The OGSM Framework

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The OGSM Framework

What is OGSM?
The OGSM Framework (Objectives - Goals - Strategies - Measures) is a strategic tool used for goals and strategy setting.
The term OGSM was first coined in the 1950s in Japan. Since its inception, the OGSM methodology has been adopted by several Fortune 500 companies (e.g. P&G) as a strategic performance management tool.

It is a strategic planning framework that uses a top-down approach to define the Objective, Goals, Strategies & Measures (OGSM) of a business. The output is supposed to be a clear, simple and concise (preferably ONE page) strategic plan.

OGSM has also formed the basis for a common decision making process across the enterprise by providing a transparent process of performance tracking.

Explanation of OGSM TERMS

• STRATEGY – This is a cumulative proactive step carried out to place the organization in a position to improve, grow and sustain the organization and client services
• GOALS – These are comprehensive statements of what we hope to achieve and summarize the primary methods through which we intend to reach the strategic destination. Goals support the overall vision, are often linked, and reflect the priorities established in our focus areas.
• OBJECTIVES – Objectives are concise statements that clearly describe the specific things we must do well in order to execute our goals. It can answer questions like – “What is required to be done that the client wants to see to achieve this goal”
• MEASURES – Measures are objective indicators to measure the performance of an objective. They provide a quantifiable means of gauging progress towards successfully achieving the overall strategic goal.
• PERSPECTIVES – This refers to the key views of an organization, reflecting differing interests and perceptions. As employees, we have one perspective, as shareholders we have another perspective and our clients have yet another perspective. These are the different viewpoints through which success is defined and strategy is developed.

Note that organizations define the OGSM terms differently and follow a different hierarchy when it comes to analyzing performance.


Source: Blog by Vasudeva Renjala: OGSM – An Effective Way for Enterprises to design and analyze .

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		2 Cemre Nalbantoglu Management Consultant, Turkey
	Addition to OGSM This approach seems very introvert and short term. I think this approach should at least be enriched with a competitive intelligence survey, in which the socio-economic and technological trends are analyzed. In short: where the world is going to. After that, you have set the point where you would like to be in 10 - 20 years. After these steps, follow your framework.

		1 Antoinette Wieman Strategy Consultant, Netherlands
	Prepare for your OGSM You are right Cemre, an OGSM needs to be based on a proper analysis. Tools we recommend using are Porter's 5 forces, a PESTEL analysis, BCG matrix, a customer journey and summarizing this into a Power SWOT. This is the basis for drawing conclusions in terms of IST-SOLL Gap analysis: where are we now and where do we aim to go and how what gap do we need to close.