Cascading OKRs: A guide to what, when, and how

Cascading OKRs: A guide to what, when, and how

The whirlwind of a global pandemic, economic shifts, and geopolitical tensions has made agility an indispensable skill for businesses. While organizations become more conscious about objectives and key results (OKRs) as the guide and compass to scale up, for strategic response to a crisis, cascading OKRs are a handy feature for an all-hands-on-deck approach. 

Among the top lessons learned by global companies hit by crises in the past few years were a defined chain of command and improving communication with employees, according to a Deloitte survey.  

For future-ready companies, cascading OKRs can provide resilience through a structured approach to alignment, ensuring that everyone in the organization is working towards common goals, despite uncertainties.  

Since a top-down approach is considered controlling, Synergita OKR has designed flexibility into its feature of cascading OKRs. You as a leader can choose to configure settings in a way that your employees can opt to accept or reject a cascaded OKR. This gives room for the management to hear out what employees’ approach maybe and can adjust OKRs mutually.  

What is Cascading OKR? 

It begins with objectives set at the top that are cascaded down to teams and individuals, ensuring everyone is aligned with the broader organizational purpose while fostering ownership and accountability. The company key results are assigned as objectives to the teams, and in turn, they become the objective of individuals.  

Focusing on outcomes, cascading OKRs ensure that everyone in the organization understands the desired results and their role in achieving them. This outcome-oriented approach fosters a sense of purpose and clarity, driving motivation and engagement across teams. 

Here’s an example of how company-wide OKRs set the direction for each department, and these objectives are then cascaded down to specific teams with actionable key results aligned with the company’s overarching goals. 

Company-wide OKR 

Objective: Become a market leader in cloud computing solutions. 

KR1: Achieve a 30% market share in the cloud computing industry. 

KR2: Develop and launch three new innovative cloud-based products. 

Cascaded Objectives for the Engineering Team 

Objective: Develop and launch three new innovative cloud-based products. 

KR1: Increase the speed of product development by implementing agile methodologies. 

KR2: Enhance product reliability by reducing system downtime by 25%. 

KR3: Conduct monthly training sessions to upskill team members on emerging cloud technologies. 

Individual Objectives for Cloud Engineers 

Objective: Increase the speed of product development by implementing agile methodologies. 

KR1: Complete at least two major feature developments per quarter. 

KR2: Participate in weekly knowledge-sharing sessions to enhance team collaboration and expertise. 

KR3: Achieve a code review approval rate of 95% or higher. 

Similarly, the company’s key result of capturing 30% market share in the cloud computing industry would be cascaded down to the sales team as an objective for which they would structure for key results such as increasing sales revenue from cloud services by 50% compared to the previous year and implement targeted sales strategies to penetrate new market segments. 

Benefits of Cascading OKRs 

If alignment puts the company in a direction, think of cascading OKRs to power up together. Cascading OKRs, originating from high-level enterprise objectives and flowing down to product units and teams, foster alignment and clarity across the organization. It streamlines operations and sharpens strategic focus, yielding significant benefits: 

  1. Alignment: Cascading OKRs ensure coherence across all levels, fostering collaboration and breaking down silos. 
  1. Transparency: Every member understands their role in achieving organizational goals, enhancing decision-making and motivation. 
  1. Accountability: Clear objectives and key results drive accountability, empowering teams to meet targets and solve challenges proactively. 
  1. Focus: By aligning efforts with strategic objectives, cascading OKRs maintain focus and optimize resource utilization. 
  1. Agility: Regular review and adjustment of OKRs enable swift, coordinated responses to evolving circumstances, enhancing organizational agility. 

When do Cascading OKRs work? 

In times of crisis or when targeting specific objectives, top-down OKRs offer precision and clarity. One of its most famous top-down strategy usages was detailed by former Intel VP of the Microcomputer Systems Division, Bill Davidow, to overcome an existential threat in their Operation Crush campaign in OKR expert John Doer’s book “Measure What Matters”. In the late 1970s, when Motorola was producing faster and more user-friendly microprocessors, Intel cascaded OKRs throughout the company, realigning priorities within four weeks. The result: It reclaimed the market by 1980. 

When cascading goals throughout your organization, it’s essential to strike a balance between top-down direction and bottom-up input. While setting goals solely from the top can lead to a lack of autonomy among employees and the risk of assigning irrelevant objectives, empowering teams to define their own contributions fosters ownership and relevance. Instead of cascading all goals from the top down, executive leaders should focus on establishing the main corporate objectives, allowing business units, departments, and teams to collaboratively determine their role in achieving these goals. 

How Synergita OKR Cascading Works 

Synergita OKR feature is meant to make aligning company objectives with team and individual goals seamless. You can turn on cascading as necessary. Here’s a quick run-through of how to cascade your OKRs using the platform. 

  1. Initiate Cascading: Start the cascading process effortlessly by selecting the “Assign as objective” checkbox in the “Define key result” section. 
  1. Customize Cascaded Objectives: Tailor objectives to your organization’s structure with options to choose OKR types (Team or Individual) and specify owners seamlessly. 
  1. Streamline Progress Tracking: Save key results within the OKR framework, ensuring alignment and accountability across all levels of your organization. 
  1. Drive Collective Progress: Monitor the impact of Cascaded Objectives on Parent Objectives, fostering collaboration and driving organizational success. 
  1. Empower individuals: Employees can accept or reject cascaded objectives directly from the objective page, enabling swift adjustments. 
  1. Maintain Alignment: Easily view and edit cascaded objectives from the OKR Details page, ensuring continued alignment and focus on achieving organizational objectives. 

Synergita OKR Cascading empowers organizations to align strategic objectives with individual and team goals, driving collaboration, transparency, and results. Synergita’s robust features equip businesses to unlock their full potential, driving success in today’s competitive landscape. 

Things to keep in mind when Cascading OKRs 

Once team goals are established, managers and individuals must align their objectives accordingly. This collaborative approach ensures that each member understands their contribution to the broader organizational objectives and feels empowered to drive meaningful outcomes. After setting individual goals, it’s important to cross-check them both from the top down and the bottom-up to confirm alignment and relevance across all levels of the organization. This ensures that goals are not only achievable but also directly contribute to the organization’s overall success. Here are some essential points to keep in mind: 

i. Start with Clear Communication 

Begin by communicating top-level objectives to relevant departments and teams. Illustrate how their work directly contributes to achieving these objectives, emphasizing their crucial role in the broader organizational context.  

ii. Foster Collaboration and Inclusion 

Engage all teams in the cascading process to foster collaboration and cross-functional communication. Transparency and accountability are essential for maintaining momentum and ensuring successful OKR cascading. 

iii. Monitor and Review Progress 

Regular check-ins are vital for assessing progress towards each objective and key result. These sessions offer opportunities to discuss challenges, celebrate successes, and make any necessary adjustments. 

iv. Prioritize Adaptability 

While OKRs provide a structured framework for goal setting, flexibility is crucial. External and internal factors may necessitate adjustments to objectives or key results. Maintaining open lines of communication is essential for successful adaptation. 

Stay on the Agile Course  

The strategic implementation of goal cascading holds significant potential for organizations striving to enhance their performance and achieve their objectives efficiently. When executed effectively, goal cascading fosters strategic alignment across all levels of the organization, facilitating clearer decision-making processes, promoting transparency, and boosting employee engagement. Partner up with Synergita OKR to maximize your resources and achieve clarity and transparency throughout your organization. 

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