The Future of Target-Setting Theory and Practice

ABSTRACT This paper highlights three emerging trends in target setting: (1) Objectives and Key Results (OKRs), (2) sustainability goals, and (3) targets for artificial intelligence (AI) agents. OKR is increasingly used in practice but remains under-researched, offering opportunities to apply existing theories to understand its effectiveness. Although sustainability targets are widely reported externally, their internal use and impact are less understood. Finally, organizations start delegating tasks to AI agents. Target setting can be a means to align autonomous AI agent behavior with organizational goals. Researchers must examine how the direction, reflected in target metrics, and the demands imposed by target difficulty or budget limits, shape AI behavior—sometimes in unintended ways. JEL Classifications: M12; M14; M15; M41.