Understanding OGSM and OKRs: What’s the Real Difference?

Ever wondered what the secret recipe behind successful companies is? Let me tell you about two powerful ingredients: OGSM and OKRs. These are not just fancy acronyms; they are genuine game-changers in the world of strategic planning. But how do they really relate to each other?

OGSM, which stands for Objectives, Goals, Strategies, and Measures, is like a well-organized roadmap. It’s the kind of approach that makes you feel like you have everything under control. On the other hand, we have OKRs - Objectives and Key Results. Think of OKRs as your ambitious friend who always pushes you to reach for the stars. Both aim to get you where you want to be, but they take different routes to get there.

The Pros and Cons of OGSM: Is It Worth It?

Let’s roll up our sleeves and dive into OGSM. One of the biggest advantages? It’s like a crystal-clear telescope that shows you everything from your largest objectives down to the smallest actions. Pretty cool, right? And if you’re dealing with a complex, long-term project, OGSM might just become your new best friend.

However, developing an OGSM strategy isn’t always straightforward. It can be a time-consuming process that sometimes feels a bit restrictive, making you wonder: “Is there still room for creativity?” With so much information, it’s also a challenge to keep the essence sharply in focus—it often feels like searching for a needle in a haystack!

OKRs: The Good, the Bad, and the Ambitious

Let’s take a look at OKRs. If OGSM is your organized, structured approach, then OKRs are your more adventurous choice: focused on setting ambitious goals that challenge you to push yourself to the limit. This approach often fosters innovation and allows room for creative solutions. OKRs are also known for their flexibility, making them easy to adapt to changing circumstances and regular progress reviews.

But there’s a downside. Without focus or with too many OKRs, you risk losing your way—like trying to juggle during a marathon. Well-chosen OKRs help you stay sharp and focused.

Putting It into Practice: OGSM vs OKRs

Once you’ve made a choice, it’s important to consider how you’re going to implement it. OGSM often works like a waterfall model: a structured approach that begins with leadership and is rolled out through clear lines across the organization. This is thorough, but it also requires a clear investment of time.

OKRs, on the other hand, work more like a flexible step-by-step plan, where companies often start in one team or department before rolling it out more widely. Here, transparency is essential—regular check-ins and clear communication help keep everything and everyone aligned.

Measuring Success: Who Takes the Crown?

When it comes to measuring results, each framework has its strengths. OGSM provides the depth and structure for extensive, complex projects, making it particularly suitable for long-term, strategic initiatives. OKRs focus on short-term goals with clearly measurable outcomes, emphasizing progress rather than perfection. Many companies view achieving 70-80% of their OKRs as a success—the aim is to push boundaries, not to be flawless.

Success Stories from Practice: Who Uses What?

In practice, we see OGSM being used by companies like Procter & Gamble, who use it to keep their global strategy on track while remaining flexible in local markets. OKRs are popular among tech giants like Google and LinkedIn, which use them to maintain sharp focus and team alignment in a fast-changing environment.

Making the Choice: Which Is Right for You?

So, what suits your organization better? For long-term vision and detailed planning, OGSM is often the best choice, especially in sectors that don’t change rapidly. For fast-changing markets, the flexibility of OKRs provides the right balance between ambition and adaptability. Ultimately, it’s about choosing the method that best aligns with the dynamics of your organization—the best strategy is one that truly works.

Ready to give the OGSM framework a chance? Download our templates here