Everything about OGSM
The OGSM method helps you plan quickly and effectively. As long as you dare to make clear choices, you can create a strategic plan with OGSM that brings insight, structure, and direction to the organization.
Quickly check out the complete explanation!
What is OGSM?
What can you use OGSM for?
What exactly does OGSM stand for?
How did the OGSM model come about?
Who uses OGSM?
Which companies use OGSM?
OGSM example
OGSM Business Plan on 1 A4
Our vision on strategy: OGSM
OGSM across the organization through cascade
The OGSM template
"A strong plan hurts, because you experience "toothache"."
What is OGSM?
The OGSM method serves as a framework for strategic planning. With OGSM, you can quickly and effectively create an actionable business plan. The OGSM methodology helps you make your plans and objectives so concrete that they become truly achievable. It is a powerful tool for measuring progress and maintaining focus. Additionally, it helps you easily communicate the strategic choices to all employees.
What can you use OGSM for?
We also call OGSM a business plan on one A4 page. The OGSM methodology and approach are also very suitable for departmental plans, project plans, annual plans, and practically any other plans you can think of. As long as you have a clear goal in mind, the OGSM method can help you achieve it.
What exactly does OGSM stand for?
OGSM stands for Objectives, Goals, Strategies, and Measures. The OGSM model makes it clear at a glance how the different components relate to the Objectives and to each other. The OGSM method forces you to make real choices.
Objectives:
OGSM begins with a clear formulation of a qualitative ambition: the Objective. In one sentence, it summarizes where you want the organization to be after a certain period. It is the guiding star on the horizon. The Objective of your OGSM must be both inspiring and directional. Everything that follows depends on the Objective, so it is crucial that all stakeholders genuinely agree on it.
Goals:
The qualitative ambition of the Objective is translated into quantitative targets in the Goals. The Goals measure all the elements of the Objective and nothing that is not in the Objective. This allows you to assess whether the desired results are being achieved. When the Goals are met, the Objective is achieved. Try to have as few Goals as possible in an OGSM, but enough to clearly determine that the Objective has been met. Making sharp choices about the Goals is important, and making the Goals SMART is also necessary.
Strategies:
The Strategies are the roads to Rome—the way the Objective can be realized. What choices are made to reach our destination? It’s important here, too, to make real choices; history teaches us that it’s better to do a few things well than many things poorly. Therefore, we strongly advise against having more than five Strategies in your OGSM. To ensure the Strategies in an OGSM are well-chosen and well-formulated, you can evaluate them using the five S’s. A strategy must be Specific, Selective, Sustainable, Synchronized, and Sufficient.
Measures:
The word “Measures” can be translated to both measurement and action. We give actions a more active name: Actions. Actions are the steps to be taken in how you will achieve the strategy. To measure whether you are on the right track with the chosen strategies and actions, you make the strategies measurable in the dashboard. Here, too, it is important to define the measurements sharply by making them SMART. We recommend including measurements that are already being conducted within the company in the Dashboard. Existing measurements that indicate 80 percent of whether you are on track are more informative than new measurements that indicate 100 percent of where you want to go but whose feasibility is still uncertain.
Curious about our working method with OGSM?
We have been specialists in our fields for 20 years and deliberately work across all sectors. Whether they are large or small, international or local, public or private organizations, corporates, or start-ups.
How did the OGSM model come about?
The OGSM method originates from a way of thinking called Management by Objectives. Peter Drucker introduced this way of thinking in the mid-20th century with the aim of creating a management methodology that truly connects employees and the organization’s goals.
Growing and Developing Together
The foundation of Management by Objectives is that goals are created collaboratively. When you determine the organization’s goals together, you give employees motivation and empowerment.
The First Man on the Moon
This management methodology was first applied by NASA. The goal of getting the first man on the moon was divided into sub-goals and assigned to different teams. These teams, in turn, translated these sub-goals into sub-sub-goals, which were then assigned to sub-teams, and so on. This way, everyone was involved in setting the objectives and knew that when they achieved their goal, they had genuinely contributed to the main goal: getting a man on the moon.
Origin of the OGSM Methodology
Several large car manufacturers in Japan saw NASA’s success and further developed Management by Objectives into the model we now know as the OGSM methodology.
Became curious?
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Who uses OGSM?
The OGSM methodology is used by many different organizations and companies, as well as by departments, teams, and even individuals. For example, a starting entrepreneur can create their first strategic plan using OGSM, while large Fortune 500 organizations can also detail their multi-year planning with OGSM. Regardless of the size of the OGSM user, what they have in common is that they have set a goal and made choices about the direction to take to achieve it.
Which companies use OGSM?
Examples of companies that use OGSM include Procter & Gamble, Coca-Cola, and Mars. But in the Netherlands, there are also a large number of companies that use OGSM as the primary instrument for strategic planning. Think, for example, of Heijmans or Aviko, and many other companies that we have helped with OGSM.
OGSM example
The OGSM example of Jeep from the book “Business Plan on 1A4” is a good example to learn from. The ambitious yet achievable Objectives, SMART Goals, sharply chosen Strategies, and concrete Measures make the functioning of OGSM very clear. On our page: Jeep OGSM, we have elaborated on this example in our OGSM template and explain how each component of OGSM is structured.
OGSM Business Plan On 1 A4
The book “OGSM Business Plan on 1 A4” is the go-to resource if you want to get started with OGSM. With this book, you’ll learn everything about the methodology and quickly make OGSM your own. It assists you in setting up your Business Plan on 1 A4. The book is packed with examples, practical tips, and exercises.
Our vision on strategy: OGSM
New Growth Strategies collaborates closely with its clients on strategy development and implementation using OGSM, Business Plan on 1 A4. This methodology, about which our founder Marc van Eck has written the eponymous bestseller.
OGSM across the organization through cascade
The OGSM of the organization can be further translated into departments, divisions, or even individuals. This is done through cascading. This ensures that everyone at every level within your organization knows how to contribute to the main Objective of the organization.
The OGSM template
Want to get started with OGSM yourself? Download the OGSM template here.
Reviews about working with OGSM
Curious about what Dutch companies experience with OGSM? Below you will find some reviews from our customers that we have helped with OGSM.
"The OGSM methodology is an effective tool for making sharp choices and providing impactful leadership. I know of no better method that helps make choices so simple and effective. I'm confident that OGSM is the right choice. So, let's get started... if you dare!"
"The logical structure of the methodology forces you to engage in discussion and make truly sharp choices together. You can also monitor whether you're on the right track and adjust if necessary. I still use the OGSM methodology and am convinced that, when applied correctly, OGSM truly helps individuals, teams, and companies move forward."
