Top-down OKRs, often referred to as "cascading" OKRs, are a hierarchical approach where overarching company Objectives are translated into increasingly specific Objectives for departments, teams, and sometimes even individuals. This method ensures that all work at lower levels directly supports the higher-level strategic goals.
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The flow typically looks like this:

Company Objective & KRs
↓
Department Objective & KRs (supporting the Company's KRs)
↓
Team Objective & KRs (supporting the Department's KRs)
↓
Individual Objective & KRs (supporting the Team's KRs)
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This cascading approach is particularly effective for large organizations or when there's a strong need to ensure that specific strategic initiatives are driven throughout the entire structure. It provides clarity from the top, ensuring that every layer of the organization understands its role in achieving the grand vision.
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Principles of Cascading OKRs from Company to Team/Individual

For top-down cascading to be effective, it's crucial to follow certain principles:

1. Start with the "Why": The company's OKRs must be clearly defined and widely communicated before departmental or team OKRs are set. Everyone needs to understand the overarching strategic direction.
   
   
2. Translate, Don't Copy: Lower-level OKRs should contribute to the higher-level Key Results, not simply copy the higher-level Objectives. A department's Objective will describe its unique contribution, and its Key Results will measure that specific contribution.
   
   
3. Meaningful Contribution: Each cascaded Objective should directly impact one or more Key Results of the level above it. If a team's OKR doesn't clearly support a higher-level KR, it should be re-evaluated.
   
   
4. Autonomy within Alignment: While guided by higher-level goals, teams should still have autonomy in how they achieve their cascaded Objectives. They are the experts in their domain and should be empowered to determine the best path forward.
   
   
5. Bi-directional Communication: While the direction is top-down, there must be a feedback loop. Teams should be able to voice concerns, provide insights on feasibility, and suggest alternative approaches that might better achieve the higher-level goals. This turns a rigid cascade into a more dynamic conversation.
   
   
6. Fewer is Better: Avoid over-cascading. Just like overall OKRs, limit the number of cascaded Objectives to maintain focus. Not every single company KR needs a direct 1:1 departmental OKR. Focus on the most critical contributions.

Example Flow:

• Company Objective: "Become the market leader in customer satisfaction for enterprise SaaS."
  
  • Company KR: "Achieve a Net Promoter Score (NPS) of 60+."
    
    
• Product Department Objective: "Deliver a truly intuitive and delightful user experience that sets a new industry benchmark.
  
  • Product KR (contributes to Company NPS): "Increase product usability score (SUS) from 70 to 85."
  • Product KR (contributes to Company NPS): "Reduce critical bug reports related to UX by 75%."
    
    
• UX Design Team Objective: "Refine our product's core workflows to ensure seamless user adoption."
  
  • UX Design KR (contributes to Product SUS): "Reduce clicks for core workflow 'X' by 30%."
  • ‍UX Design KR (contributes to Product SUS): "Achieve 90% completion rate for new users in critical onboarding path."