Goal-oriented leadership involves setting clear and specific goals where it is known, based on established experience, that they know can be achieved. A goal-oriented leader is grounded in knowledge and a realistic outlook, being aware of the context in which the organisation operates, such as he traditions on which it is based, and the risks being taken. Goal-oriented leadership may involve establishing a hierarchy of goals that cascade down the organisation, or a sequence of goals that acts as steps towards a long-term objective.

Examples of goal-oriented leaders include sales managers, teachers, sports coaches, or mentors who set a series of challenges to encourage learning and development. A team sports coach, for example, not only focuses on the overall goal of winning, but may also give each member of the team different individual goals. If all the different goals are achieved, they will combine to improve the team's overall performance and achieve the collective goal.