OGSM Model (2022): What Is It and How To Use It (+ Template)

Home » OGSM Model (2022): What Is It and How To Use It (+ Template)  | 🕑 

Written by Gust de Backer

January 7, 2022

OGSM Model

OGSM Model: a solution that helps with strategic planning and goal setting.

You know where you want to go, but you don’t have a clear picture of how you’re going to get there.

Ideas and goals are often not realized because there is no clear planning associated with them.

I’m going to explain how OGSM ensures that you:

  • Start setting goals.
  • Know what it takes to achieve those goals.
  • Start planning tasks for those goals.
  • And keep track of progress.

Let’s start…

What is the OGSM Model?

The OGSM Model, which stands for “Objective-Goal-Strategy-Metric“, is a planning framework…

This model ensures that long-term visions are linked to short- to medium-term goals, actions and metrics.

OGSM Model Visualization
OGSM Model Visualization

In addition, the OGSM Model also ensures that there is sufficient insight into progress towards a certain goal.

The OGSM Model is a bridge between strategy and execution.

The model was conceived around 1950 as a follow-up to Peter Drucker‘s idea of ‘Management by Objectives‘. Since then it has been used by numerous companies such as Procter & Gamble and Coca Cola.

Departments, teams, organizations and individuals use the model; it is relevant to almost any kind of strategy.

A brief explanation of the OGSM Model:

Why use the OGSM Model?

The advantage of OGSM is that it allows you to see the “big picture” and link actions to goals.

However, there are a number of concerns:

  • Focusing too much on strategies and actions can dilute important metrics.
  • Do not interpret the model too broadly. Keep it specific.
  • Don’t stare blindly at the interpretation of the model, but adjust it if it is no longer feasible or relevant.

OGSM vs OKR

OKR stands for Objective and Key Result, or the goal you want to achieve and the results that determines your progress…

In practice, ‘initiatives‘ are also often added so that there are specific steps to achieve the results and goals.

OKRs often come in 2 forms:

  1. Committed: this must be achieved.
  2. Aspirational: as a goal to inspire those involved.

OGSM and OKR have a large overlap:

OKR vs OGSM
OKR vs OGSM

But the OGSM Model is more extensive and practical in its design making it my personal favorite of the two. In the end, it still comes down to taste.

How do you complete the OGSM Model?

Download the OGSM Canvas now:

How to fill in the OGSM Model?

  1. Do preliminary research

    Make sure you know your market and have a strategy for entering the market or expanding your market share.

  2. Choose your objectives

    Choose objectives that reflect your company’s mission or vision. The objective is a qualitative result.

  3. Link objectives

    Link a quantitative (SMART) result to your objective.

  4. Determine strategies

    Determine the strategies you will use to achieve your objectives.

  5. Find your measures

    Identify metrics that will enable you to measure the progress of your strategies.

1. Do your preliminary research

In order to properly fill out the OGSM Model, it is important that you have a good picture of the market, your strengths and your weaknesses.

Models that can help you with this:

Once you have a strategy for entering your market or expanding your market share, you can start setting objectives…

2. Choose your objectives

The objectives are an extension of your mission or vision and should reflect what the company wants to achieve. The objective is a qualitative result.

An objective must be:

  • Clear and easy to understand.
  • Short and easy to remember.
  • In line with what stakeholders want.
  • Live among the stakeholders.

Example

Facebook’s mission is to connect people worldwide.

Then an objective for Facebook could be:

  • Increase market share in Asia

Or

  • Double the number of monthly active users.

3. Link goals

If you have a clear idea of what your objective is then you can link a quantitative goal to it.

A ‘goal’ is a quantitative result that you must achieve in order to realize your qualitative objective.

Note that the goal must be SMART, or in other words:

  • Specific
  • Measurable
  • Achievable
  • Relevant
  • Time-bound

Example

If Facebook wants to start increasing market share in Asia then a goal could be.

Reach 50 million monthly active users in Asia within 6 months.

4. Define strategies

This is the road to Rome…

Determine the strategies you will use to meet your objectives and goals.

You can assume that you should have 3-5 strategies that describe how you are going to achieve your goal. It is important to be below 6, to maintain sufficient focus.

The strategies part is more the “what” and “how” in achieving objectives.

Strategies fall into one of the following 3 areas:

  1. Growth (customer or innovation)
  2. Productivity (production or quality)
  3. People (talent management or culture)

Example

In increasing Facebook’s market share in Asia, strategies could be:

  1. Set up an office in Asia.
  2. Run a marketing campaign in Asia.
  3. Pay Key Opinion Leaders (KOLs) from Asia to post exclusive content on Facebook.
  4. Add live shopping to Facebook in Asia.

5. Find your measures

Decide how you are going to measure progress on your strategies….

It is important that your metrics:

  1. Are quantitative and show progression.
  2. Are reasonably easy to track.
  3. And are accepted by those who participate as a good metric for the success of the strategy.

Example

In increasing Facebook’s market share in Asia, metrics could be:

  1. Office Asia: a 1,400m² office building with 350 people.
  2. Marketing campaign Asia: €15 million budget with a goal of €1 CAC (rest to come from shareability).
  3. Key Opinion Leaders (KOLs): 10 KOLs with at least 3 million followers exclusively on the platform for up to €5 million total.
  4. Live Shopping: Add live shopping in Asia only, within 3 months.

6. Plan actions

This piece I always add myself, call it OGSM+ 😉 .

To make the strategies more specific I add the following:

  1. What: what actions specifically need to be taken for the strategy, there should be 2-4 actions.
  2. Who: who is responsible for these actions?
  3. When: in what time period should the action be met?
WhatWhoWhen
Find building landRegion Manager1-1-2022 to 1-2-2022
Work out planRegion Manager + External1-2-2022 to 1-4-2022
Get approvalRegion Manager1-4-2022 to 1-5-2022
Build the officeExternal1-5-2022 to 1-12-2022

OGSM Example

OGSM Canvas
OGSM Canvas

Cascading OGSM

The interpretation of the OGSM Model must ultimately flow throughout the organization….

This is best accomplished in two ways:

  1. Give individuals / departments / teams their own OGSM Models.
  2. Further subdivide strategies using OGSM+.

Basically, there are three ways the OGSM Model can be cascaded:

  • Vertical: subdivide based on teams, departments, regions or countries.
    Vertical Cascading OGSM
  • Horizontal: divide based on months or years.
  • Scenario: strategic plans based on different scenarios.
    Horizontal and by Scenario Cascading OGSM

Watch out if you are going to do it on a departmental basis, because this can cause silos to form in your organization.

It is also important to apply the Plan-Do-Check-Act method. This allows you to constantly monitor whether all objectives, strategies and actions are still relevant. It helps to:

  • Initiate meetings and communicate a lot with the people involved.
  • Measuring progress every month and quarter.
  • Have an external expert look at the completed OGSM Model.

Now it’s your turn…

You are now armed with enough knowledge to fill out your strategic planning.

Now I want to know from you:

What do you use to set your goals and strategies and why?

P.S. if you need additional help, send an email at [email protected]

Frequently Asked Questions

What is OGSM?

The OGSM Model stands for Objective-Goal-Strategy-Measure and is basically the bridge between strategy and execution. It links long term vision to short to medium term goals, actions and metrics.

How do you fill out the OGSM Model?

Start by knowing your market and formulating a strategy to broaden the market or expand your market share. Then you can choose objectives to which you will link metrics, when you have done that you can set up strategies to achieve your objectives and measure progress.

What is an OGSM example?

Objective: Facebook wants to increase its market share in Asia.
Goal: Within 6 months 5 million monthly active users in Asia?
Strategy: 1. Set up an office in Asia, 2. Add live shopping in Asia.
Measures: 1. 1,400 m² office building with 350 people, 2. €15 million budget and 3. 1,000 development hours.

Which companies are using OGSM?

Companies such as: Coca Cola, Procter & Gamble, KPN, Reckitt Benckiser, Honda, Mars, MetLife and Triumph International.

What is measured with OGSM?

With a ‘Goal’ you keep track of what you need to achieve in order to realize your ‘Objective’ and with a ‘Measure’ you track progress on your ‘Strategy’.

Objective vs Goal

An objective is a qualitative goal that is not directly measurable and a goal is the quantitative goal that is measurable what you need to achieve to realize your objective.

What is the definition of OGSM?

The OGSM Model stands for Objective-Goal-Strategy-Measure and is basically the bridge between strategy and execution. It links long term vision to short to medium term goals, actions and metrics.

OGSM vs OKR

The OGSM Model is more comprehensive and practical. The OKR model is purely focused on objectives and key results (Goals) and therefore lacks the Strategy and Measure step.

Gust de Backer
Gust de Backer

I try to help business surpass their growth ceiling with my content.

Sounds interesting?

Let’s connect on LinkedIn!

Revenue Models (2021): 16 Different Revenue Models [B2B & B2C]

Revenue Models (2021): 16 Different Revenue Models [B2B & B2C]

So many different revenue models... But, which one fits your business? Over the past few decades, many new revenue models have proven to be profitable. That's why I'm going to show you 16 different revenue models so you can evaluate if there might be a better way to...

The Pirate Funnel: 6 Steps to Grow Your Business (AARRR Framework)

The Pirate Funnel: 6 Steps to Grow Your Business (AARRR Framework)

The Pirate Funnel (AARRR Framework), a way to map your entire customer journey and discover where your business is missing out on growth... Sounds almost too good to be true, but I'm going to show you: What the Pirate Funnel is and what AARRR stands forHow to fill in...

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Decision Making Unit Filled In

GROW Your Business With The 9 Best Templates!

 

✔  Discover the secrets of successful companies.

✔  Explanation and examples included.

✔  Never miss out on any growth for your company.

Free Content

You will find the download link in your inbox.

sign up hero 480x395 1

Exclusive Content for Subscribers!

 

✔  Actionable and proven tips.

✔  Up-to-date on the newest developments.

✔  Easy to implement strategies.

Free Content

You will find the download link in your inbox.

sign up hero 480x395 1

Toegang tot exclusieve content?

 

✔  Praktische en bewezen tips.

✔  Up-to-date op de laatste ontwikkelingen.

✔  Makkelijk te implementeren strategieën.

Free Content (NL)

You'll find the downloadlink in your inbox.