Why Should Your Company Emphasize Setting Aspirational Goals in OKR Practice Instead of Committed Goals?
Organizations set strategic goals to drive progress and achieve success. In OKR best practices, goals can be categorized into two types:
- Committed Goals (Rooftop Goals)
- Aspirational Goals (Moonshot Goals)
Committed Goals (Rooftop Goals)
Committed goals, also known as rooftop goals, are realistic, measurable, and achievable within a defined period, such as monthly or annually. These goals are typically based on historical data and established key performance indicators (KPIs). Since they are within reach and predictable, they serve as a stable foundation for business performance.
Aspirational Goals (Moonshot Goals)
Aspirational goals, or moonshot goals, push the boundaries of what is currently possible. They are designed to stretch teams beyond their comfort zones, encouraging them to think creatively and innovate. These goals are difficult but not impossible—they require extra effort, strategic thinking, and teamwork to achieve.
The Benefits of Aspirational Goals
Aspirational goals inspire teams to think bigger and achieve more than they originally believed possible. However, setting goals that are too extreme can backfire. If a goal seems completely unattainable, employees may feel discouraged and give up.
The Right Balance: Hard but Achievable Goals
Think of setting goals like weightlifting. If you can bench press 100 lbs today, you wouldn’t immediately jump to 200 lbs. Instead, you would gradually increase the weight—10 lbs at a time—until you reach your target.
The same applies to strategic goal-setting. When goals are challenging but not impossible, employees stay motivated and engaged. They problem-solve, think outside the box, and collaborate to achieve their objectives.
Example: Setting the Right Aspirational Goal
Let’s say your company has a sales target of $200,000 per salesperson per month. This is your committed goal. Now, you want to introduce an aspirational goal to push your team beyond their current limits.
Would you set:
A) A $600,000 target (300% increase)?
B) A $240,000 target (20% increase)?
The correct answer is B – a $240,000 target.
A 300% increase would be unrealistic, leading to frustration and burnout. A 20% stretch goal, however, is challenging but achievable with the right strategy and support.
Strategies to Achieve Aspirational Goals
To meet the new sales target, consider:
- Collaboration Between Product & Sales Teams: Can the product team help identify unmet customer needs?
- Expanding the Product Line: Can additional offerings boost revenue?
- Cross-Team Alignment: Can different departments work together to remove roadblocks?
Encouraging cross-functional teamwork brings fresh perspectives and unlocks innovative solutions.
The Ideal Goal-Setting Formula: The 60-70% Rule
Research suggests that setting goals where teams can achieve 60-70% of the target is the sweet spot for motivation.
For example, if your goal is to increase sales from $200,000 to $240,000, and your team reaches $228,000, that’s 70% of the increased target. Even though they didn’t hit 100%, they still exceeded the original committed goal—which is a success.
Support & Cross-Team Collaboration
For teams to reach higher goals, leaders must provide support, remove barriers, and foster collaboration. This means:
- Helping teams align their efforts
- Clearing obstacles that slow progress
- Encouraging cross-functional cooperation to find creative solutions
With the right support system, aspirational goals become attainable, and organizations can reach new heights.
In Conclusion
To drive growth and innovation, companies should prioritize aspirational goals over committed goals.
- Set aspirational goals that stretch teams but remain achievable.
- Encourage employees to think creatively and push boundaries.
- Foster cross-functional collaboration to find better solutions.
- Provide leadership support to clear roadblocks.
How Target Align Helps Startups with Agile OKRs
Target Align is a powerful platform designed to simplify OKR implementation and Agile execution for startups. With an intuitive interface and advanced tracking capabilities, Target Align helps startups:
- Set clear, measurable OKRs aligned with business strategy.
- Integrate OKRs with Agile workflows, ensuring teams stay focused.
- Enhance transparency with real-time tracking and reports.
- Encourage accountability through structured check-ins and peer feedback.
- Foster alignment between leadership and teams by breaking down top-level objectives into actionable key results.
By using Target Align, startups can eliminate confusion, streamline goal-setting, and drive sustainable growth.
If you’re interested in learning more about OKRs and its implementation, sign up for Target Align’s video course. For more resources, visit www.targetalign.com and check out their OKR 101 material.
