Vertical
This method of cascading goals involves translating strategies from a higher level to lower levels. The leader plays a key role, overseeing the goal-setting process and identifying the actions that individual teams must take to achieve the overarching goal. An example is dividing a corporate strategy into detailed strategies for individual departments. Goals achieved at lower levels then flow back to the higher-level strategy, supporting its full implementation.
Horizontal
This cascading method involves distributing the business strategy across various functions that work together. Objectives are broken down into specific tasks assigned to employees, who then work collaboratively to achieve them. In this structure, employees have the freedom to make decisions based on general organizational guidelines. This cascading method works best when the goal is to foster creativity and innovation among employees. It facilitates teamwork because operational decisions are made directly by the individuals carrying out the tasks.
Direct
The direct method of cascading goals involves all members of the organization focusing on achieving the same overarching goal. For example, if the main sales goal is “increase revenue by 70%,” it is broken down into specific sales goals for individual departments. Each team is given a clearly defined task, such as “increase revenue by X%.”
Indirect
The indirect method of cascading goals involves different teams pursuing a key strategic goal using their own specific approaches and actions. For example, if the overarching goal is to improve customer satisfaction by 15%, achieving it requires the involvement of all departments, such as sales, logistics, and quality control. No single department can achieve this goal on its own—collaboration and coordinated efforts across the entire organization are necessary.
How to cascade goals with your team using the vertical method?
The Management Board, CEO, etc., announce the overall goal for the entire organization and the goals for individual departments, which are communicated to the company.
Example:
By 2025, the company will become the leading electric car retailer in Poland.
- Our company’s cars account for 70% of all electric car sales in Poland.
- 90% of the company’s customers are satisfied with sales and customer support services.
- Brand visibility in the domestic market increases by 50%.
Confirm with your team that the goal(s) are known and understood. If they are not, remind them and discuss their understanding of the announced goals. If necessary, explain how these goals will contribute to the organization’s success and why they are needed.
Department managers develop goals that will lead to the achievement of the main goals.
Example:
- We will hire three new salespeople for the sales team and onboard them in Q1.
- We will train all salespeople in selling our company’s new car models.
- The sales team will acquire at least 100 new customers each quarter.
Confirm with your team that the goal(s) communicated by the department manager are also known and understood. Confirm understanding. Ask: What other ideas do you have for department goals that will bring us closer to achieving the company’s main goals? Write down your ideas and ensure that your manager receives this information and takes them into account when analyzing and reviewing the goals.
Have your team develop a goal(s) that will lead to achieving departmental and company goals.
Organize a brainstorming session to select one or a maximum of three team goals. Discuss the goals with your boss and confirm that they are acceptable in this format. Remember that the goals should be “SMART,” and above all, “measurable,” time-bound, and valuable to the team.
Develop individual goals with each team member.
In one-on-one meetings with team members, develop one goal that will help achieve the team’s goal and one related goal that will foster development for that individual. Ideally, you should develop one goal that meets both of these requirements.
Disclose the individual goals to the team so that everyone knows how they will contribute to achieving the team, department, and company goals.
Monitor goal achievement regularly and support team members in achieving them.
