A set of “stretch” financial and strategic objectives

helps top executives determine how close the company is to true maximization of both revenues and profits.

helps lower-level managers and employees gain a clearer understanding of the company’s strategic vision, strategic intent, and strategy.

helps a company avoid ho-hum results.

is one of the best managerial tools for motivating company personnel to execute the strategy with greater proficiency and at lower overall cost.

helps convert a company’s strategic intent into meaningful performance targets