In business, strategy isn’t enough – harmony of efforts is key. OKRs transform dreams into reality, guiding teams with clear roadmaps.
Enter the 50/50 approach: Balancing top-level guidance with bottom-up creativity – it’s more than just strategy. It’s about feeling empowered and achieving big wins. This article takes a closer look at the world of OKRs, breaking down the ideas of cascading, laddering, and the 50/50 approach.
Cascading in OKRs involves transforming Key Results (KRs) from a higher-level objective into new Objectives for the level below. This helps keep everyone on the same page as each layer contributes to achieving broader company goals.
For instance, if an executive-level objective is to “Increase Market Share,” a corresponding Key Result might be “Achieve 15% Growth in Customer Acquisition.” This KR can cascade down to the marketing team, becoming their new Objective, like “Implement Targeted Marketing Campaigns to Achieve 15% Growth in Customer Acquisition.”
This iterative process ensures a clear and focused alignment of goals from the top to the bottom of the organization.
Laddering in OKRs refers to translating bottom-up initiatives into higher-level objectives. It’s about taking the efforts and insights of teams and individuals and using them to help achieve broader organizational goals.
For example, a team might have an initiative to “Improve User Onboarding Experience.” This initiative can ladder up to a company-wide objective, such as “Enhance Customer Satisfaction by Optimizing User Onboarding.”
Laddering empowers teams to impact higher-level strategies and ensures that everyone’s efforts fit into the company’s mission.
The 50/50 Approach
In today’s business arena, where agility is as vital as strategy, the 50/50 approach emerges as a guiding principle. It acknowledges that while strategy sets the direction, every individual’s or collective energy, passion, and brilliance pave the road to success. Cascading and laddering synergize to create a smooth flow between top-level objectives and ground-breaking innovation.
This approach isn’t just about achieving objectives; it’s about fostering a culture of collaboration, empowerment, and ownership. It’s a declaration that every team member, from the higher-ups to the newest members, plays a part in shaping the company’s future vision. As the business world evolves, the 50/50 approach will help you and your team stay on top of your OKRs.