Benefits of combining OGSM and Obeya
Learn how OGSM & Obeya can transform your business strategy. Learn practical applications and overcome challenges for more effective management.
The OGSM method provides a structured approach to developing an effective and executable plan, summarised on a single page. This allows organisations to more easily and purposefully set their strategic direction and achieve their goals more efficiently.
In this guide, we explain what OGSM means, how it can help you achieve your goals, and why it's essential to your organisation.
OGSM is an acronym for Objective, Goals, Strategies, Measures. It's a proven method for creating an effective and structured strategic business plan.
An OGSM is a strategic framework that allows you to translate your vision and strategy into a clear and executable plan. The OGSM model is often summarized as a “one-page business plan”, which shows the core of a company's strategy in a concise and well-organised document.
OGSM helps you to:
- To concretise vision and strategy
- Make goals sharp, clear and measurable
- Getting the entire organisation on one page (both literally and figuratively)
By using an OGSM template, you can bring all goals, priorities, and actions together on one clear page. For example, OGSM challenges you to make sharp choices because you need to be able to print it legibly on a single page.
OGSM starts with defining an inspiring and directional Objective, which is then translated into measurable Goals. Strategies pave the way to achieving the Objective, emphasising the importance of focus and making decisive choices. Measures are established to track progress, initiate projects for execution, and make adjustments where necessary.
An inspiring Objective
Your point on the horizon based on your long-term vision and mission. What is the ambitious goal you want to achieve for your organisation, team or company? The Objective is a qualitative description of your ambition and gives direction to your plan.
Specific Goals
The quantitative translation of your Objective. It translates the most important elements of the Objective into concrete SMART (specific, measurable, achievable, relevant and time-bound) goals.
Guiding Strategies
Strategies are the building blocks for achieving your Objective (and Goals). The strategies describe the route of your plan. A strategy is always a description of a specific strategic choice. Each strategy therefore needs to be very clearly worded in order to be clear about what a strategy focuses on and how this can be achieved. In this way, each strategy provides concrete direction for implementing your plan.
Dashboards and Actions in the Measures
Monitor and adjust with dashboards and action plans. Measure the progress of each strategy with SMART targets and KPIs and make sure you keep the dashboard moving when executing actions. To properly follow up on an action and to ensure responsibility, you always give it an owner and a deadline.
Five reasons to get started with OGSM.
OGSM helps organisations to clearly define their goals. By formulating concrete goals and strategies, it becomes easier for everyone in the organisation to understand what needs to be achieved and how to do it. OGSM also helps you set priorities by identifying key goals and strategies. This prevents resources and energy from being wasted on less relevant tasks. With a clear and detailed plan in OGSM, decisions can also be made faster and more confidently.
2. Higher engagement, more responsibility and ownership
OGSM is highly effective in cascading plans throughout the organisation, from the highest management level to individual departments and projects. This means that strategic objectives are translated into concrete action plans at every level in the organization in a consistent and clear way. This ensures that everyone, from top management to individual team members, goes in the same direction and works towards shared goals. This fosters a sense of ownership and responsibility among everyone involved.
3. Improved (internal) communication and decision making
The OGSM model enhances clarity of focus and responsibilities, making it an excellent tool for fostering clear and consistent communication across the organisation. By providing a comprehensive overview of goals and strategies, OGSM delivers valuable insights to support decision-making. This streamlined approach enables more informed and aligned decisions that stay true to the strategic Objectives and Goals.
4: More flexibility and agility
OGSM provides a structured approach while remaining flexible and adaptable. This allows organisations to continuously respond to changes and manage risks effectively. By prioritising goals and strategies, OGSM encourages early identification and mitigation of potential risks. The model’s integration of projects, strategies, and desired outcomes enables swift adjustments to plans in response to internal and external developments. This ensures that the organisation remains dynamic, agile, and responsive to changing circumstances.
5: A continuous improvement process
OGSM can foster a culture of continuous improvement by emphasizing clear goals and focused efforts. The model makes it possible to systematically learn from what works and what doesn't work. By focusing on measurable results and a structured evaluation (e.g. via the PDCA cycle: Plan-Do-Check-Act), organisations can continuously improve their processes. This means not only looking at current performance, but also constantly looking for ways to increase efficiency and effectiveness. This continuous feedback loop ensures that the organization continues to develop and optimize based on concrete data and experiences.
OGSM provides a powerful framework for developing a clear, measurable strategy. Here you'll find out how to get started with OGSM and what the most important steps are.
Step 1: Objective - The long-term qualitative goal
The Objective is the overarching ambition or dream of your organisation. It describes what you want to achieve in the long term and serves as a guideline for all other steps in the plan.
A good Objective within the OGSM model must be clear, inspiring and guiding are and reflect the organisation's overarching ambition. A good objective consists of two components:
1. A clear ambition: What do you want to achieve?
2. A sharply chosen direction: How are you going to achieve that?
Objective example:
“Become the market leader in [your sector/region] by transforming into a fully customer-driven organisation.”
Step 2: Goals — The Quantitative Goals
The Goals are the measurable results that are necessary to achieve the Objective. These goals are SMART: Specific, Measurable, Achievable, Relevant and Time-bound.
Example Goal:
“A 12% market share within 12 months.”
Step 3: Strategies — The Strategic Building Blocks
The Strategies describe how you will achieve the Objective and Goals. This includes the most important choices and directions.
Characteristics of good Strategies: Focused on the core of your challenge and practically doable.
Example Strategy:
“Increase Google's organic share by improving technical SEO and link building.”
Step 4: Measures — Measurements and Actions
The Measures make the strategy measurable and action-oriented. They consist of:
1.Dashboard measurements: KPIs and metrics to monitor progress.
2. Actions: Specific tasks to implement the strategy.
Examples of Measures:
Dashboard: “Increase in average time spent on the website by 10% in 5 months.”
Action: “Research factors that contribute to bounce rates.”
OGSM is used by a variety of organisations, ranging from small startups to large multinationals. Some examples of organisations that use OGSM include Procter & Gamble, The Coca-Cola Company, Toyota, Kellogs, Heineken, Unilever, Philips, BYD, and many more.
OGSM is used in various sectors, including FMCG, the car industry, the technology industry, but also in service and public sectors.
To get the most out of OGSM, it's important not to see it as a rigid system, but as a flexible tool for goal-oriented work. Start by formulating an inspiring but realistic Objective for the next 3-5 years. Then translate this into specific, measurable goals for the coming year. Make sure your strategies are sharp and concrete, and that your measures can be evaluated regularly.
A common pitfall is setting too many goals or strategies. Be selective and focus on what really matters. Involve your entire team in the OGSM process and encourage open discussions. Remember that OGSM's strength lies in its simplicity and clarity. By working consistently with OGSM and integrating it into your daily activities, you'll find that your organisation is becoming increasingly effective in achieving both short- and long-term goals. Together, let's take the first step towards a clear, impactful strategy for your organisation.
To give you an idea of what you enter where in the OGSM, you can see a fictional example for OGSM.com below.
Directors, leaders, and managers know that their organisations must have a strategy. Yet, many of them face challenges throughout the strategic planning process. Our passionate and experienced consultants and strategy experts have helped many companies and organisations in various sectors, including small businesses, non-profit organisations, and large multinationals, to set their strategy, clarify their structure, and streamline their efforts to succeed with the power of OGSM. Always in an energetic and inspiring way.
Yes, the OGSM model is suitable for companies of all sizes and industries. Whether you're a startup or a multinational, OGSM helps you clarify goals, implement strategies, and achieve results.
The OGSM model is popular because it:
• Provides structure: It offers a clear and easy-to-understand framework.
• Enhances effectiveness: It emphasises measurable results.
• Boosts engagement: Teams collaborate to achieve shared goals.
OGSM helps organisations translate their vision into concrete actions, driving improved performance and teamwork.
OGSM is an acronym for:
• Objective: The overarching, qualitative ambition.
• Goals: Quantitative and measurable goals.
• Strategies: The methods and choices to achieve the objective.
• Measures: Dashboards and actions to measure progress and results.
The OGSM model offers a powerful structure for making strategic plans clear and executable.
The model helps organisations to focus on their core ambitions and translate them into practical steps. The OGSM model is designed to reduce complexity and engage teams at all levels in achieving shared strategic goals.
An OGSM works by bringing together four core components:
1. Objective: Formulate a clear, inspiring goal, preferably for the long term (2 to 5 years).
2. Goals: Define measurable and SMART goals to achieve the Objective.
3. Strategies: Develop strategies to achieve your Objective & Goals.
4. Measures: Use dashboards with targets and KPIs to measure progress and success, and use actions as tactical steps in execution.
With a well-designed OGSM, you can consistently implement and adjust goals and strategies based on measurable results.
The OGSM model is a strategic framework that helps companies turn their vision into a concrete, measurable and action-oriented plan.
OGSM stands for Objective, Goals, Strategies, Measures and offers a clear way to define long-term goals, develop strategies and monitor progress. The OGSM method is used worldwide because of the simplicity and effective implementation of the strategy.