Cascading goals ensure alignment of efforts at every level of an organization. Instead of pursuing different objectives that lead to mixed results, teams drive toward shared goals that further their company’s mission and vision. As an organization, you’ll achieve more impressive outcomes by cultivating a laser focus on big-picture goals.
In this article, we’ll explore what setting cascading goals entails. Along the way, we’ll discuss key benefits, how to avoid pitfalls, and tools that can aid in your efforts.
Table of Contents
- What Are Cascading Goals?
- The Top 5 Benefits of Implementing Cascading Goals
- How to Set Up Cascading Goals in Your Organization
- Avoiding the Pitfalls of Cascading Goals
- Examples of Cascading Goals in Real-Life Organizations
- Best Tools for Implementing and Tracking Cascading Goals
What Are Cascading Goals?
Cascading goals create a framework for the alignment of priorities at all levels of the organization. This method of goal-setting gained popularity in the early 2000s, as Angelo DeNisi, Arup Varma, and Pawan S. Budhwar say in Performance Management Systems.
How does it work? After business leaders set top-level goals, teams at the next level of the organizational hierarchy set goals supporting these objectives. Then, those at the subsequent level do the same. Through this alignment, the goals of each team directly support the big-picture goals of the company.
The Top 5 Benefits of Implementing Cascading Goals
Setting cascading goals brings numerous benefits. We’ll review the most central ones here.
- Aligning Organizational Efforts
Cascading goals allow organizations to use their collective energy and talent in the most efficient way possible. Without aligned goals, much effort can be squandered on pursuits that don’t support top-level objectives. Moreover, organizations with aligned goals can outcompete those with less focus, achieving leadership in their field.
- Bolstering Transparency and Accountability at Every Level
With clear shared targets, it will quickly become apparent if someone isn’t carrying their weight. Hence, a cascading goals framework bolsters accountability. Teams and individuals must regularly report back to those who depend on their efforts. During weekly (or even daily) team check-ins, each individual can share updates on their work. If they aren’t on track to reach KPIs, they can work with their manager to overcome any hurdles they face.
- Improving Team Collaboration, Performance, and Engagement
Cascading goals foster a stronger sense of purpose by connecting each individual’s goals to the big picture. These meaningful goals greatly enhance employee engagement and morale. People come to work with a deeper sense of commitment and purpose, understanding how their daily work helps fulfill an important mission.
In turn, teams operate with more enthusiasm, energy, and creativity. Group collaborations become more dynamic and innovative. Performance grows stronger as a result, leading teams to achieve more ambitious accomplishments.
- Improving Performance Tracking
With clear goals, performance tracking becomes far more accurate. You can review progress toward KPIs and objectives on a daily basis, which can illuminate any issues to address. Managers can then share more helpful, on-the-mark feedback with direct reports.
- Bringing Flexibility and Adaptability
Having a set of cascading goals provides clear direction for teams at every level. When external conditions shift or organizations achieve their goals, they can easily pivot toward new ones. Each team and individual can modify their goals by referring to those set by the team above them in the hierarchy.
How to Set Up Cascading Goals in Your Organization
Follow these steps to formulate a strong set of cascading goals for your business.
Set Well-Aligned SMART Goals at Every Level
Establish Clear Organizational Objectives
Company leaders should review their strategic plan and key priorities to set 3–5 top goals. During this step, they should outline a set of SMART goals that are strategic, measurable, achievable, relevant, and time-bound. This means stating clear metrics for success—key performance indicators, or KPIs—and time targets.
Create Departmental and Team Goals
To set department-level or team goals and KPIs, discuss potential goals as a group. This will build investment in achieving them, while taking advantage of team members’ insights on how to leverage their talents to support company goals. Begin by discussing the organization’s strategic goals, and then brainstorm ideas.
Set Individual Goals
Managers should work with employees to craft their personal goals. In one-on-ones, they can discuss how direct reports can deploy their most crucial strengths to meet team goals. Then, they can create individual metrics for success, clearly defining what goal achievement looks like.
For example, say the company sets an overarching goal of increasing customer satisfaction with information provided on the website. Launching a new web portal might then make a good department-level goal, as the Balanced Scorecard Institute says. And at the team and individual level, goals could centre on excellent content development and design.
Monitor and Adjust Goals Regularly
Track goals continuously, using quality performance management tools. Evaluate goal status and whether you’ve begun to meet any KPIs. You can then provide teams and individuals with any necessary training or guidance to support their progress. Or, you can modify goals in response to changing conditions, like emerging market opportunities.
Encourage Communication and Collaboration
Managers, teams, and individuals across levels should discuss their goals to ensure mutual understanding and clarity. This will also strengthen relationships and trust, which will further enhance goal achievement. You could also designate an HR manager to serve as a central point of contact for questions about goal alignment. Urge people to reach out to discuss any points of confusion, and thank them for doing so!
Avoiding the Pitfalls of Cascading Goals
Let’s discuss some common challenges with cascading goals. Along the way, we’ll explore practical tips for overcoming them.
Misalignment Between Departments
Different interpretations of organizational goals could lead to misalignment—and cascading goals effectively takes skill and practice. “As goals are cascaded down, they often become disconnected from higher-level goals, like the game of telephone, in which retelling a story can alter it in ways not intended,” say DeNisi and coauthors.
To translate organizational priorities into team- and individual-level goals, managers need a high level of familiarity with company and department strategy as well as direct reports’ capabilities and contributions. Leaders of different departments should have conversations with top-level leaders to ensure mutual understanding. Then, department directors and managers can translate high-level goals into department and team priorities.
Lack of Clarity in Goal-Setting
Vague top-level goals can also introduce confusion into the process. Ask yourself if business-level goals feel actionable. If not, put them into more concrete language, making sure all goals are SMART goals. Also review KPIs at each level to make sure they’re action-oriented.
Failing to Regularly Review and Adjust Goals
In today’s agile business environment, adjusting goals routinely is crucial. On a weekly basis, managers and teams should review their goals to make sure they’re still relevant. As they approach the next quarter, leaders should always consider how strategic goals may need to change. Then, they can adjust goals as needed to match changing conditions and opportunities.
Examples of Cascading Goals in Real-Life Organizations
Cascading goals drive positive outcomes across numerous contexts. To fully conceptualize their benefits, let’s consider how they positively shape healthcare settings. In such contexts, goal alignment is vital to ensuring patient wellness—it’s no exaggeration to say that lives are at stake. For example, goal alignment can aid in implementing protocols in hospitals that lower infection rates, while also enhancing employee engagement.
Cascading goals bring similar benefits to companies in any industry. Take the example of Swagelok Southeast Texas, an auto parts distributor that leveraged cascading goals to reset its strategic priorities. Realizing they needed to substantially increase their quoting speed, they paused many of their other initiatives to focus on that goal. At every level, they worked to address customers’ most critical pain point: the length of time they had to wait for a quote.
“We really made rapid quoting the centerpiece of our strategy implementation,” says their president, Chris Jones, in Harvard Business Review. “Today, we have decreased average quoting time from 18 hours down to five hours, and more than 95% of our customers are satisfied with quoting time.” Alignment between leadership, teams, and employees around one central goal made this possible.
Other examples abound. Look at any company with exceptional strategic implementation, and you can be certain that its teams have well-aligned goals.
Best Tools for Implementing and Tracking Cascading Goals
Using goal-tracking software will help ensure alignment at all levels. With the best programs, you can set and compare goals and OKRs using an intuitive interface. These strategic maps let you easily visualize how goals align. Let’s examine several software solutions that facilitate strong goal tracking.
Asana
Asana, a project management platform, provides real-time updates on progress toward goals. Using Asana, you can connect goals to projects that support them, boosting motivation. You can also create sub-goals and timelines for their fulfillment. The program provides clear visuals in an intuitive user interface, allowing you to easily conceptualize goal status.
Microsoft Viva Goals (Previously Ally)
This software supports achievement of business goals, with a focus on team alignment. It allows you to set OKRs and track progress every step of the way, leveraging guidance from AI insights. You can assign a score to completed OKRs, which will be stored in the program for your reference.
Primalogik
If you’re looking for a purpose-built system that allows you to track goals, rate them, and integrate them into your performance reviews, Primalogik is the tool for you. Using this robust performance management software, you can set goals and OKRs for both individuals and teams, then break them into smaller action steps. This suite of tools will support you in discussing goal achievement in performance reviews, highlighting current goal status and results. Plus, it lets you gather and analyze 360 feedback on progress toward goals, while also providing in-depth analysis of patterns and results.
With well-developed cascading goals, your organization can reach a new level of success. Clear, ambitious goals that support your central mission and vision will help you earn a place as a leader in your field. And each individual will reach their highest potential as they strive toward meaningful goals that align with top-level priorities.
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