While principal goal-setting has been shown to be an important leadership practice, there is little research examining principals' goal-setting and goal-achievement. This research examined novice principals' school improvement goals and factors affecting their achievement. Goals from 460 principals enrolled in a national induction programme were categorised revealing a strong emphasis on instructional and student-centred leadership. After 18 months, 258 of those principals, and their mentors, rated their achievement. Principals also rated five potential achievement predictors. Goal achievement tended to be high, with commitment, effort, learning and support serving as positive predictors of success. In contrast to what goal-setting theory suggests, goal challenge was a negative predictor of achievement. The analysis of two contrasting cases revealed possible explanations for this negative relationship. These included novice principals' ability, self-efficacy and attributional processes. This study highlights the role of self-efficacy in the process of goal-setting and pursuit. It emphasises that consideration needs to be given to how novice principals' self-efficacy can be developed and sustained. Implications for practice in the area of educational leadership and leadership development are discussed.