OGSM: charting strategy

The OGSM (Objectives-Goals-Strategies-Measures) is a classic tool for planning and communicating strategy. The OGSM was developed by the Japanese automotive industry in the 50's, and has been since then incorporated by most multinational companies. The ultimate purpose of the OGSM is to summarize in a one-pager document the strategic plan of the company, and to facilitate the communication and alignment of  the different business units and functions towards the common company goals.





The OGSM includes both qualitative (statements) and quantitative (figures) elements

Objectives (words): objectives summarize the long-term vision of the company. They define where do we want to position the company (or project) in the future, in relation to our environment. Defining challenging, yet specific and achievable objectives is paramount to plot the rest of the strategic plan.

Goals (numbers): goals are the translation of the vision and objective into measurable concepts, such as net sales, profitability, market share or time to market.

Strategies (words): strategies define how to accomplish our objective and goals. Strategic thinking means making decisions about thinks to do, and thinks not to do.

Measures (numbers): measures are quantitative milestones set as benchmarks to check how the team performs according to the plan.

In our ever-changing, fast-paced environment, OGSMs are necessarily living documents that need to be evaluated at least on a yearly basis to reassess our current long-term vision, and to question and review the steps towards accomplishing our goals. Additionally, to ensure the alignment of the whole company, the Corporate OGSM usually cascades down to Business Unit, Function, and Team OGSM documents which are mutually synchronized.

A final food for thought when planning the strategy of our company or team: excessive planning without action (paralysis by analysis) leads nowhere. Or, as former P&G CEO A.G.Lefley once said:

  

"Execution is the only strategy that your consumer, your retailer, your competitor - the only strategy anybody on the outside- ever sees"