If achieving critical business results feels like a battle to get everyone pulling in the same direction, you’re not alone. As companies grow, aligning the efforts of every team and individual to the company’s strategic priorities becomes increasingly complex.
This is where cascading OKRs—Objectives and Key Results—come into play. Let’s dive into how cascading OKRs work, the benefits, and the tools you can use to get it right.
🔄 Why OKR Cascading Matters
As you scale, execution gets harder and harder. Teams might be working hard—but if every team / person is pulling in different directions, the work does not turn into impact and momentum at a company level.
OKR cascading ensures that the vision at the top translates into actionable goals for every function, team, and individual. The process of cascading OKRs gives you a structured framework to:
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- Translate strategy into action: Break down high-level objectives into actionable goals for every layer of the organisation.
- Maintain alignment: Ensure that every individual’s efforts contribute to the company’s strategic priorities.
- Drive focus: Prevent teams from being distracted by competing priorities.
- Foster accountability: Make it clear who is responsible for what at every level.
In summary, when good leaders cascade OKRs they produce teams that are focused, aligned, committed, and accountable, and thats the only sort of team that executes effectively.
📈 How to Cascade OKRs Effectively
Here’s a brief guide to cascading OKRs throughout your organisation:
1. Set Annual Company OKRs
Start with the big picture. Define the top-level Objectives and Key Results that align with your three-year game plan. For example:
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- Objective: Pursue market leadership in sustainable fashion.
- Key Results:
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- Increase market share from 15% to 20%.
- Secure distribution partnerships with 10 new, large retail chains.
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2. Cascade to Functions and Teams
Task Exco/top leaders to each develop their OKRs to align to the company OKRs. Each leader must identify what they must deliver, for the Company to succeed in achieving its OKRs. Give guidance as necessary. For example:
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- Marketing Objective: Increase brand awareness in Europe.
- Key Results:
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- Achieve 25% growth in EU website traffic.
- Launch in 3 new EU markets.
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As the CEO, carefully review and refine each leader’s OKRs until you can confidently say, “if they all achieve their OKR’s, then we will achieve the company OKR’s.” This circular (bottom-up then top down, iterative) alignment process empowers the leaders and ensures ownership and accountability, while providing a process to ensure OKRs align to company priorities.
3. Align Individual OKRs
Top leaders (excluding CEO) repeat the above cascading process for people reporting to them. Each person’s OKRs should contribute directly to the team’s goals. This bottom-up alignment empowers employees and ensures accountability.
4. Track and Review Progress Regularly
Use weekly sprints, check-ins, and monthly reviews, with scoreboards, to monitor progress and adjust as needed.
Free tools to get started
Mastering cascading OKRs is critical to scaling your business. If you’re ready to take the next step, explore our tools and resources:
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- The Art of Scale Book (Ch 17-18): Chapters 17 and 18 dive into the mechanics of cascading OKRs and how to integrate them into your leadership and execution system.
- OKR Toolkit: Access templates and tips for cascading OKRs. (on Artofscale.io; see Tools)
- OKR Guide E-Book: A practical guide to defining and implementing OKRs.
- (on Artofscale.io; see Tools)
Align your organisation and accelerate your growth. Master cascading OKRs and unlock your team’s full potential.Check out our next blog on OKRs Cascading for actionable insights and practical steps.