OGSM Framework

The OGSM Framework is a a Planning process that helps companies achieve their Objectives efficiently.

To do this, this method offers a guideline to follow, consisting of 4 points.

Its name is an acronym for the points proposed:

• Objective.
• Goals.
• Strategy.
• Measure.

Objective: What you want to achieve, your ultimate Objective.

• It is usually a Long-term goal.

Goals: The Milestones necessary to reach the Objective.

• Smaller goals that help you get closer to your final objective.

Strategy: The Strategy that will be followed to achieve those Goals.

• Not to be confused with tactics.

Measures: What metrics will be used to verify that the Goals are being achieved.

• Indicators that will measure progress: KPIs, for example.

Sometimes, people prefer to use “strategies” in plural.

Why don’t we do it this way?

Because we don’t want to confuse Strategy; A philosophy that governs the entire company…

… With tactics; Actions to achieve milestones.

We prefer to conceive the strategy as a global and common idea for the entire company.

But … You can do it however you want, of course.

However, the most common misunderstanding with this method is:

How is an objective different from a goal?

Goals vs Objectives

This method conceives an Objective as a long-term ultimate target.

• What a company wants to be.

On the other hand, Goals are more specific targets that help achieve that Goal.

• The Steps necessary to reach the ultimate Objective.

In everyday English, these definitions are often opposite.

• However, this method uses them in this way.

Now, it is time to see the first example:

In 1958, NASA was created.

It’s original purpose was to explore the space  and new methods of flight.

• Rockets, Shuttles, etc.

But, years went by and, the Space Race pushed the USA to look for a more ambitious goal: the Moon.

• The USSR (or CCCP) was ahead of that Race and the US couldn’t just sit around watching.

That is why the NASA created the Apollo XI mission:

• A mission whose Objective was to reach the Moon (literally).

Let’s try to imagine what an OGSM from the Apollo XI mission would have looked like:

Objective:

• Reach the Moon on July 20, 1969.

Goals:

• To develop an effective Earth-Spacecraft communication system.
• To create a safe Spacecraft with a heat shield for the re-entry in the Earth.
• To create a versatile vehicle for driving on the moon.
• etc.

Strategy:

• Hire the most intelligent and expert engineers in the world (mainly from US and Germany).
• Set extremely detailed goals and master every aspect of them.
• Use a multidisciplinary approach (Physicists, Engineers and Chemists from different disciplines).

Measures:

• Response time and Scope (in long distance communications).
• Heat resistance (from heat shields).
• Takeoff Power.
• etc.

As we often say, we are aware that this method seems very intuitive.

• As many other Strategy or Planning methods.

But remember: Intuitive is not the same as Obvious.

Then… Why is it important?

This method offers a simple and clear guideline to follow.

Unlike other more complex and detailed methods, the OGSM Framework is very easy to understand.

• That is why we consider it a very helpful tool.

If you read us frequently, you may be thinking of a tool that we have already explained:

• The Balanced Scorecard.

Aren’t these two tools the same?

• Short answer: No.

OGSM vs Balanced Scorecard

These 2 methods are similar, but they have some differences:

The Balanced Scorecard tracks different performance Indicators in a very detailed way.

• It studies Customer Satisfaction, Internal Processes, Financial indicators…

On the other hand, the OGSM method generally offers a broader overall view.

* If you are interested in the Balanced Scorecard, check our “Balanced Scorecard” Page.

Now, before we share more examples with you, let’s quickly explain how you should develop an OGSM framework.

It is very simple.

1. Establish what your Objective is.

• Seems obvious but lots of companies we have analyzed, don’t even know what they want.

2. Analyze what Milestones would need to be achieved.

• The Goals that would guarantee you reach your Goal.

3. Decide which Strategy would be the best to reach those goals.

• We recommend a common Strategy: Multiple Strategies can interfere each other.

4. Establish metrics that will evaluate your progress.

• They must be measurable, with numbers.

* If you are having trouble defining your metrics, we recommend you to visit our “Define your Data” Page.

Now, let’s see some examples:

We have chosen examples from Famous Companies and others from Small Businesses.

• In this way, you can see how the OGSM Framework can be applied in all kinds of projects.

Let’s begin:

In case you don’t know, Ford was the first company in history to implement mass production in the automotive industry.

• By doing this, they were able to cut costs and develop a much more affordable car.

The first affordable car mass manufactured was the legendary Ford T.

Let’s imagine that Henry Ford had used the OGSM method.

It could have looked like this:

Objective:

• To develop the first affordable car.

Goals:

• Be able to manufacture 10,000 engines per day.
• Be able to assemble 9,000 cars per day.
• Obtain less than 5 serious defects per 1,000 cars.
• etc.

Strategy:

• Implement the mass production system in all assembly processes.
• Assign each operator as few simple tasks as possible.
• Strong collaboration with suppliers.

Measures:

• Automobiles manufactured per day.
• Engines manufactured per day.
• Cost and Profit per car.
• Defects per 1,000 cars.
• etc.

Now let’s imagine that you are opening your own Gym.

• You decided to start your own Business.

You have experience in Personal Training… But you don’t know how to plan your new Business.

That is why you finally choose to use the OGSM Framework.

• It is an easy and efficient tool to use.

It looks like this:

Objective:

• Have a Profitable Gym.

Goals:

• To install 10 different exercise machines in the first month.
• Have more than 25 members at the end of the first semester.
• Have a Website and a Facebook page at the end of the first quarter.
• etc.

Strategy:

• Develop new workouts geared towards weight loss.
• Track your clients’ performance: The client, at the center of everything.

Measures:

• New Members per month.
• Monthly profits.
• Social Media mentions.
• etc.

SWATCH is to Swiss watches what Ford was to automobiles.

• They manufacture high quality affordable watches 100% made in Switzerland: homeland of watches.

Let’s try to imagine what their OGSM framework might have looked like when they founded the company:

Objective:

• To manufacture high quality affordable Swiss watches.

Goals:

• Have a cost per watch below $20.
• Manufacture more than 1 million watches in the first 2 years.
• Have a profit margin greater than 3%.
• etc.

Strategy:

• Produce economies of scale by grouping together different suppliers of Swiss watches.
• Casual style.

Measures:

• Watches manufactured per day.
• Cost per watch.
• Variation in sales volume.
• etc.

In this last example, we will imagine that you are determined to launch your own beer on the Market.

• It is a relatively easy Business to start.

You will start with a small production in a small warehouse owned by your family.

However, you have no idea how to plan your future.

That is why you decide to use the OGSM Framework:

Objective:

• To develop a popular craft beer.

Goals:

• Receive a local beer award.
• Reach sales of 5,000 beers per month in your first year.
• Start selling outside your region in your first year.
• etc.

Strategy:

• You will develop an innovative beer with a new flavor.
• You will try different flavors and ask people to rate them.

Measures:

• Bottles sold per month.
• Increase in demand.
• Position obtained in craft beer contests.
• etc.

The OGSM Framework is a a Planning method that helps companies achieve their Objectives by focusing on 4 points.

• Objective: What you want to achieve, your ultimate Objective.
• Goals: The Milestones necessary to reach the Objective.
• Strategy: The Strategy that will be followed to achieve those Goals.
• Measures: What metrics will be used to verify that the Goals are being achieved.

Unlike other more complex and detailed methods, the OGSM Framework is very easy to understand.

Steps to create an OGSM Framework:

1. Establish what your Objective is.
2. Analyze what Milestones would need to be achieved.
3. Decide which Strategy would be the best to reach those goals.
4. Establish metrics that will evaluate your progress.