Objectives and Key Results, that is the OKR strategy and goal execution framework (read our introduction here) isn't just one thing.
OKRs can operate on multiple levels, depending on your needs and strategic goals.
What most people think of, when they think OKRs, are strategic OKRs, that is OKRs that are set on organizational level by management.
Tactical/operational OKRs are set on a team level. Tactical objectives always tie into the bigger picture of the strategic objective.
Some people also like to create individual OKRs, that is OKRs for just a single team member. While it may be beneficial for a person to structure their work like this, it can be complex to tie the OKRs together on the various levels and shift focus away from the alignment aspect of OKRs.
Cascading OKRs is a process where organizational objectives and key results (OKRs) are aligned and distributed throughout the various levels of the organization.
It’s a way of creating alignment while still ensuring that people are working within their context and responsibibilities.
There are two ways of approaching the process of cascading OKRs.
This approach ensures that every team and individual in the company is working toward the same high-level goals while adapting them to their specific context and responsibilities. The aim is to create alignment from the top down (or bottom up) so that each team’s OKRs contribute to the broader company-wide objectives.
Step 1: The organization sets a high-level strategic OKR at the strategic level.
Step 2: Departments or teams then create their own OKRs based on how they can contribute to the organizational objectives. These OKRs should reflect the specific responsibilities and tasks of each department.
Step 3: Individuals within each department create their personal OKRs based on their team's objectives, if this makes sense for them.
Example:
Company OKR: "Increase global market share by 10%."
Marketing OKR: "Generate 30% more leads in new markets."
Sales OKR: "Close 20% more deals in international markets."
Engineering OKR: "Develop and launch two new features that target international customers."
In the bottom-up approach, teams or departments each define their own OKRs. These are then cascaded up to a create company wide objective.
Bottom-up allows for more input from teams, providing an opportunity to impact the organizational strategy based on insights and the unique perspectives of the different departments. The danger is that this can sometimes be difficult to unify, but this is where the organizational strategy becomes vital again: the direction has been set already.
Whether you do it up or down, there are multiple reasons for cascading OKRs across the different levels.
Cascading OKRs can be a powerful tool to align the entire organization, avoiding silos and ensuring that everyone is working toward common goals.
When done right, OKRs are a powerful tool that can create alignment and transparency in the organization. In large organizations, I always recommend keeping track of it in a dedicated OKR tool so you can define objectives and key results, assign ownership, and track progress on multiple levels. It’s all about staying on top of what your goals are, ensuring regular check-ins, and making it easier to achieve goals because people are motivated and excited by what they can achieve.
