OGSTM2023-01-13T13:06:50+00:00

OGSTM

From ideas to strategy with the OGSTM framework

The OGSTM framework finds its origins in the idea of Management by Objectives, originally developed by Peter Drucker in the 1950s. This idea was repurposed by Japanese auto companies, and is since embraced by Fortune 500 businesses like Coca-Cola and Procter & Gamble, and other multinationals such as Honda, Triumph International and Mars. Despite tectonic changes in the landscape of modern business, the OGSTM (or the OGSM) framework remains not only relevant, but quintessential for every business that aims to achieve big results through a strategic approach.

“Good ideas need good strategy to realize their potential.”

Reid Hoffman

Co-founder of LinkedIn

An introduction to the OGSTM approach

ogsm definition ogsm meaning

What does OGSTM stand for?

OGSTM stands for Objectives, Goals, Strategic Choices, Tactics, and Measures. Sometimes, you might also hear about the OGSM framework, which refers to Objectives, Goals, Strategic Choices, and Measures. Both these frameworks are similar in their approach of helping execute a plan from idea to action, with one key difference: the OGSM framework does not entail mapping out the Tactics, which are the key to achieving the desired results from a strategic initiative.

Who uses the OGSTM framework?

The OGSTM framework is essentially an action plan framework. Hence, anyone who oversees the execution of multimodal plans should leverage the OGSTM approach to achieve their desired results. It has been used at the C-level to direct board conversations, by entrepreneurs to build new businesses, and by project and product managers to define their action plans.

What does the OGSTM framework help me with?

Bringing visionary ideas to fruition is not an easy task. Business owners, CEOs, directors, and entrepreneurs often map out the steps they and their organization needs to take to realize an action plan on excel sheets or on whiteboards. Seeing (and showing) a clear connection between the original vision, goals, strategic moves, and the results is necessary to align stakeholders and actions with a common vision at all times. The OGSTM framework helps with this by ensuring the execution of strategies in a systematic fashion.

How can I leverage the OGSTM approach?

OGSTM is essentially a framework that can be used to guide action plans on paper, excel sheets, or word documents. However, today’s businesses and startups often struggle with centralizing their strategy execution processes with multiple stakeholders digitally. As a result, using a digital tool to guide strategy execution with the OGSTM approach can keep all stakeholders on the same page at all times.

The OGSTM framework: a closer look

The framework outlined here can help you understand the key steps involved in guiding strategy execution along the OGSTM approach. Read about these steps in detail.

ogsm framework ogsm template ogsm method ogsm model

Define your Objectives

Your objectives constitute your long term vision for your business – in other words, what your business want to achieve and how it will do that. It should be something that stakeholders can emotionally connect to, and at the same time, practical and viable. Here are a few examples of objectives that businesses anchor their long term strategies to:

Set SMART Goals

To realize your vision, you will need to set goals that will help you and your team advance towards this vision. That’s why, you must set Specific, Measurable, Attainable, Relevant, and Timebound (SMART) goals, that may be financial or non-financial.

Identify your Strategic choices

Strategic choices are high-level moves that you make in order to achieve your goals. These choices impact the direction that a business takes over time in a significant manner. For this reason, it is crucial to make calculated strategic moves based on evidence and industry experience.

Objectives examples:

– To become a market leader in women’s sportswear in West Europe in 5 years by bringing fashion and utility together.
– To sell one million subscriptions to a digital magazine by being the first to bring technology news to the readers.

Goals examples:

– Build a mobile app for my magazine and onboard ten thousand users over the next five months.
– Develop a portable EV bike prototype over the next year and exhibit it in the next round of Madrid trade show
– Raise a hundred thousand dollars to fund the expansion of your digital magazine over the next quarter

Strategic choices examples:

– Build a team of two developers experienced in cloud and DevOps who will build a mobile application for my retail store in the next two months.
– Minimize technical debt of existing digital banking products operational in North America by hiring a fractional CTO.

Leverage the right Tactics

Tactics refer to the granular steps that drive a specific action throughout the organization. Each of these tactics will be owned by a particular stakeholder, who will be responsible for ensuring timely execution of these steps.

Identify KPIs for Measurement

Strategy execution neither progresses nor stalls unless it is measured. For this reason, you must identify Key Performance Indicators (KPIs) that will help you measure the success of each strategic move.

Tactic examples:

– The fractional CTO will build a remote-first delivery model and measure productivity of the developers based on outcomes over the first two months.
– The DevOps lead will implement data standards and enterprise policies by automating governance for development teams using native cloud tools.

Measurement examples:

– Brand health KPIs: Sentiment, mentions on social media, or bounce rate
– Financial KPIs: Net profit margin, operating cash flow, or cash conversion cycle

The OGSTM framework: a closer look

The framework outlined here can help you understand the key steps involved in guiding strategy execution along the OGSTM approach. Read about these steps in detail.

ogsm framework ogsm template ogsm method ogsm model

Define your Objectives

Your objectives constitute your long term vision for your business – in other words, what your business want to achieve and how it will do that. It should be something that stakeholders can emotionally connect to, and at the same time, practical and viable.

Here are a few examples of objectives that businesses anchor their long term strategies to:

– To become a market leader in women’s sportswear in West Europe in 5 years by bringing fashion and utility together.
– To sell one million subscriptions to a digital magazine by being the first to bring technology news to the readers.

Set SMART Goals

To realize your vision, you will need to set goals that will help you and your team advance towards this vision. That’s why, you must set Specific, Measurable, Attainable, Relevant, and Timebound (SMART) goals, that may be financial or non-financial.

Here are a couple of examples:

– Build a mobile app for my magazine and onboard ten thousand users over the next five months.
– Develop a portable EV bike prototype over the next year and exhibit it in the next round of Madrid trade show
– Raise a hundred thousand dollars to fund the expansion of your digital magazine over the next quarter

Identify your Strategic choices

Strategic choices are high-level moves that you make in order to achieve your goals. These choices impact the direction that a business takes over time in a significant manner. For this reason, it is crucial to make calculated strategic moves based on evidence and industry experience.

Here are a few examples of strategic choices:

– Build a team of two developers experienced in cloud and DevOps who will build a mobile application for my retail store in the next two months.
– Minimize technical debt of existing digital banking products operational in North America by hiring a fractional CTO.

Leverage the right Tactics

Tactics refer to the granular steps that drive a specific action throughout the organization. Each of these tactics will be owned by a particular stakeholder, who will be responsible for ensuring timely execution of these steps.

Take these two tactics for example, which will help realize the first strategic choice mentioned above:

– The fractional CTO will build a remote-first delivery model and measure productivity of the developers based on outcomes over the first two months.
– The DevOps lead will implement data standards and enterprise policies by automating governance for development teams using native cloud tools.

Identify KPIs for Measurement

Strategy execution neither progresses nor stalls unless it is measured. For this reason, you must identify Key Performance Indicators (KPIs) that will help you measure the success of each strategic move.

Here are a few examples:

– Brand health KPIs: Sentiment, mentions on social media, or bounce rate
– Financial KPIs: Net profit margin, operating cash flow, or cash conversion cycle

From strategy to execution with excellence

The OGSTM approach is an essential tool to help you execute your strategy to success. It is leveraged by small businesses and hyperscale projects across all industry domains to realize the commercial potential of ideas. We have helped multiple clients execute their strategies with the OGSTM framework – and we can help you too.

Food For Thought

“Leaders have three fundamental responsibilities.

They craft a vision, they build alignment, and they champion execution.”

Anonymous

(but we’ll assume it was a woman)

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