How OGSM can be used as an annual plan

OGSM as an 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 offers a systematic approach to making consistent progress year over year.

Objectives: Giving Direction

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

• Goal: “We want to become the market leader in sustainable energy solutions.”
• Do: “Through innovation and customer-focused solutions.”

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

Goals: Determining Specific Results

The Goals are the specific, measurable results that are necessary 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 90% customer satisfaction score.”

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

Strategies: The Way to Success

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

• “Development of a new product range focused on renewable energy.”
• “Expanding marketing efforts to new geographic markets.”

Strategies help bring daily activities in line with the organization's broader goals.

Measures: Measuring Progress and Defining Actions

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

Dashboard

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

• “Monthly sales growth of 5%.”
• “Reduction of operating costs by 10%.”
  

Action Plan

The action plan contains the specific actions and initiatives that need to be implemented to achieve the strategies. This part of the OGSM model is where the “Do” component of the “Goal-by-Do” method really comes to life. Actions can include, for example:

• “Launch campaign for the new product range.”
• “Trainings 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 wider goals.

Conclusion

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

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