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title: The Tension Created By Stretch Goals
description: &quot;Low goals do cause lower performance and high goals increase the percentage of cheating&quot;
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author: Shane Parrish
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article:published_time: 2015-05-11T11:00:22.000Z
article:modified_time: 2026-03-31T08:20:13.570Z
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og:title: The Tension Created By Stretch Goals
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twitter:title: The Tension Created By Stretch Goals
twitter:description: &quot;Low goals do cause lower performance and high goals increase the percentage of cheating&quot;
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# The Tension Created By Stretch Goals


by 

[Shane Parrish](https://time.com/author/shane-parrish/)


## Shane Parrish


May 11, 2015 11:00 AM UTC

![basketball-ring-backboard](https://static.time.com/v3/assets/bltea6093859af6183b/blte39a08aa0f904ea6/698787062dce0137329de682/corbis-42-26544583-copy.jpg?branch=production&width=3840&quality=75&auto=webp&crop=3:2)

Seoul, South Korea --- Basketball ring and backboard --- Image by © Sung-Il Kim/Corbis

Seoul, South Korea --- Basketball ring and backboard --- Image by © Sung-Il Kim/CorbisCorbis Images

by 

[Shane Parrish](https://time.com/author/shane-parrish/)


## Shane Parrish


May 11, 2015 11:00 AM UTC

It’s one thing to set big stretch goals and it’s another to acknowledge the tension and incentives that creates within an organization.

Charlie Munger, speaking at the 2000 annual meeting for Wesco Financial, explains:

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> “”

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Each organization has to find its own way.

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> “”

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**_This piece originally appeared on_** [**_Farnam Street_**](http://www.farnamstreetblog.com/)**_._**

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