Leveraging Stretch Goals in B2B Sales

Business loves its buzzwords. Of course, they are typically products of their time and can fall out of favor. “Pulling the trigger” is one such example. Some, such as “BHAGs,” an acronym for Big, Hairy, Audacious Goals, are simply best forgotten.

Thankfully, while we don’t hear much about BHAGs today, we do hear a lot about stretch goals. Same concept, better terminology. At best, these inspire and motivate sales teams to achieve results greater than they thought possible. But it’s not as easy as asking teams for “a moonshot” or telling them to “reach for the stars.” A haphazard approach or hasty implementation can result in decreased performance and greater attrition.

Therefore, stretch goals require a considered and strategic approach. And this starts with rollout and how you explain them to your team. Here, we will discuss leveraging stretch goals in B2B sales. This includes setting goals, effective implementation, and understanding their impact on sales teams and organizations.

Understanding Stretch Goals

In contrast to easily achieved incremental goals, stretch goals reach beyond what’s expected. Thus, they must be ambitious and challenging. You want your sales team to see them as difficult. However, it’s important they are not completely out of reach.

Also, ensure team members know stretch goals are not a punishment. You don’t want to see sales teams fail. As such, provide additional resources to enable teams to meet their stretch goals. This can include sales automation apps, incentive plans, and recognition programs, as well as sales training and coaching.

The point of stretch goals is to push sales teams beyond their comfort zones. Thus, they should encourage exploration and experimentation. They should test your team’s skills and provoke them to develop new strategies. Most importantly, they should propel teams to achieve results greater than their usual numbers.

Typically, goals are based on historical performance. In this, they can be comforting. Sales teams already know what they must do to achieve them. However, if team members know how to achieve X results, stretch goals force them to imagine Y and Z results. This requires creativity and innovation. It raises the bar to achieve superior results.

The Timing of Stretch Goals

The timing of your stretch goal rollout is critical. In fact, according to the Harvard Business Review, it can determine their success or failure. Your organization must be properly prepared. As such, consider the following:

• Resources: First, determine if you have sufficient resources to implement stretch goals. If you do, but your team has gotten complacent, stretch goals can be a great motivator. But if you don’t have the resources, it’s best to wait.
• Recent Performance: If your team is coming off a series of big wins, they are probably feeling confident. However, if they’re coming off a series of losses, stretch goals can add stress.
• Sales Team Makeup: Some teams are simply better equipped than others to handle stretch goals. For example, a team of recent hires might not respond well to additional pressure. The same is true for a well-seasoned team coming out of a downturn.
• Current Market and Economy: We all know buyers can be reluctant during times of economic uncertainty. How confident are you in your projections and forecasts? If you’re a little skeptical or, at best, merely hopeful, it’s probably not the right time. Consider smaller, more targeted sales goals to boost confidence until conditions improve.

The Importance of Stretch Goals in B2B Sales

Stretch goals offer the following benefits for organizations:

• Increased Performance: Ambitious targets inspire engagement and effort. As team members rally around a common, challenging objective, their focus and commitment increase.
• Innovation: Stretch goals encourage teams to think outside the box. As they adopt new strategies and innovative solutions, they develop new processes and techniques. These contribute to long-term success.
• Enhanced Skill Development: Reaching beyond their norm, sales teams develop new skills and competencies. These not only help them achieve current goals. They set the stage to meet future challenges.
• Improved Agility: As teams “stretch” to achieve new and ambitious targets, they must adapt to changing markets and opportunities. This can foster greater collaboration and improve individual decision-making.
• Foster a Culture of Excellence: By pushing their teams to achieve more, organizations create a culture of high performance and continuous improvement. This gives them a competitive edge.

Setting Effective Stretch Goals

Setting stretch goals requires careful planning and consideration. To be effective, stretch goals should be:

• Specific and Clear: Clearly defined stretch goals have specific outcomes and metrics. For example, don’t just seek to increase sales. Instead, an effective stretch goal may seek to increase quarterly sales by 30% by acquiring 50 new clients.
• Challenging but Achievable: Stretch goals should push teams out of their comfort zones. However, with additional effort and determination, they must still be achievable. Out-of-reach stretch goals can demotivate.
• Align With Business Objectives: To ensure success, align stretch goals with your business objectives and strategies. For example, say your organization seeks 50 new manufacturing clients by the end of the year. Push your team to tap deeper into that market and net 75 new clients. When you seek more than you need, you may miss the target. However, you still exceed your requirements.
• Measurable and Trackable: Clear and well-defined metrics allow teams to track progress and course correct. Regular tracking and reporting keep teams focused and motivated.
• Time-Bound: Specific timeframes provide a sense of urgency. This helps teams avoid distractions. Deadlines should be realistic and give the team time to achieve the goals while maintaining high performance.

Implementing Stretch Goals

Implementing stretch goals requires a comprehensive strategy. Here are some keys:

• Communicate the Vision: Sales teams need to understand the rationale behind stretch goals. This includes why you’re implementing them, what you hope to achieve, and their benefit to the organization. In addition, they must understand measurements and how their individual efforts contribute to the organization’s larger goals.
• Provide Support and Resources: Resources and support are critical. This may include training, new tools and technology, or interdepartmental support, such as increased collaboration between sales and marketing.
• Foster Collaboration: Encourage open communication among team members to share ideas, strategies, and best practices. Collaboration leads to innovation and more effective strategies for achieving the goals.
• Monitor Progress and Provide Feedback: This can proactively identify challenges or obstacles and allow for timely adjustments. Recognize and celebrate milestones and achievements to maintain motivation and momentum.
• Encourage Continuous Improvement: Stretch goals should be viewed as part of a continuous improvement process. Encourage teams to reflect on their experiences. They should learn from both their successes and failures, and they must continuously seek ways to improve.

Measuring the Impact of Stretch Goals

The impact of stretch goals on B2B sales can be assessed through various metrics and outcomes, such as:

• Sales Performance: Performance is the most direct measure of the impact of stretch goals. Analyze how well the sales team has performed relative to the stretch goals. Assess whether the goals have led to increased sales, improved conversion rates, or higher revenue.
• Team Motivation and Engagement: Motivation and engagement are also critical gauges. If your team is displaying increased enthusiasm and commitment, your stretch goals are working.
• Innovation and Improved Workflow: Another important measurement is if your stretch goals have led to innovative solutions or improvements in sales processes. Have they led to new strategies, adoption of new technology, or streamlined processes?
• Skill Development: Has your sales team developed new skills? Are they doing more with previously acquired skills?  
• Organizational Growth: Analyze the bigger picture. Evaluate if your stretch goals have contributed to business growth, market expansion, or increased competitiveness.

Challenges and Considerations

While stretch goals can be highly beneficial, they also come with challenges. These include:

• Risk of Burnout: If goals are not properly monitored and managed, they can lead to burnout. Remember, you want stretch goals to be challenging. But they must not be overwhelming. Additionally, provide support and resources to help teams manage stress.
• Resistance to Change: Let’s face it, sales teams will resist goals that are unrealistic or disrupt their processes. Therefore, work with teams to address concerns. When team members have a seat at the proverbial table, they are more likely to buy in.
• Balancing Ambition and Realism: With stretch goals, it’s important managers and leaders don’t get carried away. Stretch goals are not an excuse for pie in the sky projections. Instead, they should be challenging but achievable. Regularly review and adjust goals to keep them relevant and attainable.
• Measuring Success: Measuring the success of stretch goals can be complex. Use a combination of quantitative and qualitative measurements and ensure data accuracy and relevance.

Conclusion

Stretch goals can be a powerful tool to drive performance, innovation, and growth. They can motivate and inspire sales teams to develop new skills, implement new processes, and achieve greater success.

However, they are not always right for all sales teams. As we’ve seen, effective timing, rollout and implementation are critical. These keys, along with clear communication, ongoing support, and consistent monitoring, can boost performance and results. Ideally, stretch goals can propel teams to reach heights they never imagined. We hope this helps your sales team achieve more with stretch goals.