How to write a successful main company strategy? Use the OGSM model!

At several companies and multinationals I had the privilege to create the overall company strategy by the OGSM model. For me, an OGSM model is a great way to write the main company strategy on one page and hereafter to implement this within the organization.

It is also a wonderful tool to realize an omni-channel strategy within the organization. A company without a clear strategy and measurable goals cannot clearly tell their story to the employees (and your target group). With this blog I would like to share my experiences concerning the OGSM model.

Be more efficient and effective with an OGSM model

I have seen companies that did use the OGSM model that are much more efficient compared to others. The reason for this is that the strategy is more aligned within the company and the focus is clear including a KPI. An important issue is that you need to write the OGSM model with the board and management team, so the main stakeholders are involved in writing the strategy in quality and quantity. It is without any question that a strategy is needed to give a company a heartbeat to the future. The world and your target group are continuously changing, so your company needs to be awake and aware. Your target group makes small steps, and they discover the possibilities of new technologies, ‘Internet of Things’ and new devices they use.

Let’s take some time and let me explain more about the OGSM model:

The OGSM model explained

A company without a clear strategy and measurable goals cannot clearly tell their story to the employees (and your target group). In fact, a company without a strategy is steerless. As mentioned above, an OGSM will support you to set a clear and authentic objective. The goal of an OGSM model is that it will give you a good strategy for the next three years.

Let me give you some background information to the OGSM model and please do use the image below (Figure 1 OGSM Model) as support.

  • The Objective needs to be clear and authentic – it explains why your company exists in one line. This line should always be remembered by the company (for example, if you wake them up in the middle of the night).
  • Goals are the quantitative milestones (Turnover, Margin, Yield, NPS, etc.).
  • The Strategy needs to be written in a clear sentence to realize the quantitative Goals as mentioned before.
  • And last but not least, you need Measures to get a feeling of the business KPI and the steps that need to be realized. And indeed these Measures do have a link to the quantitative Goals.
ogsm-model-visua_06091016l

Figure 1.

The main OGSM model is written on one page. The strategy process will bring you to write the main OGSM page to the other departments of your company because we do not believe in Silos anymore. In short, every department will have one OGSM and they are all connected to the main OGSM model. It is not a top-down process but more of an integration with the stakeholders (departments) to realize an OGSM model. Each stakeholder/department needs to write their part in the sub-OGSM which is linked to the main OGSM. This way, you can realize an accurate integral strategy. A golden tip is to make use of an independent consultant/SPOC to steer the total process. This will lead to a great internal process where internal interests will not be mixed or forgotten.

How to embed the strategy within the organization?

After you finalize the OGSM strategy you need to embed this within the company. The strategy, the goals and the measurements are KPIs that need to be realized by the teams.
So besides a process to realize an OGSM model, you need to communicate this very well to embed it and make it effective in the internal communication process. How do you make sure that the model will be adopted by the management, colleagues and teams who need to realize this?

The challenge of a good internal/external communication

It is an interesting challenge to clearly communicate the changes in a way that your employees will listen and understand what the new way of working will be like. Of course, change in a common structure has a great impact on their way of working and their behavior.

It is common that you will not align everyone within the company – some will be against it, some will tell you they agree but in the end they do not, and some will not listen to this strategy (change) because they have a lot of reasons to believe that it might fail. To communicate these changes is an interesting challenge and awareness of the authority figure is a must have.

Authority figure helps with your communication

The Authority figure is an efficient tool to get a better understanding of the way of communication. Everyone will interpret information differently during a presentation, meeting and conversation. The reason behind this is simple: it has to do with the moment, the area, the attitude and even the emotion of the person. So, the way of talking directly influences the way of listening. That makes the authority figure a very interesting model and tool to realize a recognition in the way of communication.

Let me give you more detailed information about this in my next blog concerning the Authority figure.

Questions?

If you have any questions concerning an OGSM model (for example, how to integrate this within the organization, how to implement your touchpoints KPI, how to be omni-channel and how to communicate this correctly within the organization), do not hesitate to contact me – I am more than willing to support.

Reactions

  1. Vo Cuong

    Dear Mr.Jeroen de Graaf,

    I’m interested in your short article here.
    Please explain me more about relationship between OGSM and KPI. From OGSM we can wite out KPIs? Or from KPI (from high-level manager of company, we write the OGSMs for our team (department)?
    Thanks so much (becauce the first time I found a article explain nearest to my question. Regards. Vo Cuong

  2. Jeroen de Graaf

    Dear Vo Cuong,

    Many thanks for your interest and reply.
    In your OGSM you will add your company Goals (KPI).
    in the measurement you go more in detail. In other words you write the KPI more per department .

    The next step when you wrote your General OGSM.
    You will write a sub OGSM per department.
    In that case the Strategy of the General OGSM will become your department Objective.
    The measurement will become your department Goal (KPI).

    hope this will clarify your question.

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