2 Popular Approaches to Cascade Corporate Strategies

5 people looking at a business plan wondering how to cascade corporate strategies

Simple, Clear Strategies Work Best
Complex businesses like the one diagrammed on the board above require complex strategies, right? Wrong.  To effectively cascade corporate strategies throughout an organization, they must be easily understood, clearly stated, and embraced by all employees.

The Key for Leaders to Cascade Corporate Strategies
Our organizational alignment research found strategic clarity accounts for up to 31% of the difference between high and low performing organizations.  Without clear and compelling strategies, your chances of being able to execute the strategy successfully across the company dwindle rapidly.

If your goal is to motivate your team, improve and reward behavior, and boost overall performance, then the key to an effective strategy is one that outlines clear and compelling choices about where to play and what actions to take. Done right, a successful strategy sets an organization up to perform beyond just the sum of its parts because it creates crystal clear focus and alignment across all functions.

Two Popular Approaches to Cascade Corporate Strategies
To effectively cascade corporate strategies, you must effectively cascade corporate goals and objectives to create alignment between where the company is going and what people do on a day-to-day basis.  The two most common approaches we find are MBOs and OKRs.

1. MBOs
Since Peter Drucker first used the term “Management By Objectives” in 1954, the practice of using MBOs has gained traction and won advocates because it brings results. MBOs are about setting clear goals and performance standards that are aligned with corporate goals and monitored on a consistent basis. They give employees an understanding of their roles and what is expected of them so they can see how their activities relate to the achievement of the goals of the organization.

Done well, MBOs:

  • force the clarification and prioritization of objectives
  • increase communication and transparency
  • clarify roles and responsibilities
  • foster commitment

Done poorly, MBOs increase administration and take time away from getting the “real work” done.

2. OKRs
OKR is an acronym for Objectives and Key Results. Similar to MBO, OKR is a system connecting strategy with execution on a company and team level. OKRs involve:

  • Identifying the critical few major Objectives that the company wants to achieve
  • Defining Key Results that, if achieved, will mean that you achieved the Objective. The Objectives are meant to be larger ideas than you want to achieve and do not necessarily have to be quantitative.

Often shared across the organization, OKRs aim to provide teams with visibility of company goals in order to align, coordinate and focus effort.

What Is the Difference?
Not much.  Both systems help managers cascade corporate strategies, set goals for their employees and monitor progress.  MBOs are usually longer in duration than OKRs. In terms of performance measurement, OKRs tend to produce quantitative metrics while MBOs most often measure both quantitatively and qualitatively.

What we care about most is not which acronym you choose, but that you do it right to help cascade corporate strategies across your organization.

The Bottom Line
To effectively cascade corporate strategies across your organization, leaders must ensure that the strategy is clear, believable and implementable enough.  With employees reporting that the corporate strategies are 50% less clear than their bosses, we cannot overemphasize the importance of strategic clarity.

Once you strategy is clear enough, select the best method for your unique situation to cascade and monitor corporate goals, objectives, success metrics and interdependencies to align and prioritize effort and resource allocation.  That’s what gets you to where you want to go.

To learn more about how to cascade corporate strategies across your organization, download 3 Big Mistakes to Avoid When Cascading Your Corporate Strategy

Comments are closed.

LSA helped to meet the needs of my teams within a very narrow timeframe. My team walked away with highly useful management tools and practices. LSA saved us time in delivering the right solution for our specific needs.

Sandeep Kumar
Director, Software Engineering, EPG

LSA’s customized Effective Presentation Skills program has helped me elevate my presentation skills to the next level. I now have a much greater self-awareness of my presentation skills and can leverage off of my strengths while working to improve upon other areas. I would definitely recommend this solution to anyone for whom business presentations are an integral part of their job.

Jim Elliott
Senior Marketing Manager

Samsung

We partnered with LSA Global to help us invest in our people in the areas of performance coaching, diversity, and inclusion. They focused on helping us succeed and were very flexible in meeting our specific needs. LSA Global exceeded my expectations from a speed, quality, and value standpoint. I would recommend LSA Global to anyone looking for a true business partner.

Anita Luckinbill
Director, Human Resources

We signed up with LSA early on–as their 22nd Member! Since then, our organization’s learning needs have increased and decreased and increased again with the changing times. The beauty of the LSA business model is its flexibility…when we needed to supplement our own internal resources, we used LSA services knowing that we could depend on the outstanding quality of the leadership development and management training programs they provide.

Margie Bunting
HR Manager

The refreshing thing about LSA is that they focus on understanding our business situation and helping me succeed instead of selling a product. With over 150 experts, they are an invaluable resource that helps me deliver higher quality results faster. I recommend them to anyone looking to improve the performance of their workforce.

Stacie Rodgers
VP of Human Resources

Cutera

I had been working with LSA for many years with my prior company. Currently, I’m with a company who hadn’t done much basic management skills training. After identifying and presenting a program recently, our managers are excited and talking in the halls about the great experience. LSA saves us time in delivering the right training for our needs.

Phyllis Moracco
HR Director

I am very impressed with the quality of work and talent. LSA did a great job of listening to my needs and providing the exact management training program expertise I needed to get the job done.

Don Pryor
Director, Business Planning & Analysis

We consider LSA Global our outsourced learning and development partner. We worked closely with LSA to customize a management development program to meet our growing business needs. I would highly recommend LSA to any company wanting to deliver quality learning solutions.

Terri Wright-Scheer
Vice President Human Resources

The Managing Virtual Teams program was extremely valuable. Your consultant/ facilitator’s fundamental knowledge of Synopsys as a company provided an incredible base to build upon while tackling the complications of managing and working with globally distributed teams. My team walked away walked away with highly useful practices and tools. It was an excellent use of our time.

Debra Martucci
Vice President, Information Technology

Avon’s success is dependent on strong relationships among our Customers, Representatives, Associates, and outside resources we hire to help us meet our business objectives. We were very pleased with the results from working with LSA Global to design and facilitate a custom program for our events management team. LSA demonstrated responsiveness, flexibility, and an innovative approach to working with us.

Deanna Rudnitsky
Senior Manager, HR Destiny Sales Region

LSA has become the gold standard in team building and management training at Genomic Health! I have a hard time finding facilitators that come close to their level of customization, expertise and experience.

Emily Couey
Director of Human Resources

LSA helped change our entire culture around meetings, making them more effective and efficient, thus enabling us to concentrate on driving more business.

Terry Wassman
VP of Human Resources

We consider LSA our true business partner in the areas of Learning and Organizational Development. From Strategic Planning to Presentation Skills and Management Training, they continue to provide excellent value and extremely high quality solutions – not just one time events. I recommend them to anyone looking to drive true business results.

Michelle A. Mitchell
Vice President, Worldwide Human Resources

LSA’s Employee Engagement Consulting and Survey work has provided critical visibility into: how well our people are holding up under the general economic environment, as well as, the specific challenges that face biotechnology companies in their efforts to discover and develop new medicines; their level of alignment and commitment to XOMA’s Vision and mission critical strategies; how leadership practices and management systems support an environment that engender commitment, and the specific actions that our leaders can take to improve on areas that are important to our people. I highly recommend LSA’s employee engagement solutions.

Chris Wells
Vice President, HR and IT

I highly recommend LSA Global to anyone who is looking to improve individual or organizational effectiveness through their top quality programs and broad range of expertise.

Greg Pappas
VP of Human Resources

Evaluate your Performance

Toolkits

Toolkits

Download key published insights and tools from industry experts highlighting best practices in the areas of talent, strategy and culture.

More

Health Checks

Health Checks

Want to know how you stack up against leading organizations?  Receive a complimentary benchmarking analysis courtesy of an LSA Expert.

More

Whitepapers

Whitepapers

Get up to speed on timely solutions critical to your business. Published by LSA Experts based upon client feedback and key industry trends.

More

Methodology

Methodologies

First we identify the key metrics you want to improve. Then we assemble a dedicated team of elite experts who have successfully solved similar problems with similar clients.

More

Blogs

Stay up to do date with the latest information on how we help high growth companies align their culture and talent with strategy.

More

Case Studies

Client Case Studies

Real world consulting and training approaches from LSA projects, providing insights on how your company can outperform the competition.

More