Organizations in Pursuit of the Seemingly Impossible: A Multi-Method Investigation

Although the frequency with which organizations pursue seemingly impossible goals remains unknown, it seems clear from available research that such goals are used with some regularity. Because pursuing seemingly impossible goals, popularly known as stretch goals, carries substantial risks in addition to the potential for significant gains, we attempt to address important questions that have been left open in the limited empirical work to date. We first review results from a national survey assessing the incidence of stretch goal pursuit in organizations across multiple industries. We then present the results of two field studies: a multi-informant self-report survey of 182 units in a variety of different organizations, and a comparative case study of eight clinics within one healthcare organization. Both studies suggest that unabsorbed slack and strong performance in the recent past are requisite factors for improvements in learning and performance when pursuing stretch goals. The studies also highlight cognitive, affective, and behavorial mechanisms through which slack and recent performance seem to affect organizational outcomes. Our findings provide actionable insights in an area of study important for both scholarship and practice. Although typically negative for organizations, stretch goals can be positive in some contexts.