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The Cascade of Planning starts with the plan for the entire organization. This is often created for 5 years or more.
The plan will have a vision, mission, values, measures and core strategies for the entire organization.
Think of this as the blueprint for the organization.
Just like in building a house, each department reviews the whole plan and carves out their responsibilities. Creating a business plan for their area. This plan shows the contributions they'll make to the org's measures and objectives.
The business unit plan is linked to the org's plan through the same core strategies and values.
If the business plan is for more than one year, then an annual slice is created called the annual plan.
The annual plan like the detailed blueprints for a specific room in the house.
Each person looks at the annual plan and creates their individual performance plan showing the results and behaviors they will strive for during the year.
Consider this the detailed action plans that each person will do to help build the room.
The Cascade of Planning is like a waterfall. The planning starts at the top and flows down to each department and person in the organization.