Cascading
Cascading is the structured process of translating higher-level OKRs into team and individual OKRs. It ensures strategic goals flow through all levels of the organization while teams retain the autonomy to define their own contributions.
What is OKR Cascading?
Cascading describes the process through which company OKRs are broken down to team and individual levels. The term comes from the image of a waterfall (cascade), where water flows from top to bottom – similarly, strategic goals flow through the organization.
How Cascading Works in Practice
The typical cascading process follows a clear pattern: A Key Result from the level above becomes the Objective of the level below.
Example:
- Company Objective: Become market leader in Europa
- Company Key Result: Increase customer base from 200 to 500
This Key Result cascades to:
- Sales Team Objective: Accelerate customer acquisition in Europe
- Marketing Team Objective: Build a high-converting lead pipeline
- Product Team Objective: Create a compelling onboarding experience for European customers
Cascading doesn't mean leadership dictates WHAT teams must do. Teams define themselves HOW they contribute to company goals.
Cascading vs. Alignment
| Aspect | Cascading | Alignment |
|---|---|---|
| Direction | Vertical (top to bottom) | Vertical and horizontal |
| Focus | Deriving goals | Coordinating goals |
| Mechanism | KR becomes Objective | Making connections visible |
| Visualization | Tree structure | Strategy Map |
Common Cascading Mistakes
- Purely top-down: When teams have no creative freedom, buy-in drops
- Too many levels: More than 3 cascading levels create complexity without value
- 1:1 copy: A company KR should not be simply copied, but translated for the team context
- Missing feedback loop: The bottom-up perspective of teams must flow into company OKRs
Best Practices for Successful Cascading
Start with company OKRs and give teams 1–2 weeks to derive their own OKRs. Use shared planning sessions for horizontal coordination. The OKR Champion moderates the cascading process and ensures quality. Northly's Strategy Map visualization makes cascading connections visible at a glance and identifies gaps automatically.
Related Terms
Alignment
Alignment in the OKR context means that team and individual Objectives are connected to and coordinated with the company's strategic goals. It creates a clear line of sight from company vision to every individual's daily work.
OKR (Objectives and Key Results)
OKR stands for Objectives and Key Results – an agile goal-setting framework that helps organizations define ambitious goals and track measurable outcomes. Developed in the 1970s at Intel by Andy Grove and later popularized worldwide by Google.
Objective
An Objective is a qualitative, inspirational goal within the OKR framework. It describes what an organization or team wants to achieve in a given time period and serves as the north star for all stakeholders.
Frequently Asked Questions
What does cascading mean in OKRs?
Cascading is the process where higher-level company OKRs are translated into team OKRs. Typically, a Key Result from the upper level becomes the Objective of the level below.
How many cascading levels should there be?
Maximum 3 levels: company, team, and optionally individual. More levels create unnecessary complexity and slow down the planning process.
Should cascading be purely top-down?
No. Successful cascading combines top-down (strategic direction) with bottom-up (teams define their contribution). Purely top-down OKRs lead to low buy-in and lack of innovation.
What is the difference between cascading and alignment?
Cascading is the vertical mechanism (deriving goals from top to bottom), alignment is the broader concept that also includes horizontal coordination between teams.