Objectives, goals, strategies and measures (OGSM) is a goal setting and action plan framework used in

strategic planning Strategic planning is an organization's process of defining its strategy or direction, and making decisions on allocating its resources to attain strategic goals. It may also extend to control mechanisms for guiding the implementation of the st ...

. 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 assure 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 victorious Allies of World War II from the 1945 surrender of the Empire of Japan at the end of the war until the Treaty of San Francisco took effect in 1952. The occupation, led by the United States wi ...

in post-World War II period. It has since been adopted by many Fortune 500 companies. In particular, Procter & Gamble uses the process to align the direction of their multinational corporation 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. 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

Although research indicates that this method was developed by Procter & Gamble (Kingham and Tucker) and is commonly used by many consultancies, the verifiable origins of OGSM are 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 * Procter & Gamble * KPN * Reckitt Benckiser * Honda * Mars *

MetLife MetLife, Inc. is the 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, annuities, and employee benefit programs, wi ...

* 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.

References

{{Strategic planning tools Business process modelling Strategic management

Purpose

History

Development in the U.S.

See also

References