The OGSM model (Objectives, Goals, Strategies, Measures) is a powerful tool for organizations to achieve their strategic goals. This model not only provides a structured approach for long-term planning, but is also excellent for annual planning. In this blog, we explain how you can effectively use OGSM to formulate and achieve your annual goals. We will also discuss the benefits of splitting Measures into a dashboard and an action plan.

OGSM as Annual Plan

The OGSM model is an acronym for the four components that form the core of this strategic planning tool: Objectives, Goals, Strategies, and Measures. These elements help organizations develop clear guidelines and chart a clear path to success. Using OGSM as an annual plan provides a systematic approach to achieve consistent progress year after year.

Objectives: Providing Direction

The starting point of OGSM is the Objective, the overarching ambition that the organization aims to achieve. For an annual plan, it is important that this ambition is clear and inspiring. The Objective should not only provide the overall direction, but also motivate the entire team. Using the 'Goal-by-Doing' method helps by defining not only the goal, but also how it will be achieved. For example:

• Goal: "We aim to become a market leader in sustainable energy solutions."

• Doing: "Through innovation and customer-focused solutions."

This ensures that the Objective describes not only an end goal, but also the strategy to get there.

Goals: Determining Specific Results

The Goals are the specific, measurable results needed to achieve the Objective. They must be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. For an annual plan, it is essential to set realistic goals that can be achieved within the year. For example:

• "Increase our market penetration by 15% in the coming year."

• "Achieve a customer satisfaction score of 90%."

These goals provide a concrete focus for the team and help measure progress.

Strategies: The Path to Success

The Strategies describe the ways and methods the organization will use to achieve the set goals. This includes the important choices and actions needed to realize the ambitions. For an annual plan, strategies may be focused on specific projects or initiatives that can be completed within the year. For example:

• "Development of a new product range focused on sustainable energy."

• "Expansion of marketing efforts into new geographical markets."

Strategies help align daily activities with the broader objectives of the organization.

Measures: Tracking Progress and Defining Actions

The Measures in the OGSM model are split into two parts: a dashboard and an action plan.

Dashboard

The dashboard contains the indicators and KPIs (Key Performance Indicators) used to measure the progress of the strategies. This can range from quantitative metrics such as revenue figures and market share to qualitative evaluations such as customer satisfaction. Examples of KPIs for an annual plan could include:

• "Monthly revenue growth of 5%."

• "Reduction of operating costs by 10%."

Action Plan

The action plan contains the specific actions and initiatives that need to be carried out to achieve the strategies. This part of the OGSM model is where the 'Doing' component of the 'Goal-by-Doing' method truly comes to life. Actions could include:

• "Launch campaign for the new product range."

• "Training for sales teams to enter new markets."

The action plan ensures that all team members know what is expected of them and how their work contributes to the broader objectives.

Conclusion

The OGSM model is an excellent tool for organizations to structure and execute their annual plan. By establishing clear objectives, measurable goals, targeted strategies, and a well-defined action plan, organizations can effectively realize their annual plan. Whether you are a large company or a startup, OGSM provides a structured approach that ensures clear direction and focus. Looking for an OGSM template? Click here.

Want to learn more about how to apply OGSM as an annual plan? Contact OGSM.com and discover how we can guide you to a successful year!