Why OGSM outperforms other planning models in long-term strategy

What is OGSM and how does it differ from other planning models?

OGSM stands for Objectives, Goals, Strategies and Measures. This strategic planning model provides a clear structure for translating long-term goals into concrete actions and measurable results. Unlike many traditional planning models, OGSM combines vision with execution in one clear framework.

The model works like this:

- Objectives: The overarching goal of the organization

- Goals: Specific, measurable goals that contribute to the main objective

- Strategies: Actions to achieve goals

- Measures: Concrete measurement points to monitor progress

OGSM stands out for its simplicity and focus on alignment. Where other models are often complex or leave too much room for interpretation, OGSM ensures a shared understanding of the strategy across the organization.

Benefits of OGSM for long-term strategies

OGSM offers various benefits for organizations that work on long-term strategies:

1. Improved focus: OGSM forces organizations to set priorities and focus on the most impactful initiatives.

2. Better alignment: The model provides a clear line between the overarching vision and daily activities, so that all employees understand how their work contributes to the larger goals.

3. Flexibility: OGSM is adaptable to changing circumstances without losing sight of the core strategy.

4. Measurability: Defining concrete measurement points makes it easier to monitor progress and adjust where necessary.

5. Improved communication: The model provides a common language for strategic planning, which facilitates communication between departments.

These advantages make OGSM particularly suitable for long-term planning. The model helps organizations stay consistent in their strategic direction while being able to respond flexibly to changes in the market.

How do you implement OGSM in your organization?

Implementing OGSM in your organization requires a structured approach:

1. Start with the “Objective”: Define a clear, inspiring long-term vision for your organization.

2. Set “Goals”: Translate the overarching goal into specific, measurable goals for the next 3-5 years.

3. Develop “Strategies”: Define the key strategies to achieve these goals. Make sure these strategies are concrete and action-oriented.

4. Define “Measures”: Set measurable indicators for each strategy to monitor progress.

5. Create support: Involve employees from different layers of the organization in the OGSM process to create ownership.

6. Integrate into existing processes: Ensure that OGSM is included in existing planning and reporting cycles.

7. Review and adjust: Evaluate the OGSM regularly and adjust where necessary, without losing sight of the long-term vision.

By following these steps, OGSM can be effectively integrated into your organization's strategic planning cycle.

Common challenges when using OGSM and how to overcome them

While OGSM offers many advantages, organizations can also face implementation challenges:

1. Resistance to change: Employees can stick to familiar planning models. Overcome this by clearly communicating the benefits of OGSM and celebrating successes.

2. Too ambitious goals: Organizations can have a tendency to set too many goals. Focus on a limited number of impactful goals to prevent fragmentation.

3. Lack of alignment: Departments can still work in silos. Encourage cross-functional collaboration and organize regular coordination between teams.

4. Insufficient measurability: Defining the right KPIs can be difficult. Work iteratively to refine your measurement points and don't be afraid to make adjustments.

5. Inflexibility: Some organizations stick too tightly to the initial OGSM. Build in flexibility by allowing regular reviews and adjustments.

By proactively addressing these challenges, organizations can maximize the benefits of OGSM and execute their long-term strategy more effectively.

OGSM vs. other popular strategic planning models: a comparison

To understand the added value of OGSM, it is useful to compare it with other commonly used strategic planning models:

1. OGSM vs. Balanced Scorecard (BSC):

- OGSM: Simpler, more focus on alignment between vision and execution.

- BSC: More comprehensive, with more emphasis on different perspectives (financial, customer, internal processes, learning and growth).

2. OGSM vs. OKR (Objectives and Key Results):

- OGSM: More suitable for long-term planning, offers a more complete strategic framework.

- OKR: Often used for shorter terms (quarters), more focused on rapid iterations.

3. OGSM vs. SWOT Analysis:

- OGSM: Action-oriented, translates analysis directly into concrete goals and strategies.

- SWOT: Especially an analysis method, offers less guidance for implementation.

4. OGSM vs. McKinsey's Strategic Horizons:

- OGSM: More structured, with a clear link between goals and measurement points.

- Strategic Horizons: Provides a framework for balancing short- and long-term investments, but less concrete in execution.

OGSM stands out for its balance between simplicity and completeness. It provides a clear framework for both strategy development and execution, making it particularly effective for long-term planning.

In summary, OGSM outperforms other planning models in long-term strategy because of its focus on alignment, measurability and flexibility. The model helps organizations to make their vision concrete, while leaving room for adjustments to changing circumstances. By implementing OGSM, companies can achieve their strategic goals more effectively and stay focused on what really matters to their long-term success.

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