OGSM Framework: Objectives, Goals, Strategies and Measures
Why is an OGSM framework important?
The OGSM framework can assist businesses in defining their long-term goals and creating successful strategies to achieve these goals. Most businesses create this framework in a brief, one-page format so that everyone in the organization can understand how their work is in line with the strategic goals of the business. Some additional benefits of this planning framework are:
What is an OGSM framework?
A strategic planning tool called an OGSM framework aids organizations in defining their long-term objectives and developing doable plans of action to meet those objectives. The acronym OGSM stands for objective, goals, strategies and measures. Companies can create a high-level objective statement and smaller, measurable actions to help them move closer to their long-term goal by precisely defining each of these terms. The framework can be used by staff members, teams, or departments within an organization to set their own objectives and track their development.
To effectively implement the strategic plan, it’s crucial to thoroughly define each of the four terms when creating this framework. Heres what each term in the OGSM framework means:
A brief, well-written explanation of the organization’s strategic goal is the aim. It usually aligns with the companys mission. The objective is typically a long-term goal that is desired by important stakeholders, such as managers or executives, to be accomplished by the company within the next three to five years. The objective statement is consistent with all of the other components of the OGSM framework.
The goals in an OGSM framework describe more manageable, immediate actions, whereas the organization’s objective statement offers a long-term, high-level target. These objectives seek to accelerate the achievement of the organization’s main objectives. They serve as benchmarks that the organization can keep track of to assess its advancement toward the long-term objective. Typically, these objectives outline precise, quantifiable actions that are consistent with the objective statement.
The strategies in this framework describe the methods the organization will use to achieve its goal. Companies can better understand where to focus their efforts to continue achieving their smaller goals by defining clear strategies. Strategies help organizations prioritize the strategic actions they can take to achieve their goals by guiding them in how to allocate resources effectively.
The framework’s final element offers quantitative benchmarks so that an organization can track its progress toward its objectives and goals. To make sure their teams are executing strategies successfully, managers and other company leaders can keep an eye on these metrics. These metrics frequently act as key performance indicators (KPIs) to assist teams in staying focused on achieving the long-term goal.
How to create an OGSM framework
The actions you can take to develop an OGSM framework for your business are listed below:
1. Write an objective statement
Determining the goal the company wants to achieve is crucial to creating an OGSM framework because it informs all other steps. Determine the organization’s long-term objective in collaboration with a company’s key stakeholders, which may include executives, managers, or investors. Think about the organization’s objectives and expected methods of achieving them. To clarify the goal, use language that is succinct and precise.
2. Choose specific goals
Pick a few smaller goals to help the organization gauge progress toward its objective once you’ve written the objective statement. Decide on three to six objectives that will explain how your organization can accomplish this objective. These are typically short-term objectives that teams can accomplish through their regular operations, unlike the objective statement. Use the SMART method (specific, measurable, attainable, relevant, and time-bound) to guide your work. Using this acronym will help you write quantifiable objectives that teams within the organization can complete within a given time frame.
3. Establish strategies
You can use strategies to figure out how to accomplish the more manageable objectives you chose in the previous step. Establish three to five strategies for each goal youve identified. Think about how each tactic can help the organization move closer to its long-term goal before implementing it. It can be useful to classify strategies into one of three major categories that can assist organizations in achieving their strategic goals. These categories are:
4. Define measures
To understand the effectiveness of the strategies you’ve identified, you must define specific measures in the framework’s final section. Select quantitative metrics that will allow you to assess a team’s performance on its strategies with clarity. Aim for one to three actions to be listed for each tactic. Teams should be informed of these measures so they know what is expected of them. These metrics enable you to assess whether teams are capable of achieving their objectives and whether the organization will be able to do so within the anticipated time frame.
5. Evaluate the process
Take time to assess how the OGSM process is performing for the organization as teams continue to work on the identified strategies. Frequently update important stakeholders on the progress teams are making. Reports outlining the tactics teams are using, the outcomes of the quantitative measures, and the actions teams are taking to achieve the defined goals are helpful. You can modify some tactics if necessary to assist teams in achieving their immediate objectives. This evaluation procedure can ensure that everyone in the organization keeps striving to achieve the common goal.
Example of an OGSM framework
For assistance in creating this planning tool for your own business, consider the following example of an OGSM framework:
Mariville 123 Fitness is a brand-new gym that just opened. The gym’s membership has increased significantly over the past few months, but the manager has noticed that members over 40 make up the majority of that growth. The facility’s manager decides to use the OGSM planning tool to draw in younger customers.
to increase membership among those between the ages of 18 and 40
Strategies for the first goal:
Strategies for the second goal:
Strategies for the third goal:
Measures for the first goals strategies:
Measures for the second goals strategies:
Measures for the third goals strategies:
What is OGSM framework?
An OGSM framework is a tool for business planning that aids in defining and connecting long-term visions to short- and medium-term objectives and activities for groups, teams, and individuals. The acronym stands for “objective,” which is a succinct statement of the organization’s goals that is written clearly.
How do you write a good OGSM?
History. The verifiable origins of OGSM are unknown, despite research suggesting that Procter & Gamble (Kingham and Tucker) developed this method, which is frequently employed by many consultancies. The OGSM concept was introduced to corporate America from Japan in the 1950s and first applied by automakers.
What are the 4 key elements of a strategic framework?
- Answer the question: what are you trying to achieve? …
- How are you going to accomplish what you want to accomplish, please?
- Combine the content to create a draft. …
- Seek feedback from team members. …
- Refine the statement. …
- Use the statement to continually test the OGSM.