January 25, 2023 | SlideUpLift

OGSM Framework: A way to go from Point A to B

Many businesses have ambitious goals for the future, such as expanding the company or boosting yearly revenue. The OGSM framework is one tool companies can use to match their day-to-day operations with these long-term objectives. If you’re engaged in a company’s strategic planning, you may also want to know more about this framework and how it can help businesses reach their long-term goals.

In this blog, we have defined the OGSM framework, highlighted its importance, discussed how to create this framework, and shared an example to help you make your own strategy.

What is an OGSM framework?

An OGSM framework is a strategic planning tool that assists businesses in defining long-term goals and developing practical plans to accomplish them. OGSM is an abbreviation for Objectives, Goals, Strategies, and Measures.

Companies can develop a high-level target statement and set smaller, quantifiable measures to help them proceed toward their long-term goal by clearly defining each of these terms. Employees, teams, or departments within an organization can also adopt the framework to set and track their own goals.

The OGSM puts into practice the idea that the art of strategizing is breaking down your overarching vision into a series of smaller actions to make it a reality. It’s all about going from point A to point B as effectively and efficiently as possible

When deploying this framework for your situation, it is critical to clearly define each of the four terms in order to properly execute the strategic plan. Here it is

Objectives

The objective is to provide a concise, well-written justification of the organization’s strategic goal. It typically corresponds to the company’s mission. 

The objective is often a long-term goal that major stakeholders, such as executives or managers, want to attain within the coming three to five years. The objective statement is aligned with the other aspects of the OGSM framework.

Goals

The goals defined in an OGSM framework define smaller and short-term actions. These goals are intended to assist the organization in making progress toward the goal. They serve as checkpoints for the organization to evaluate its progress toward the long-term goal. These objectives usually define specific, quantifiable actions that are in line with the objective statement.

Strategies

The strategies in the OGSM framework define how the company plans to achieve its objective. Defining clear strategies can assist businesses in determining where they can focus their efforts in order to continue making progress on their smaller goals. Strategies counsel enterprises on how to effectively deploy resources and assist organizations in prioritizing the strategic actions they can take to achieve their goals.

Measures

The framework’s final component provides measurable benchmarks to empower an organization in measuring progress toward its goals and objectives. 

Managers and other corporate executives can keep an eye on these metrics to ensure their staff is following through on their strategies. These metrics are frequently used as key performance indicators (KPIs) to keep teams focused on the long-term goal.

Why is an OGSM framework important?

Now, let’s take a glimpse at why the OGSM framework is important for a company.

  • Prioritizes strategic planning: By explicitly outlining long-term business goals, this planning tool can assist businesses in prioritizing their strategic planning.
  • Connects goals: The framework can help department heads or managers in connecting their team’s day-to-day work with the company’s goals.
  • Improves transparency: Defining the company’s goals and strategic measures to achieve those goals can help promote transparency within an organization.
  • Encourages teamwork: This tool encourages teams within a company to collaborate toward a common goal.

How to create an OGSM framework

The following are the steps you can take to develop an OGSM framework for your company:

1. Write an objective statement

The key aspect of establishing an OGSM framework is to determine the company’s goal because all other processes are linked to this statement. Define the organization’s long-term objective in collaboration with key stakeholders, which may include executives, managers, or investors. 

Consider the company’s goals and how it seeks to attain them. To better determine the emphasis of the objective, use succinct and clear language.

2. Choose specific goals

After you’ve prepared the objective statement, break it down into smaller goals to enable the company to track its progress toward its objective. Try to develop three to six goals that illustrate how an enterprise can accomplish this target successfully. 

These are often short-term goals that teams can achieve during their day-to-day activities, as contrasted to the objective statement. Make use of the SMART method, which stands for specific, measurable, attainable, relevant, and time-bound goals. This acronym can help you write quantifiable objectives that your organization’s teams can achieve in a certain time frame.

3. Establish strategies

Strategies help you in determining how to accomplish the smaller goals you selected in the previous step. Develop three to five strategies for each goal you’ve set. 

When choosing the strategy, consider how the action will assist the business in progressing toward its long-term objective. It is often helpful in preparing strategies into one of three primary categories that might help companies in meeting their strategic goals. These are the categories:

  • Growth: These strategies assist firms in achieving business growth, such as developing new products, getting more clients, or acquiring a company.
  • Productivity: These strategies help a corporation increase the quality or efficiency of production by finding approaches to improve product quality or streamline manufacturing procedures.
  • Personnel: These strategies help companies in supporting their staff by enhancing employee engagement or examining employee compensation packages.

4. Define measures: The next step in creating the OGSM framework for your company is to define specific measures to help you understand the efficiency of the strategies you’ve identified to achieve the specified goals. Select quantitative metrics that will allow you to clearly analyze a team’s progress on the strategies.

Aim for one to three measures for each strategy. Share these metrics with teams so that everyone is on the same page about what is expected from them. These metrics help determine if teams can fulfill their goals and the organization can achieve its objectives within the specified time frame.

5. Evaluate the process

Take time to review how the OGSM process is working for your organization as teams continue to work on the defined strategies. Hold regular meetings with key stakeholders to keep them up to date on the progress of the teams. 

Reports explaining the strategies that teams are executing, the outcomes of quantitative metrics, and the activities they’re doing to achieve the defined goals are useful. If required, you can modify certain strategies to help teams in meeting their short-term goals. This evaluation process can help ensure that everyone in the company is working toward the same objective.

Where Is It Used?

In this framework, you begin with an Objective and then align Goals, Strategies, and Measures to it. The original model was built on a single Objective, similar to the company’s vision; however, more recent implementations incorporate many strategic objectives.

The OGSM framework is often used by business leaders and managers to translate their vision into an achievable business plan. Apart from this, it is also used by individual teams to plan their specific contributions and translate the top-level objective into the day-to-day tasks that they will focus on. It’s a good tool when you’re provided an overall statement of the company’s aim but not much else.

Example of OGSM In Business World

The OGSM Framework serves as the foundation for strategic planning and execution in combination with a successful management routine. It ensures that managers are on the same page with the company’s SMART Goals and ties key strategy to financial targets. As a result, the company’s capabilities become more transparent and visible.

Objective

The beginning of the OSGM Framework is tied to the company’s big picture. What is the organization’s objective, and when will they achieve it? Higher management frequently establishes the strategy, and the target must reflect this. More information on the mission statement and vision can be found here. A clear corporate vision is essential since it leads to:

  • Integration between the organization with its external world/departments
  • Being decisive in the (de)centralization of authority
  • Coordination
  • Motivation
  • Planning

Example: Let’s say a company named X aims to become the biggest player in the industry Y.

Goals

Strategic goals are specific profitable and non-profitable goals and outcomes that a corporation plans to achieve over a set period of time. Goals are the second of four elements that a corporation must articulate as part of the OGSM Framework. It is critical that the goals drafted are measurable. Using SMART goals is one approach to ensure this. Strategic goals are significant because:

  • It stimulates priorities
  • Enable efficient allocation of resources
  • Lead to better budget planning
  • Act as an essential medium of communication
  • Serve as the basis for SWOT analysis

Example: To become the dominant player in industry Y, company X must have a 34 percent market share and a turnover of 80 million euros by the close of the financial year. Alternatively, company X must be operating in at least three new markets by the end of the financial year.

Strategies

If the company’s objectives and goals are clear, the following step is to consider achieving the goals. The OGSM framework’s strategy element serves this purpose. The strategies are written in short, precise words that define how the company or department works toward the organization’s ultimate objective.

For example, logistic optimization can help you access a broader market.

Measurement

The final component of the OGSM Framework is creating a monitoring strategy to track the planned accomplishments and developments. The goals drafted must be measurable. Although objectives cannot always be assessed in direct figures, factors like quality, planning, and deadlines can be.

OGSM Framework Template

At SlideUpLift, we offer exclusive OGSM framework templates to minimize your work efforts and maximize your productivity. Check out our collection!

OGSM template

Source: OGSM Model By SlideUpLift

OGSM template

Source: OGSM Model By SlideUpLift

OGSM template

Source: OGSM Model By SlideUpLift

Wrapping It Up

Everything in the OGSM framework begins with your objectives, and everything else should be linked with this initial element. When setting your goals, it is critical to consider the broad and long-term. 

Create an enticing vision of where you wish to go in the future. Make a visual picture of what success will look like for yourself. The clearer your vision, the more likely you are to achieve those objectives with the help of the OGSM framework.

We hope you found this OGSM explanation informative. It’s a terrific tool because it’s a simple way to demonstrate the significance of aligning strategy with objectives and then putting in place the necessary metrics to ensure you’re on track and agile enough to alter tactics to reach the bigger objective.

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