OKR Cascading Explained with Examples

Jul 18, 2022
OKR Cascading Explained with Examples

OKR cascading with examples

When it comes to setting goals, the cascading OKR model is a great way to ensure that everyone in your organization is working towards the same overall objectives. In this model, the key results from the top level flow down to become the objectives of the level below. This ensures that all teams and employees are aligned with the company’s overall goals.

What is OKR Cascading?

OKR cascading is the process of setting objectives and key results at each level of an organization, from the top down. The goal is to ensure that everyone in the organization is working towards the same objectives and that each level of the organization has a clear understanding of its role in achieving those objectives. The cascading process begins with the top leadership team setting the overall objectives for the organization. These objectives are then shared with the next level of leaders, who develop their own objectives and key results that align with the organizational objectives. This process continues until all levels of the organization have their own objectives and key results. The benefits of OKR cascading include increased clarity and focus, improved communication, and greater alignment between different levels of the organization. When done correctly, it can help to drive significant improvements in organizational performance.

When cascading your OKRs, it’s important to remember that each level should have its own specific objectives that contribute to the key results of the level above. For example, if your company’s overall goal is to increase sales by 20% over the next quarter, then each team’s objectives should be focused on activities that will help drive sales. By aligning all levels of your organization in this way, you can ensure that everyone is working towards the same goal and that progress is being made.

If you’re not sure how to get started with cascading your OKRs, there are a few examples below that may help.

Examples of OKR Cascading

Example 1:

Company Goal: Increase sales by 20% over the next quarter

Key Result 1: The sales team increases their close rate by 2%

Objective 1: The sales team researches new leads and works on building relationships with them

Objective 2: The sales team develops new strategies for closing deals

Objective 3: The sales team provides weekly reports on their progress to management

Key Result 2: The marketing team generates 10% more traffic to the website

Objective 1: The marketing team creates new blog posts and promotes them across social media

Objective 2: The marketing team develops a new ad campaign that targets potential customers

Objective 3: The marketing team provides weekly reports on their progress to management

As you can see, each level has its own objectives that contribute to the key results of the level above. By cascading your OKRs in this way, you can ensure that everyone in your organization is working towards the same goal and that progress is being made.

Example 2:

Company Goal: Expand into new markets

Key Result 1: Research new markets and develop entry strategies

Objective 1: Research 10 potential markets and identify the most promising ones

Objective 2: Develop entry strategies for the 3 most promising markets

Objective 3: Present the market research and entry strategies to management

Key Result 2: Launch a new product in the chosen market

Objective 1: Develop a marketing plan for the new product launch

Objective 2: execute the marketing plan and track results

Objective 3: Evaluate the results of the launch and make adjustments as needed

Launching a new product in a new market can be a challenging task, but by cascading your OKRs from the top down, you can ensure that everyone is aligned and working towards the same goal.

Example 3:

Company Goal: Increase customer satisfaction by 10%

Key Result 1: The support team reduces the average resolution time for customer issues by 15%

Objective 1: The support team develops new procedures for handling customer issues

Objective 2: The support team implements the new procedures and tracks the results

Objective 3: The support team provides weekly reports on their progress to management

Key Result 2: The sales team increases the number of upsells and cross-sells by 5%

Objective 1: The sales team develops new strategies for upselling and cross-selling

Objective 2: The sales team implements the new strategies and tracks the results

Objective 3: The sales team provides weekly reports on their progress to management

Benefits of OKR Cascading

Cascading OKRs have a number of benefits that can help organizations achieve their goals. They can provide clarity and focus by setting priorities and aligning initiatives with the company’s overall strategy. Additionally, cascading OKRs can help to improve communication and accountability by holding individuals and teams accountable for specific results. Finally, cascading OKRs can help to increase motivation by linking individual and team performance to the organization’s overall success. When used effectively, cascading OKRs can be a powerful tool for enhancing organizational performance.

Cascading your OKRs is a great way to ensure that everyone in your organization is working towards the same goal. By starting with company-wide goals and cascading them down to departmental and individual goals, you can ensure that everyone is aligned and working together to achieve success.

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