for the documented. Okay, so when I say management, that was me. Before I would get 15 to 20 hours of documentation for their work, and all of a sudden I was getting 40 hours of documentation for 40 hours of pay. And it didn't seem to be that big of a leap, but after implementing it, I got that 100% compliance. And then they started to understand how important it really was.

SPEAKER_01 4:26

But John, that's a bold move. And from a human resources perspective, requiring 40 hours of documentation could become a little cumbersome for some employees and create a little bit of fatigue if the employees don't understand the rationale behind the requirement.

SPEAKER_00 4:41

Well, that's true. But Greg, the importance of documentation was really showing the executive management, the value of the workload on our staff. It could demonstrate that our team was doing the job and that I was actually doing this to prevent budget cuts and staff reductions. The more accurate the data was, the easier it was for me to show their effectiveness and to adjustify the actual staffing levels that I had.

SPEAKER_01 5:13

So, John, tell us about how you could use this information to help management during budget crunches.

SPEAKER_00 5:19

Yeah. Well, how I applied it is probably the best way I can I can talk about supporting operations, especially when I was in a hospital environment. For example, one mechanic would have to cover statistically 70,000 to 100,000 square feet, depending upon the site's complexity. When the budgets were tight, we would talk about how far we could stretch to exceed that 100,000 square foot limit. In my case, most of my staff was covering well over that 100,000 square feet maximum.

National Benchmarks That Align Teams

SPEAKER_01 5:53

So, John, we've talked about the power of statistics. In fact, very recently. This is a perfect example of how data helps management see things from your perspective.

SPEAKER_00 6:03

Exactly. And both the management and employees understood these measurements. The 100,000 square feet was something that mechanics supported. And at the same time, Ashley, the American Society for Healthcare Engineering, they were the ones that actually published that 100,000, 70,000 number. It wasn't my idea. It was using a national agency to show and set benchmarking. Setting a KPI to exceed that number gave meaning to both sides of the discussion. Management saw that we were meeting a national standard, and the staff understood that we were achieving something significant.

SPEAKER_01 6:45

So, John, that's a solid example of an operational KPI. But do you have any other stretch goal examples? Maybe one that involved rewarding staff for just going above and beyond?

Energy Savings As Team Stretch Goal

SPEAKER_00 6:54

Yeah, well, you know, that's kind of a mixed bag. But yes, I saw stretch goals used very effectively in terms of measuring energy management. And I want to find a way that I could include everybody into the energy savings management effort. It was a team goal. It wasn't just an individual goal. And it was to reduce 2% of the energy for the prior year as a good standard or level one, if you wish. 3% reduction in energy is an above-average number. And then the stretch goal was reducing 4% of our energy as an outstanding result for the organization, for the team. The staff, in terms of boiler operators and chiller operators, and major assets had probably the most influence to reduce energy. But everybody needed to contribute. I saw 3% and 4% kind of reductions in the summer and in this, what they call the shoulder seasons, the fall and the spring, but the winter results were always limited to basically the heating requirements.

SPEAKER_01 8:03

So, John, could your team keep up with those reductions year after year after year?

SPEAKER_00 8:09

You know, surprisingly, everybody understood that it was a stretch goal that wasn't going away. They did. And that was probably the most amazing part. And they understood that it was tied to the KPIs for the organization. The creativity, the teamwork that emerged from it was amazing. Management noticed it too. They started to recognize the individuals, and we started to give some type of rewards for outstanding energy savings concepts.

SPEAKER_01 8:38

Well, from my HR background and just being an employee, I can tell you recognition can be motivating. But you know, sometimes it's not fair or it doesn't seem fair if only certain roles can make a big impact.

Recognition, Fairness, And Rewards

SPEAKER_00 8:50

That's a great point. And that was one of the problems that we had. To be more inclusive, we shifted it to a department-based reward. If the whole team contributed to the energy savings, everyone shared in the recognition, and really the pay increases that were associated with it. So you funded the reward program with the savings, right? Well, if you want the program to actually get a reward, it's nice if you can give management the savings and the cost reductions that would recover on the a fraction of the cost savings that they were seeing. Even the CFO, who was pretty skeptical at first, gave his approval, which was nothing more than in a board meeting. It gave me a great thumbs up when we had them had a discussion. But those small victories show the impact to leadership that this stretch value not only paid for itself, but it was a valuable part of what the organization was looking for from us as a team.

Funding Rewards From Savings

SPEAKER_01 9:50

So when you think about it, hiring staff brings its own set of challenges, right? That was my life. The quality of candidates and the speed at which we deliver resumes to hiring departments or those hiring managers can make or break the process. Sometimes the talent pool is just limited, and the requirements are tough. That's where stretch goals kind of come in for HR teams. Ah, okay. So, how did you create a stretch goal for your hiring program? So, John, our stretch goals were based on a process map review of our team's hiring plan. That way it tracked a time from when a position was posted to when it was filled. It's a pretty common metric in human resources. Some positions are easy to fill, others are much harder. And the team had to work harder to keep the average time down, especially when facing those tough hires.

SPEAKER_00 10:40

So, what about hiring for those specialty roles where the talent pools are pretty small?

SPEAKER_01 10:46

So this is where it gets interesting. There are standard hiring approaches, and then there are what I call extraordinary approaches. Right? At HR, we sometimes call the extraordinary approach poaching.

SPEAKER_00 10:58

Okay.

SPEAKER_01 10:59

All right. Just as the name implies, reaching out to the competitors' employees to see if they're interested in joining us. But rating another company's staff is very risky. And if your competitors notice, they may start coming after your employees as well.

SPEAKER_00 11:13

Is there a unique way to fill positions without rating your competitors?

Hiring Pipeline And Time-To-Fill

SPEAKER_01 11:18

You know, I think there is, John. And it really depends on the amount of creativity you put into place. Many HR departments build relationships with colleges and universities. They connect with the top professors and the placement professionals so they can help us find and identify those students with the skills our company needs. This creates a pipeline of talent and it helps both sides, right? The school wants to get kids placed. We want to hire kids to come in and do the jobs. So students learn what the employers want. Companies get access to skilled candidates. It's a beautiful thing when it works. It's a creative solution for fulfilling specialized roles.

SPEAKER_00 11:54

So I've heard other HR teams that have done that with other organizations, but is that really a stretch goal?

SPEAKER_01 12:01

You know, it is, especially when that structure doesn't exist. So you got to build those connections, right? They're not necessarily just there. Takes time and commitment. It also may require a little bit of seed money just to get things started. You know, some of those pizza dinners and things like that, right? To connect folks together. It's a sign of a true professional, someone who understands how to nurture a pipeline for candidates for the long term. Of course, hiring is just one example. HR professionals need to understand their marketplace and their company's management team to make sure they're serving their customers the best. So when you like to take that leap and create stretch goals for your team, here are a few general comments that I've seen in my past regarding how to create stretch goals. So some things you can do to create stretch goals, add reflection questions. Have you ever set a stretch goal for yourself or your team? What it was the outcome? What did you learn from that experience?

SPEAKER_00 12:51

Then discuss So that's a nice way of getting them to engage and have that exchange. But did you do something else like mistakes? That's usually the next question you ask, right?

Beyond Poaching: University Partnerships

SPEAKER_01 13:05

Yep. So it's sometimes you know it's good to discuss those common mistakes. Sometimes stretch goals are set too high, and that leads to frustration. How can leaders find the right balance? Another idea, highlight research. Studies show that teams with clear, achievable stretch goals are more motivated and they're more productive. Let's talk about stretch goals and sales, marketing, or IT. How do these departments use them?

SPEAKER_00 13:29

If they develop their own stretch goals, whether they've engaged in it, that that whole process of being able to help the organization grow by doing good stretch goals.

SPEAKER_01 13:41

That's right.

SPEAKER_00 13:42

So do you engage them and to try to show how these different departments actually created the stretch goals, the background or the data? Was that part of the interviewing process?

SPEAKER_01 13:51

Because we're all part of the same company, all have the same overall goals. So if we've got shared success stories, let's share them within each other. And then recap the key takeaways because you're going to get a plethora of information. So stretch goals should be challenging but realistic. Those old SMART goals we used to call them. They work best when tied to recognition and rewards. It makes sense.

How To Design Better Stretch Goals

SPEAKER_00 14:11

Before we wrap up, let's talk about some of the common mistakes. And I and you already touched on it. You know, leaders make whenever they're setting stretch goals. And these pitfalls, you probably heard it during the interviewing process, are, you know, well-intentioned goals that just go off into their own little world and are more frustrating and eventually can create more of a dynamic of failure.

SPEAKER_01 14:36

Absolutely, John. One of the biggest mistakes is setting goals that are simply too ambitious. If a stretch goal feels impossible, people may give up before they even start. So I've got an experience I went through that stays with me to today. I worked at a company where the senior executive team created a lofty sales goal for the next business year. We were trying to impress the board of directors and the shareholders because business was tough. Revenues were tight. Even the senior sales leaders thought the goals were unachievable at the time. The sales team, the folks actually selling the product, had already given up. Their spirit was shot. But we went ahead and went forward with the goal with little confidence we would reach it. And of course, we didn't reach it. Even with projected high bonus payout possibilities, dangling that carrot in front of folks, the sales team was uninspired and just really went through the motions. The purpose of a stretch goal is to inspire and challenge, not to overwhelm. Leaders need to find that sweet spot. Goal should be tough, but still achievable with effort and creativity.

SPEAKER_00 15:41

Yeah, you know, another mistake is failing to connect the stretch goals with the day-to-day activity of the job. If the goal feels disconnected from what the people actually do, you don't motivate them, you demotivate them. For example, asking the maintenance team to double productivity without providing the resources or a clear plan. Just like your other examples of people that are in IT or in other positions, it's just confusing and it adds to the stress of the job.

Common Pitfalls Leaders Must Avoid

SPEAKER_01 16:11

That's right. And sometimes leaders forget to involve their teams in the goal setting process, like my example of the lofty sales school. When stretch goals are handed down from on high with no input from people that are actually executing it, they feel they have no ownership. Involving the team and setting the goal increases buy-in and often leads to better ideas and better results.

SPEAKER_00 16:35

You know, that mistake is proving that there's not enough support. And that's one of the biggest challenges that teams are dealing with. If you're going to give them a target, you have to give them the tools, you have to give them the training, and you have to encourage them at the same time. Stretch goals without support will lead to burnout and disappointment. And it's totally counterproductive to the idea of goals.

SPEAKER_01 17:01

And you know, John, another pitfall is ignoring progress along the way. If you only celebrate when the goal is fully achieved, you miss opportunities to recognize effort and keep people motivated to this journey. Break the stretch goal into smaller milestones and celebrate each milestone win.

SPEAKER_00 17:18

Oh, so true. And and that simple celebration, you know, a pizza does go a long way. That whole thing about breaking bread and having some fun, those are the things that help those goals grow. But, you know, don't forget that tying stretch goals to meaningful rewards. I mean, pizzas are fun, bonuses are better, and there are other things that you can do that say thanks that goes a long way. I've I've seen the power of even a thank you letter from the president of the organization that just does all kinds of positive, that they post it on their walls, that they're impressed that people see them in the executive positions. That whole thing about communication and reward really is important. And it's the hard work that the people put in, and they should feel that their efforts matter.

SPEAKER_01 18:12

So, John, to sum up, here are some key mistakes to avoid. First, setting goals that are unrealistic or unclear. Second, failing to connect those goals to daily work, right? Because they have a regular job to do. Third, not involving the team in the process. You start with that. Getting those folks engaged in creating those goals. Fourth, withholding support or resources. Give them what they need within reason to make the goals achievable. Five, ignoring progress and small wins. As we just talked about, those milestone wins enjoy and reward success along the way. And then finally, the ultimate reward, when you've met or exceeded that goal, don't forget to reward success.

Celebrate Milestones And Support Work

Final Guidance And Ownership Of KPIs

SPEAKER_00 19:01

Yeah. So if you avoid these pitfalls, stretch goals become a powerful tool for growth, motivation, and team success. Access the team's readiness to be receptive to stretch goals and the concept of stretch goals is really what you need to do as a leader. When your team is staged, motivated, and performing well, the results should be obvious. Take an honest look at your team's morale, their capacity to accept new challenges, the available resources to accomplish those goals beyond what you do today. Performance goals, stretch goals, should stretch your team, not strain your team. To wrap up, I want to talk about the advantages of stretch goals and how they create performance indicators and KPIs. Don't let executive management dictate KPIs. That's the purpose of what we're talking about in this podcast. You want to create the KPIs, you want to create the stretch goals because that way you have the ability to steer the organization and your team. And we've seen how stretch goals can be applied in operations in HR, but really stretch goals can be applied to almost any division within a business environment. The ability to do your job well and to show growth within your position is what leadership is all about. Hopefully, today's discussion will inspire you to create a stretch goal and have your team be part of that process, and therefore helping your organization improve overall. So if you like what you've heard, I've written a book called Building Your Leadership Toolbox, and we talk about tools like this, and it's available on Amazon and Barnes and Noble and other sites. The podcast is what you've been listening to. Thank you so much. It's also available on Apple, Google, and Spotify. A lot of what we talk about is from Dr. Durst and his MBR program. If you'd like to know more about Dr. Durst, you can find out on SuccessGrowth Academy.com. And if you'd like to contact us, please send me a line. That's wando seventy five periodjw at gmail.com. And the music has been brought to you by my grandson. So we want to hear from you. Drop me a line. Tell me what's going on, what you like, and what you would like to hear about. It has always helped us to create content. Thanks, Greg. This was fun. Thanks, John.

SPEAKER_01 21:40

As always. Next time.

SPEAKER_00 21:42

Yeah.