It's no secret that I'm a proponent of goal setting as a tool for achieving success. So it was with great interest that I read a recently released Harvard Business School Working Paper that explored the potential negative side effects of goal setting in an organizational environment.

The paper, Goals Gone Wild: The Systematic Side Effects of Over-Prescribing Goal Setting, explores the premise that indiscriminate goal-setting in organizations can have a number of harmful side-effects. Among them are:

• A narrow focus that neglects non-goal areas
• A rise in unethical behavior
• Distorted risk preferences
• Corrosion of organizational culture
• Reduced intrinsic motivation

The paper is well researched (no surprise there) and provides a balanced look at both the risks and rewards of goal setting in an organizational environment. It includes a set of 10 questions to help leaders determine whether goals are the best method for motivating their employees:

1. Are the goals too specific?
2. Are the goals too challenging?
3. Who sets the goals?
4. Is the time horizon appropriate?
5. How might goals influence risk taking?
6. How might goals motivate unethical behavior?
7. Can goals be idiosyncratically tailored for individual abilities and circumstances while preserving fairness?
8. How will goals influence organizational culture?
9. Are individuals intrinsically motivated?
10. Consider the ultimate goals of the organization and what type of goal (performance or learning) is most appropriate?

The authors' conclusion is a sound one:

"Rather than dispensing goal setting as a benign, over-the-counter treatment for students of management, experts need to conceptualize goal setting as a prescription-strength medication that requires careful dosing, consideration of harmful side effect, and close supervision."

Goals Gone Wild:The Systematic Side Effects of Over-Prescribing Goal Setting is an important look at the dark side of goal setting that I highly recommend to anyone with an interest in the topic. Having read it myself I can't say that I disagree with the authors' conclusions. To paraphrase a statement that appears on my home page, "Goal setting done right can transform your organization. Done wrong, it can destroy it."