Introduction
I have recently started using the OGSM model. This model is a business planning tool that helps define and implement strategic goals. The acronym OGSM stands for Objectives, Goals, Strategies and Measures. I chose this model because it provides insight into organizational strategy in an accessible and clear way. Recently I applied it at Buwalda Rioolservice in Franeker.
About the OGSM model
Objectives (Objectives): These form the basis of the OGSM model and essentially represent an organization's vision and ambition. They concern what the company will achieve in the long term. A good objective is inspiring, guiding and clear.
Goals (Goals): These are the quantitative outcomes that demonstrate the achievement of the goal. These goals should be specific, measurable, achievable, relevant and time-bound (also known as SMART).
Strategies (Strategies): These are the strategic actions you will take to achieve your goals and thus realize your long-term goal and ambition. These strategic actions should be concrete enough to implement, but also flexible enough to adapt to change. For example, if the goal is to increase sales, a strategy might be: "Launch a new product line aimed at environmentally conscious consumers."
Measures (Measures): These are the specific indicators used to measure progress. They are measurable and show whether the strategies are effective in achieving the goals and ultimately the objective. For example, a measure might be: "The number of items sold from the new product line" or "The annual growth in sales."
It is important that all these elements are connected in the OGSM model. The long-term objective (vision and ambition) defines the goals. From these goals flow your strategies (strategic actions). And based on these goals and strategies, you determine how progress will be measured (kpi's). Each part must align with the other parts to form a consistent and effective plan. My tip: check every now and then to make sure everything still fits together!
Case study Buwalda Sewer Service
I recently applied the OGSM model with the management of Buwalda Sewer Service in a number of sessions.
Buwalda Rioolservice is an ambitious company operating mainly in Friesland. Every day they help both B2C and B2B customers with all kinds of sewer problems.
Having successfully applied the OGSM model in the past at my own company Rug Shed in a similar situation, I thought it would be a useful and effective model here as well.
The management of Buwalda Rioolservice had no direct link to the long-term vision and strategy when carrying out their daily work and making various choices in areas such as sales and marketing. As a result, certain choices could not be well thought out or were postponed.
By jointly completing the entire OGSM model based on their specific situation, we gained valuable insights. Management can now see the connections at any time and determine where the focus lies when it comes to implementing the various strategies. We also incorporated the implementation into a concrete action list, which is updated monthly.
Resources
During the journey and writing of this article, I used two sources:
1. On this page you will find a lot of additional information about the OGSM: https: //www.knowledgefornature.nl/news/uitleg-ogsm-met-voorbeeld/ .
2. And on this website I downloaded a SWOT template: Managementmodellensite.com