This study shows that passion may have a potential downside for setting challenging goals. Hypotheses are developed by drawing on self-determination theory and goal-setting theory. Data is collected from a sample of 134 team leaders and hypotheses are tested using ordinary least squares regression analyses. Findings demonstrate that in a project context, team leaders' own competence positively influences their obsessive passion, while their perceptions of team members' competence positively influence their harmonious passion. Goal-setting speed is included as a mediator in the relationship between passion and degree of goal challenge, proving both harmonious passion and obsessive passion ultimately negatively influence the ability to develop challenging goals because they increase the likelihood of rushing into the goal-setting process.