It is one thing to develop an overall business strategy which is meant to guide your company into the future – it is another thing to put that strategy into action. The gap between planning and action is one that many businesses never manage to cross successfully. With that in mind, it may help your company to use some tools which are meant to help you bring your strategies to life in a meaningful way. One such tool is the OGSM framework. By using this system in your own company, you will no longer find yourself simply thinking about your strategies. Instead, those strategies will come to life in the day to day operations of the business.
As you would guess, OGSM is an acronym which stands for the four portions of this model. Those four pieces are as follows –
While the OGSM framework has been around for many decades, it remains just as relevant now as it was back in the 1950s when it was first introduced. To gain a better understanding of how this framework can help you put your corporate strategies into action, please view the content below.
Everything starts with an objective when using this model. What are you trying to accomplish with your business? In addition to setting out goals, your objective should include a mention of how you intend to reach your ultimate destination. For instance, a good objective would be more than just saying ‘our business is going to be the most profitable in the market’. All businesses want to make a lot of money, so that kind of objective really does little to nothing to set you apart from the field.
To improve on that objective, you could use something along the lines of ‘our business is going to be a market leader thanks to high-volume sales and low price points’. With this version, you are highlighting not only your desire to be the best, but also how you intend to reach that position. Rather than selling high-end expensive goods, you are going to aim to sell a large volume of more affordable items. Knowing this is how you plan to move forward, you can continue on with the rest of the framework.
It is at this stage where you begin to break your objective down into smaller goals. Your goals, above all else, need to be quantifiable. It is useless to set goals which cannot be easily measured and graded, as you will never know if you are successful in your pursuits. For each goal you set, confirm that there are measurable standards by which that goal will be evaluated at a given point in time.
Simple sales figures can be an easy example of this part of the framework. You may state for one goal that you wish to sell 10,000 units of a given product in the next 12 months. That goal should be extremely easy to measure, and it has a timeline built right in. As the year wears on, you can track your progress against that goal and make adjustments as necessary.
One single goal really isn’t going to set you on a course for long term success, so be sure to establish at least a few goals which encompass everything that your company is trying to achieve. Some of these will likely be sales based, but others may be based on things like the innovation of new products, cost reductions, and more.
It follows logically that the next step in this process is to determine the strategies you will use to meet the goals which have been established. To continue the example from above, you will need a plan in order to hit your sales goal of 10,000 units in the coming year. What kind of marketing techniques are you going to employ? How are you going to produce all of those units to meet the demand that you hope to find in the market? Your strategies need to be fully developed if you are going to hit your goals as time moves on.
It is important to note that goals are never achieved by accident in business – they are achieved through careful planning and hard work. That planning is taking place at this stop in the framework. By taking the time to build on comprehensive strategies which can be enacted on a day to day basis, you will be putting an actionable plan into effect which can steer you toward your long term vision. Don’t fall into the trap of setting goals and simply hoping that they come true. Take this step in the framework seriously to give your goals the best possible chance of success.
You need to constantly measure your success against your goals and your strategies. What measurements are you going to use to decide if your overall strategies are being effective? In the case of the example we used earlier, it was stated that the company was going to attempt to compete in the low-cost arena. With that in mind, this sample company may want to compare sheer number of unit sold against other companies in the market. When trying to win on volume rather than margin, a company certainly needed to be moving more than its fair share of units. The way you measure your success is going to determine how you adapt to make smarter decisions in the future.
The OGSM framework is an easy-to-use system which can give you a clear picture of how you would like to move your business forward. The overall strategies that have been put in place for your company may never ‘hit the ground running’ without the use of something like OGSM. Acting as a bridge between planning and action, this framework model can help you to see real progress on a day to day basis. Take the time to work on all four levels of this framework and your business will be far better prepared to follow through on its long term vision.
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