Objectives, goals, strategies and measures (OGSM) is a

goal setting Goal setting involves the development of an action plan designed in order to motivate and guide a person or group toward a goal. Goals are more deliberate than desires and momentary intentions. Therefore, setting goals means that a person has com ...

and

action plan An action plan is a detailed plan outlining actions needed to reach one or more goals. Alternatively, it can be defined as a "sequence of steps that must be taken, or activities that must be performed well, for a strategy to succeed". Process ...

framework used in

strategic planning Strategic planning is the activity undertaken by an organization through which it seeks to define its future direction and makes decisions such as resource allocation aimed at achieving its intended goals. "Strategy" has many definitions, but it ...

. It is used by organizations, departments, teams and sometimes program managers to define and track measurable goals and actions to achieve an objective. Documenting your goals, strategies and actions all on one page gives insights that can be missing with other frameworks. It defines the measures that will be followed to ensure that goals are met and helps groups work together toward common objectives, across functions, geographical distance and throughout the organization. OGSM's origins can be traced back to Japan in the 1950s, stemming from the process and strategy work developed during the

occupation of Japan Japan was occupied and administered by the Allies of World War II from the surrender of the Empire of Japan on September 2, 1945, at the war's end until the Treaty of San Francisco took effect on April 28, 1952. The occupation, led by the ...

in the

post-World War II The aftermath of World War II saw the rise of two global superpowers, the United States (U.S.) and the Soviet Union (U.S.S.R.). The aftermath of World War II was also defined by the rising threat of nuclear warfare, the creation and implementati ...

period. It has since been adopted by many

Fortune 500 companies The ''Fortune'' 500 is an annual list compiled and published by ''Fortune'' magazine that ranks 500 of the largest United States corporations by total revenue for their respective fiscal years. The list includes publicly held companies, along w ...

. In particular,

Procter & Gamble The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio. It was founded in 1837 by William Procter and James Gamble. It specializes in a wide range of personal health/con ...

uses the process to align the direction of their

multinational corporation A multinational corporation (MNC; also called a multinational enterprise (MNE), transnational enterprise (TNE), transnational corporation (TNC), international corporation, or stateless corporation, is a corporate organization that owns and cont ...

around the globe.

Purpose

The OGSM framework forms the basis for strategic planning and execution, as well as a strong management routine that keep the plan part of the day-to-day operations. It aligns the leaders to the objective of the company, links key strategies to the financial goals, and brings visibility and accountability to the work of improving the capabilities of the company. Due to the concise format (usually one page) and simple color-coding to signal progress, OGSM allows for quick management by exception of any underperforming activity or underperforming (key)

performance indicator A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of an organization or of a particular activity (such as projects, programs, products and other initiatives) in which it e ...

. And finally, it is simple, robust and developed as a team. OGSM is designed to identify strategic priorities, capture market opportunities, optimize resources, enhance speed and execution, and align team members.

History

Research indicates that the OGSM method was developed by Procter & Gamble, but the verifiable origins of OGSM remain unclear. Brought from Japan to corporate America in the 1950s, the OGSM concept was used initially by car manufacturers. Today, larger corporations, including Fortune 500 companies, employ this framework to keep their workforces centered on goals and objectives. Ideally, this tool attempts to express in one page what a traditional business plan takes 50 pages to explain.

Development in the U.S.

The OGSM has been employed by multinational corporations around the globe, including but not limited to: *

Coca-Cola Company The Coca-Cola Company is an American multinational corporation founded in 1892. It manufactures, sells and markets soft drinks including Coca-Cola, other non-alcoholic beverage concentrates and syrups, and alcoholic beverages. Its stock is lis ...

KPN Koninklijke KPN N.V. (Royal KPN N.V. in English), trading as KPN is a Dutch List of telephone operating companies, telecommunications company. KPN originated from a government-run postal, telegraph and telephone service and is based in Rotterda ...

Royal FloraHolland Royal FloraHolland, legally Koninklijke Coöperatieve Bloemenveiling Royal FloraHolland U.A., is a Dutch conglomerate of florists. It is one of the largest auction companies in the world. Royal FloraHolland is headquartered in Aalsmeer, with ...

Reckitt Benckiser Reckitt Benckiser Group PLC, currently branded as Reckitt, formerly known as Reckitt Benckiser, is a British multinational consumer goods company headquartered in Slough, United Kingdom. It is a producer of health, hygiene and nutrition prod ...

Honda commonly known as just Honda, is a Japanese multinational corporation, multinational Conglomerate (company), conglomerate automotive manufacturer headquartered in Minato, Tokyo, Japan. Founded in October 1946 by Soichiro Honda, Honda has bee ...

Mars Mars is the fourth planet from the Sun. It is also known as the "Red Planet", because of its orange-red appearance. Mars is a desert-like rocky planet with a tenuous carbon dioxide () atmosphere. At the average surface level the atmosph ...

MetLife MetLife, Inc. is the Holding company, holding corporation for the Metropolitan Life Insurance Company (MLIC), better known as MetLife, and its affiliates. MetLife is among the largest global providers of insurance, Annuity (US financial produ ...

* Triumph International Procter & Gamble (P&G) provides an example of how these ideas translate into organizational practice. A.G. Lafley, the CEO of P&G, uses the OGSM tool (as illustrated in ) to provide a framework for organizing the discussion about goals and strategic direction. While notably implemented at fortune 500 companies, startups and SMBs also use OGSMs to create strategic alignment.

References

{{Strategic planning tools Management frameworks Organizational cybernetics

Purpose

History

Development in the U.S.

See also

References