Stretch target
A stretch target is a performance goal set above what current methods can easily achieve, intended to drive breakthrough thinking rather than incremental effort; the risk is demoralisation or gaming if the goal appears unattainable.
See it move
A realistic budget is built from what the organisation can achieve with today's resources and carries full accountability. A stretch target is set deliberately beyond that — a goal current methods cannot reach — meant to force managers to rethink processes rather than simply work harder. Running both side by side, without treating the stretch goal as binding, protects morale while still raising ambition.
Check yourself
A sales team has a stretch target of €5 million in new annual revenue. By late in the year it is clear the team will reach approximately €3.2 million. Which risk associated with stretch targets does this scenario most directly illustrate?