I've written before about the science that helps explain why and how constraints and limits, often in the form of intelligent, well-set stretch goals, result in more creative solutions.
Too often, though, managers set what appears to be a good stretch goal, only to discover that it did not produce the hoped-for innovative thinking. One common reason for this is that the goal was in fact not "stretch" enough. When I ask executives what they consider "stretch," I commonly hear about 5% to 10% increments in improvement.
To read the original article: Use Tension and Conflict to Create Breakthrough Products - Matthew E. May - Harvard Business Review