How to align your HR strategy with overall business goals using OGSM

Introduction

What is OGSM and why is it important for HR?

OGSM stands for Objectives, Goals, Strategies and Measures. It is a powerful method for strategic management that is increasingly being used within HR departments. We understand that aligning HR strategies with business goals can sometimes be overwhelming. OGSM offers a clear structure for taking on this challenge.

For HR professionals, OGSM is invaluable. It helps translate abstract business goals into concrete HR actions. This makes personnel policy not only reactive, but proactive and strategic. We often see HR teams struggling to demonstrate their added value. With OGSM, you can set measurable goals and clearly show the impact of HR initiatives.

The four components of OGSM for HR

Let's take a closer look at the four components of OGSM from an HR perspective:

1. Objectives: These are the overarching goals of the organization. For HR, this means translating business goals into staff-related objectives.

2. Goals: Specific, measurable goals that contribute to the goals. For example, improving employee satisfaction or reducing staff turnover.

3. Strategies: The approach to achieving the goals. For example, implementing a new development program or improving onboarding.

4. Measures: Concrete dashboard measurements to monitor progress and actions, often in the form of concrete projects, to achieve the desired results. Such as quarterly employee engagement measurements or time-to-hire statistics.

We understand that it can sometimes be challenging to concretely fill in these components for HR. It requires a different way of thinking, where HR activities are directly linked to business results. But it is precisely because of this exercise that, as an HR professional, you get more control over your strategic role within the organization.

Steps to align your HR strategy with OGSM

Aligning your HR strategy with OGSM doesn't have to be complicated. We've noticed that many HR professionals struggle with where to start. That's why we've developed a simple step-by-step plan:

1. Understand the business strategy: Immerse yourself in the overall goals of your organization.

2. Translate into HR context: How can HR contribute to these goals?

3. Set SMART Goals: Make Your HR Goals Specific, Measurable, Achievable, Relevant, and Time-Bound.

4. Develop strategies: Come up with concrete actions to achieve your goals.

5. Determine measurements: Choose KPIs that provide insight into progress.

6. Communicate and engage: Share your OGSM plan with stakeholders and your team.

7. Monitor and adjust: Evaluate regularly and don't be afraid to make adjustments.

We've seen that HR teams that follow these steps not only get more focus in their work, but also more recognition within the organization. It helps you become a strategic interlocutor for management.

Benefits of using OGSM in HR

Implementing OGSM in your HR strategy offers numerous benefits. We often see HR departments struggling to prove their value. OGSM can be a game-changer in this regard:

• Improved alignment: HR activities are seamlessly aligned with business goals.

• Measurable results: Concrete KPIs make the impact of HR visible.

• Increased focus: Priorities become clear, allowing you to work more effectively.

• Better communication: A common language for strategy within the organization.

• Flexibility: Easily adaptable to changing conditions.

We've seen HR managers grow from operational executors to strategic partners within their organizations. By embracing OGSM, as an HR professional, you can concretely demonstrate your added value and take a stronger position at the board table.

Challenges and solutions for implementing OGSM in HR

We understand that implementing OGSM in HR is not without challenges. Many HR professionals feel overwhelmed by the change in the way they work. Here are some common obstacles and how to overcome them:

1. Resistance to change: Clearly communicate the benefits and involve the team in the process.

2. Trouble setting measurable goals: Start small and build gradually. Look for existing data that you can use.

3. Lack of coordination with other departments: Organize cross-functional workshops to identify shared goals.

4. Overly ambitious goals: Be realistic and focus on progress, not perfection.

5. Insufficient management support: Use pilot projects to quickly show results and get support.

Remember, implementing OGSM is a journey, not a destination. It takes time and patience, but the results are worth it. We've seen how persevering HR teams eventually transform into a more strategic and valued role within their organization. Stay focused on the long-term benefits and celebrate every small win along the way.

Want to try it for yourself? Download our templates here!

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