In my first article on relevant metrics and key performance indicators (KPIs), I explained why limiting management’s strategic planning to high-level goal setting is doomed to failure. For strategic goals to be realized, they have to be translated into daily KPIs that are meaningful to everyone in the company. At my company, we approach this goal deployment process in three parts.

1. Cascade from the top, plan from the bottom

Goals always start at the top with companywide annual objectives. But when it comes time for deployment, business leaders must think from the bottom up about how the organization as a whole is going to meet those goals. Take a five-percent corporate cost reduction target as an example. Management’s first task is to break that five-percent figure down into specific tactics and actions throughout the company to achieve the target at the front end of the business.

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