Stretch Goal
A Stretch Goal is an intentionally ambitious target that pushes beyond what seems comfortably achievable. In the OKR framework, working with stretch goals is standard practice – achieving 70% of a stretch goal counts as success and drives innovation.
What is a Stretch Goal?
A Stretch Goal is a target deliberately set beyond the comfort zone. It challenges teams to find creative solutions rather than following the beaten path. In the OKR framework, stretch goals are not the exception but the rule – especially for Moonshot OKRs.
Why Stretch Goals in the OKR Framework?
Stretch goals serve several important functions:
- Prevent sandbagging: Without stretch goals, teams would set easy targets to guarantee 100%
- Foster innovation: Ambitious goals force creative approaches instead of routine solutions
- Unlock potential: Teams often achieve more than they think possible
- Culture of learning: Partial achievement of big goals is valued
Achieving 70% of an ambitious goal is more valuable than 100% of an easy goal – that's the core philosophy of stretch goals in OKR.
The 70% Rule in Practice
In OKR Scoring, for stretch goals:
- 0.7 (70%) = success: The team planned ambitiously and delivered strong results
- 1.0 (100%) = target too low: Constant full achievement indicates sandbagging
- Below 0.3 = unrealistic: The target may have been too ambitious or resources were lacking
Example: Key Result: Increase revenue from 1M to 2M euros Achieved: 1.7M euros = Score 0.7 = Success!
Stretch Goals vs. Unrealistic Goals
| Aspect | Stretch Goal | Unrealistic Goal |
|---|---|---|
| Achievability | Difficult but possible | Practically impossible |
| Effect | Motivating | Demotivating |
| Based on | Data and assessment | Wishes without foundation |
| 70% achievement | Meaningful progress | Still far from target |
Prerequisites for Stretch Goals
- Psychological safety: Missing targets must not be punished
- Separation from compensation: OKR scores must not be tied to bonuses
- Leadership understanding: Leadership must actively live the 70% philosophy
- Clear labeling: Distinguish between Committed OKRs (100% expected) and stretch goals
Northly supports clear labeling of stretch goals and automatically adjusts scoring interpretation so teams and leaders have the right expectations.
Related Terms
Moonshot OKR (Aspirational OKR)
A Moonshot OKR (also called Aspirational OKR or Stretch OKR) is an intentionally over-ambitious goal where 60–70% achievement already counts as success. It pushes teams beyond their comfort zone and fosters innovation and creative thinking.
OKR Scoring
OKR Scoring is the structured process of evaluating Key Result achievement at the end of an OKR cycle. Typically a 0.0 to 1.0 scale is used, where a score of 0.7 (70%) is considered successful for stretch goals.
Objective
An Objective is a qualitative, inspirational goal within the OKR framework. It describes what an organization or team wants to achieve in a given time period and serves as the north star for all stakeholders.
Frequently Asked Questions
What is a stretch goal in OKRs?
A stretch goal is an intentionally ambitious target that goes beyond the comfort zone. In the OKR framework, 70% achievement of a stretch goal counts as success, fostering innovation and creative thinking.
Why does 70% count as success?
Because stretch goals are deliberately set over-ambitiously. Achieving 70% of an ambitious target often creates more value than 100% of an easy target. The 70% rule prevents teams from setting targets too low.
What is the difference between a stretch goal and a Moonshot OKR?
A stretch goal is the concept (ambitious target-setting principle), a Moonshot OKR is the OKR type that applies this concept. All Moonshot OKRs are stretch goals, but not every stretch goal is an OKR.
Can stretch goals be demotivating?
Only in environments without psychological safety. When missing targets is punished or scores are tied to bonuses, stretch goals lead to frustration instead of innovation.