Based on the principles of management by objectives, management by challenge brings a stimulating and exciting dimension through the motivation of personal achievement.
By associating it with the team rather than with each individual separately, the challenge brings other additional benefits:
The challenge will be taken up by the team and not by an isolated member of staff. On their own, they could well find themselves without resources or support from their colleagues, who are also involved in individual challenges.
Challenges are different from competitions. Competition tends to pit individuals or groups of individuals against each other, with the winner being distinguished from the group, and the losers from the mission.
Competition affects employees' social identity, especially when it is undergone. Unlike an athlete at the Olympic Games, an employee does not seek to measure himself against his colleagues. They seek to develop their skills and make themselves useful to the system that employs them.
Today's collective morality leads us to believe that the most important thing is to beat others, to fight, to win. We live in a competitive society. But a winner is a manufacturer of losers. We need to rebuild a human society where competition is eliminated. I don't have to be stronger than the other guy. I have to be stronger than myself, thanks to the other. - Albert Jacquard
[1] https://www.hbrfrance.fr/chroniques-experts/2019/09/27890-il-suffit-de-10-des-collaborateurs-pour-changer-toute-lentreprise/