What is the risk of only using cascading to align OKRs?

Relying solely on cascading OKRs can lead to a lack of genuine alignment and understanding across different levels of an organization. This approach may result in disconnected objectives that don't truly contribute to the overall company goals.

What is the difference between cascading and aligning OKRs?

Cascading involves breaking down high-level objectives into smaller, related ones throughout the organization. Aligning OKRs, on the other hand, refers to ensuring that these objectives are interconnected and contribute cohesively to the overarching mission.

What are the benefits of cascading OKRs?

Cascading OKRs promotes a clear hierarchy of goals and enhances focus by connecting individual efforts to larger organizational targets. It encourages collaboration, accountability, and a more structured approach to achieving company-wide aspirations.

What do cascading OKRs mean?

Cascading OKRs refers to the process of translating and breaking down high-level objectives (such as those of the company) into actionable and relevant objectives at lower levels (like teams or individuals), ensuring alignment and coordinated efforts throughout the organization.

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Cascading vs. Aligning OKRs – Which is Better?

Objective and Key Results
August 14, 2023

In the era of digitalization and AI, organizations both large and small, are constantly seeking ways to maximize productivity, improve performance, and achieve their desired outcomes.

Two popular approaches that have emerged for goal-setting and alignment are Cascading OKRs and Aligning OKRs. These methodologies offer distinct perspectives on how companies can drive performance, but which path should your organization take? Should they cascade OKRs or focus on aligning goals across the company?

Let’s delve into both approaches to better understand the benefits and challenges of each.

What Are Cascading OKRs?

Cascading OKRs is a strategic framework used by organizations to align and coordinate goals across different levels and departments within the organization.

It involves breaking down high-level objectives which are set by the top management into more specific objectives and key results that can be tracked at various levels of the organization. This ensures that everyone is working towards a common vision and that their efforts are synchronized to achieve overall company goals.

What Are Aligning OKRs?

Aligning OKRs refers to the process of ensuring that the goals and metrics set within an organization are interconnected and supportive of each other. The goal of aligning OKRs is to produce a transparent and integrated structure of goals that cascades down from the organizational level to the team and individual levels. Because of this alignment, everyone is guaranteed to be working towards the same aims and to make a positive impact on the larger organizational objectives.

How Cascading OKRs Looks Like

CEO’s OKRs

Objective: Grow annual revenue to increase the valuation

KR 1: Grow ARR by 35%
KR 2: Expand business in the NA

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Head of Sales

Objective: Grow ARR by 35%

KR 1: Increase revenue from expansion by 15%
KR 2: Increase revenue from new and old deals by 30%

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Regional sales head

Objective: Increase revenue from expansion by 10%

KR 1: Successfully onboard and train new NA sales team
KR 2: Collaborate with marketing to generate leads in the NA Market

The above OKRs give us a prime example of How OKRs Cascade. The top-level Management (CEO) sets their OKRs, and then it is cascaded by the department head and then to the individuals. This ensures that everyone is working towards the same vision and goal.

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