Set realistic goals.

The best managers have a knack for setting goals that are both realistic and motivating. They have a nose for the difference between a stretch target, which will motivate a high level of performance, and an unachievable target, which will put people on a treadmill—with the manager pushing.

You have to be able to measure success for your goals to be useful.

Great managers know that a well-defined goal is the best way to focus effort and create accountability. But simply because a goal is well defined does not mean it is realistic. When setting goals, managers can use a simple formula: Set goals that are both specific and stretch.

A specific goal is one that is clearly described and easy to understand. A stretch goal is one that presents a challenge, an opportunity to grow, and a chance to achieve something remarkable. The best goals are both specific and stretch.

To help set realistic goals, managers should consider three key factors: the level of effort; the amount of time available; and the extent to which the goal is consistent with the organization’s current strategy, structure, and culture.

Set realistic goals; don’t set the bar too high for your team.

This is not to say that every goal must be 100 percent realistic. It’s often helpful to give employees stretch goals to motivate them and to encourage them to stretch themselves. By setting stretch goals, managers are saying, “I know you can do this, and by God, I want you to.” To do this well, however, managers must also be willing to acknowledge that not every goal can be achieved. Acknowledging the possibility of failure is an important part of the process. Managers must also be willing to offer support to those who fail to achieve their goals.

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