What is OGSM and why is it important for SMEs?

OGSM stands for Objectives, Goals, Strategies and Measures. It is a powerful strategic planning tool that more and more SMEs are discovering as the key to targeted growth. We understand that running an SME can often be overwhelming, with countless balls in the air and limited resources. OGSM provides a clear structure to navigate through complexity and bring focus to your business development.

For SMEs, OGSM is invaluable because it helps to efficiently allocate often scarce resources. It forces you to make sharp choices and set priorities. As a result, you can direct your energy towards activities that truly contribute to your growth objectives. OGSM ensures that everyone in your organization is aligned and understands where the company is headed. This creates focus and alignment, which is crucial for the success of smaller enterprises.

The four pillars of OGSM explained

Let’s take a closer look at the four pillars of OGSM:

• Objective: This is your overarching vision or ambition for the next 3-5 years. What do you want to achieve as a company?

• Goals: These are the concrete, measurable targets that indicate when you have reached your objective.

• Strategies: The ways in which you plan to achieve your objective. The synergy between the strategic pillars helps with this.

• Measures: The KPIs that you use to measure the progress of your strategies and the actions you will take.

We understand that defining these elements can sometimes be a challenge for SME owners. After all, you are busy with daily operations. Yet, it is crucial to take time for this. By clearly articulating these pillars, you create a compass for your business. It provides direction for decisions at all levels and ensures that everyone understands how their work contributes to the bigger picture. This leads to greater engagement and motivation within your team.

How OGSM helps in setting clear goals

One of the biggest challenges for SME entrepreneurs is setting concrete, achievable goals. Often, ambitions remain vague or too ambitious. OGSM forces you to make your objectives SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. This may sound challenging, but it is a liberating experience. By setting clear goals, you know exactly what you are working towards and can measure your progress.

OGSM also helps you find the right balance between ambition and realism. It encourages you to think big when formulating your objectives, but also forces you to consider the concrete steps needed to get there. This prevents you from getting lost in daydreams or getting stuck in short-term thinking. By regularly measuring your progress against the defined measures, you can also adjust timely if necessary. This keeps you flexible and responsive, which is crucial in the dynamic world of SMEs.

Implementing strategies with OGSM for SME growth

Implementing strategies is often where SMEs struggle. You might have a great plan, but how do you turn that into action? OGSM provides a practical framework for this. By directly linking your strategies to concrete goals and measurable results, it becomes much easier to translate them into daily activities. It helps you set priorities and allocate resources effectively.

A significant advantage of OGSM is that it helps create alignment within your organization. By clearly communicating the strategy, everyone understands how their work contributes to the larger goals. This leads to greater engagement and ownership. Moreover, OGSM allows for quick adjustments if circumstances change. By regularly evaluating your measures, you can immediately see if your strategies are having the desired effect. This enables you to respond flexibly to opportunities and threats, which is essential for growth in SMEs.

Practical tips for applying OGSM in your business

We understand that implementing a new methodology like OGSM can be challenging for SME entrepreneurs. Therefore, here are some practical tips to get started:

1. Start small: Begin with one department or project to test OGSM.

2. Involve your team: Organize a workshop to collaboratively fill out the OGSM.

3. Make it visual: Create a clear OGSM canvas that you hang in your office.

4. Plan regular reviews: Evaluate your progress monthly or quarterly.

5. Be flexible: Adjust your OGSM as circumstances change.

It is important to be patient and to view OGSM as a learning process. Perfection is not the goal; improvement is. By consistently applying OGSM, you will find that it feels more natural and delivers more value for your business. Remember that every step towards a more structured approach is already a win for your business. Keep experimenting and refining until you find an approach that perfectly fits your unique situation. Want to start with OGSM? Click here for our templates.