Rock Your Strategy

Category: OGSM

  • How To Write A Great Objective For A Strategic Plan?

    How To Write A Great Objective For A Strategic Plan?

    A great strategic plan must give clear direction to the business about where it is going and how it will get there. And this starts with a great objective statement.

    The objective is a written, qualitative statement describing the direction of the business by answering the question “where are we going?”. The best objective statements are clear and concise, inspiring and ambitious, yet achievable over the chosen timeframe.

    Packing so much information into just one sentence is difficult. However, writing a great objective statement is critical because everything else in the strategic plan will follow its lead. Particularly when working with the OGSM methodology, it’s important to have a strong objective statement. Here is how you can craft an excellent objective for your strategic plan.

    Follow These 5 Steps To Write An Objective Statement For Your Strategic Plan

    While the objective is a key element of the strategic plan, it is not the first thing you do in strategic planning. Prior to writing the objective statement, first conduct an analysis of the purpose of the business and the situation it is in. The situational analysis should look into the internal and external environment of the business to identify strengths, weaknesses, opportunities and threats. This provides the strategic context for the strategic plan.

    Next, determine the timeframe for the strategic plan. This is important as the objective should describe the future state at the end of this time period. A common time frame for a strategic plan is 3-5 years, but this may vary with company purpose, the realities of the business and its industry. When writing an annual plan, the timeframe is 1 year.

    Armed with the business’ current situation, set out to brainstorm the results you aim to achieve over the specified timeframe. Consider the following questions to guide your thought process: 

    • What are you aiming to achieve over the time period? What does success look like? 
    • What are customers, employees, or other stakeholders going to say about your business?
    • What challenges do you have to overcome? 
    • What processes or competences are critical to your success?  

    Consolidate your thoughts to draft a one-sentence objective statement using the what-by-how method. The what-by-how method described by Marc van Eck & Ellen Leenhouts in their excellent book “The One-Page Business Strategy” structures the sentence into two parts: a ‘what’-part and a ‘how’-part. This ensures that your statement is specific and actionable. Proceed as follows. 

    1. Write the ‘what’-part of the statement optimally in a Verb-Adjective-Noun sentence structure, including at least Verb-Noun. 
      • For example, “drive aggressive growth…” or “improve profitability…” or “become our customers’ first choice…”. 
    2. Write the ‘how’-part as a description of what you will do to achieve the ‘what’-part of the statement. Start the ‘how’-part with “by”.
      • For example, “…by launching new products in the consumer category” or “…by consolidating our tool brands into a leading home improvement business” or “…by putting our customer at the center of everything we do”.   

    See the “what-by-how” method explained in this short YouTube video.

    Finally, review the objective statement and make sure it does not leave anything unwanted or unsatisfied. Ask yourself the following questions. 

    • Is the statement clear and concise? 
      • Is it specific and understandable?
      • Does every word in the statement have a purpose? Delete any ambiguity or redundancy. 
    • Is the statement ambitious and inspiring? 
      • Does the objective stretch the organization? 
      • Does it rally the team and inspire action?
    • Is the statement achievable in the time frame? 
      • Does the objective sound realistic?
    • Is the statement rooted in the realities of the business? 
      • Is the objective congruent with vision and mission of the business? 
      • Does it fit with the business’ internal and external situation? 

    If you have followed these steps, then your objective should be quite specific and spell out in no unmistakable terms what you are aiming to achieve over the chosen time horizon and how you are going to get there. 

    Examples of Objective Statements

    Now that we have discussed how to write the objective, let’s look at some really good examples. 

    Consider a company producing shoe cream that wishes to diversify its offering. The objective of its strategic plan might read:

    “Become the recognized category leader in up-market shoe cream by expanding our existing portfolio of shoe treatment products and developing new, exclusive channels to market.” 

    Or alternatively consider a very innovative mobile phone brand with high growth ambitions. 

    “Double our market share in solar-powered mobile phones by developing more efficient miniature-sized solar panels and expanding our retail footprint in Utopia.”

    Note that each of these examples has a clear articulation of the “what”-part of the objective statement and two clear aspects of the “how”-part. The statements are clear and concise. You can argue that they are ambitious and inspiring (becoming the recognized category leader, doubling the market share). And if you are a company in these respective spaces already, it seems realistic to achieve those objectives. 

    On the flip side, here are some examples of objective statements which might not be effective for strategic planning. 

    • “Deliver growth” 
    • “Make the numbers”
    • “Implement the project”

    Note that all of these statements follow the Verb-Noun sequence and are actionable. However, the statements are not specific, I don’t find them particularly inspiring, and they also do not articulate how we will achieve the objective. How about the following instead? 

    • “Be great by delivering awesome service”
    • “Run the company by empowering the employees”

    Both of these statements follow the “what-by-how” approach. In the first statement, however, it is not clear what “being great” means and “awesome service” is very ambiguous. The second statement does not read like a strategic direction for the future but more of an operational guidance for today. 

    Some of these statements are quite simplistic. I purposefully chose them though to clearly illustrate what a good objective statement looks like. And don’t laugh, but I have actually seen a couple of those latter ones in practice! 

    Important Considerations

    When creating the objective statement for your strategic plan, it is paramount that all stakeholders understand and agree with the objective and the strategic context within which it is nestled. 

    The strategic plan is built to support achieving the objective of the business. If there is doubt in the organization whether the right objective is chosen or if parts of the objective are unclear, then the entire strategic plan might be in doubt. It’s worth investing in making sure that all key stakeholders are in agreement. 

    In addition, note that the objective is not the company vision or mission statement or an open-ended dream. The objective spells out a concrete, attainable result within a specified time frame, e.g. 3-5 years, while the vision may be a longer term aspiration. The objective may however very well be a priority or major milestone in the pursuit of your longer term vision. In fact, for annual business plans, I personally like to think of the objective as being a focus area for the year as I aim to realize my vision.

    Common Mistakes With Strategic Objectives 

    When writing your objective statement, look out for the following common pitfalls. 

    • Objective is unclear 
      • It sometimes runs in human nature that when we think of strategy that we use big words and formulate very ambitious plans. Check for clarity though. Being ambitious and pushing the boundaries of what is possible is great when everyone in the business understands what is expected of them. Large, ambiguous terms may need to be defined or specified if necessary. 
    • Objective includes the ‘what’ but not the ‘how’-part or vice versa
      • The objective statement is most clear and actionable when both aspects of the ‘what-by-how’ approach are considered. Check whether you spot the word “by” in your statement as an indicator whether anything is missing.
    • Objective does not fit with the scope or priorities of the business
      • This might sound obvious but I have experienced this in practice. Choose an objective that does not run counter to the purpose of your business or conflicts with its values, vision or mission. In fact, ensure that the objective is well aligned and contributes to their realization.
    • Objective is not ambitious enough and therefore does not inspire action
      • If the objective of a 3-5 year strategic plan is achievable within 6-12 months, it is not ambitious enough and will not inspire the organization to take action. Challenge yourself to large objectives that require step change instead of incremental modifications. 
    • Objective is a laundry list of projects or initiatives
      • The objective statement should not be a to-do list of current projects. Double check to make sure the objective is not too operational but aims into the 3-5 year future.
    • Objective is too long
      • If you realize that the objective statement is wrapping too many lines and begins to enumerate too many ‘hows’, consider reviewing whether you are setting the right priorities. The longer the statement, the larger the risk that clarity, congruence and realism are lost.

    When following the 5 steps of writing an excellent objective statement above, you should have no trouble at all with avoiding falling into any of these common traps.  

    Where to go from here?

    A strong objective statement is key to the success of your strategy as it defines the direction for your business.

    The objective is the O in OGSM and sets the tone for everything else that follows in the OGSM methodology. Once you have defined your objective, continue here to learn about how to set effective goals for your OGSM.

    If you would like to learn more about the OGSM, continue here. 

    Do you have any questions or feedback? We’d be happy to hear from you via the comment box below.

    References

    Van Eck, Marc & Leenhouts, Ellen (2014.) The 1 Page Business Strategy – Streamline Your Business Plan In 4 Steps. Pearson Benelux.

    Once you’ve nailed your objective statement, the next step is building out your full OGSM. Give yourself the right structure to work from: download a pre-formatted, fully customizable OGSM Template for PowerPoint or OGSM Template for Excel from the Rock Your Strategy shop.

  • What Is OGSM?

    What Is OGSM?

    Have you ever come across the acronym OGSM and wondered what it meant? Here’s what it stands for.

    OGSM stands for Objectives, Goals, Strategies, and Measures. It is a one-page strategic business plan that outlines WHAT you want to achieve and HOW you are going to achieve it.

    The OGSM methodology has been popularized by its deployment at corporate staples such as P&G or Coca-Cola. And you can adopt it for your business too!

    → Want the complete OGSM reference? The Complete OGSM Framework Guide covers all four components in depth, real-world examples by industry, a comparison to OKRs and the Balanced Scorecard, and step-by-step build instructions.

    OGSM: the one-page business strategy

    The OGSM approach is great, because it simplifies a potentially complex concept into a simple framework that cuts through the clutter and shows clearly the choices that form your strategic direction.

    The OGSM framework may look something like this:

    OGSM Template

    The OGSM may be the deliverable of a strategic process that discusses through the objectives, goals, strategies, and measures. Or it may very well facilitate that process. I have done both and I really like the OGSM’s ability to facilitate the process, force choices and capture the output.

    Because of its simplicity and its complete overview, the OGSM is also a great tool to communicate the strategy to employees, the wider organization and other stakeholders.

    Download a pre-formatted, fully customizable OGSM template for Microsoft PowerPoint or Microsoft Excel here.

    OGSM Template for Powerpoint

    OGSM Template for Powerpoint

    Pre-formatted, easy-to-use OGSM template for Microsoft Powerpoint.

    $ 4.99
    OGSM Template for Powerpoint

    OGSM Template for Powerpoint

    Pre-formatted, easy-to-use OGSM template for Microsoft Powerpoint.

    $ 4.99
    Shop now

    Let’s go through each component in turn.

    O stands for Objectives

    The objective is a qualitative statement about your ambition. It describes the future state of your organization. It is the destination of your journey.

    The objective should be quite specific and spell out in no unmistakable terms what you are aiming to achieve over a chosen time horizon. For annual business plans this may be 1 year or for longer term strategies typically 3-5 years.

    Examples might include “Become the recognized category leader in up-market shoe cream” or “Double our market share in coal-powered mobile phones” (even though I am not sure that’s a sustainable segment to target… But more about targeting later).

    Note that this is not a vision or mission statement or an open-ended dream. It may be however a priority or major milestone in the pursuit of your vision. In fact, for annual business plans, I personally like to think of the objective as being a focus area for the year as I aim to realize my vision.

    Regardless of the time horizon, clarity about the objective is absolutely critical as it guides the rest of the OGSM. It is important that all stakeholders understand and agree with the objective.

    As the saying goes…

    “If you don’t know where you are going, any road will take you there.”

    INSPIRED BY LEWIS CARROLL’S ‘ALICE IN WONDERLAND’

    Click here to learn more about how to write a great objective statement for your strategic plan.

    G stands for Goals

    The goals are the quantitative description of your objective. Goals should translate your qualitative objective statement into measurable figures. These are the numbers that represent the future state and help you to measure whether you are successful.

    The objective and goals together describe WHAT you are aiming to achieve.

    Examples of goals are concrete revenue, growth or profitability targets. Other examples may include cost savings, market share or service level targets. In more operational plans this could simply be the number of new customers acquired or a process cycle time.

    The key point is that your goals need to align with the purpose and the timeframe of your objective. If your objective is to achieve break-neck revenue growth, choose goals such as sales turnover, market share, leads or opportunity pipeline. If your objective is to improve productivity, choose return on capital, operating expense ratio or inventory turns for example.

    In order to be meaningful, I like to choose no more than 3-5 goals. These should be the key indicators whether you meet your objective. They do not need to represent every KPI you have on your operating dashboard. Measure what matters. No more, no less.

    Click here to learn more about how to set clear goals for your strategic plan.

    S stands for Strategies

    The strategies are the key initiatives you undertake to realize your objective and achieve your goals. Strategies are the qualitative description of your roadmap to success. These are the choices you make to win.

    Or said differently, if there are “1000 ways to Rome”, then the strategies describe the way you choose to take.

    When it comes to strategies, the word choice is critical. Your time is limited, your resources are finite. You cannot do everything. Besides, the OGSM is a one-page plan. So choosing the most effective, most probable strategies that allow you to succeed is important.

    From my experience, focusing on 3-5 strategies is best. This allows sufficient focus without putting all your eggs in one basket.

    Click here to learn more about how to develop strategies that work.

    M stands for Measures

    The measures describe the concrete action plan and metrics for each strategy. Measures quantify the strategies and clarify who does what by when.

    In fact, I have sometimes heard people spell out OGSM as Objectives, Goals, Strategies and Metrics.

    In their excellent and practical book “The 1 Page Business Strategy”, van Eck & Leenhouts actually split measures into a dashboard and an action plan. This is a very helpful way to ensure that each strategy is executed by implementing the concrete action plan and monitoring the dashboard for progress with chosen key performance indicators.

    I highly recommend the book and following this practice.

    Click here to learn more about how to set effective measures to implement your strategy.

    How to create an OGSM for your business

    When using the OGSM to draft a strategic plan or annual operating plan for your business, follow the O-G-S-M sequence to build up your plan.

    Begin with a strong objective statement that clearly describes the future direction of the business. Then translate the qualitative objective into 3-5 relevant quantitative goals. The objective and goals together describe WHAT you are aiming to achieve.

    Subsequently, make choices about 3-5 strategies that determine how resources are deployed to achieve the objectives and goals. Check that the strategies sufficiently address all goals and are congruent with the objective.

    Finally, for each strategy, create relevant measures that allow you to quantify each strategy and drive implementation. Translate each strategy into 2-3 metrics that define success and draft 2-3 initiatives that help you turn strategy into action. For each initiative, define caretaker and timeline.

    Capture the complete OGSM on a one-page business plan to clearly visualise the business’ priorities and how objectives will be achieved. Read more about creating an OGSM for your business here.

    Ultimately a plan is only as good as its execution. In order to achieve your objective and goals, regularly review progress of executing your OGSM on a quarterly basis. In order to do this well, read about the 11 secrets of successful strategy execution here.

    OGSM Examples

    We discussed that OGSM stands for Objectives, Goals, Strategies and Measures. While the objectives and goals describe WHAT you aim to achieve. The strategies and measures describe HOW you will get there. But what does an OGSM actually look like? Here are a few examples.

    Tonys Italian OGSM
    Tony’s Italian OGSM Example
    Florian's OGSM
    Florian’s OGSM Example

    The OGSM translates the strategic objective of a business, organization or project into practical day-to-day steps. By focusing on your daily action plan you ensure progress towards your longer term goals.

    Want to see how OGSM applies across different industries and business types? We’ve built detailed, worked examples for four business contexts that reflect today’s most common strategic planning challenges:

    • OGSM Example: B2B SaaS — a pipeline analytics company building a strategy from $2M to $8M ARR, covering PLG onboarding, enterprise CS, upmarket expansion, and benchmark content
    • OGSM Example: AI Startup — a Series A document intelligence company transitioning from research-led to revenue-driven with a repeatable sales motion in the legal sector
    • OGSM Example: E-commerce / DTC Brand — a sustainable home goods company building profitable growth by reducing paid acquisition dependence and growing owned audience channels
    • OGSM Example: Non-Profit — an education foundation aligning programme reach, funding diversification, and impact measurement into one three-year strategy
    • OGSM Example: Tony’s Pizza — the classic case study that walks through all four OGSM components in a simple, accessible context

    OGSM Templates

    If you have seen enough and want to get started on your own OGSM, see below for free, downloadable OGSM templates or visit our shop to download pre-formatted, fully customizable templates.

    OGSM Template Bundle — PowerPoint + Excel

    OGSM Template Bundle — PowerPoint + Excel

    Get both the PowerPoint and Excel OGSM templates in one download — pre-formatted, fully customizable, and instantly available. Save 20% versus buying them separately.

    Original price was: $ 9.98.Current price is: $ 7.99.

    OGSM Template Bundle — PowerPoint + Excel

    Get both the PowerPoint and Excel OGSM templates in one download. Save 20% versus buying separately.

    $ 7.99
    Shop now
    OGSM Template
    OGSM Template
    OGSM Template
    OGSM Template

    By the way, the OGSM is not only for large corporations. Its simplicity makes it well suited also for small businesses, entrepreneurs and even non-work projects. Should small businesses even do strategic planning? Click on the link to find out.

    Bonus Tip: Cascading The OGSM

    If you are part of a larger organization with different business units, product lines or functional organizations, you will appreciate that the OGSM can easily be cascaded into departments or teams.

    The set-up of qualitative objectives with quantitative goals and qualitative strategies with quantitative measures helps to translate a corporate strategy into a division’s objective or a product line strategy into a functional department objective.

    The higher level organization’s strategy becomes the lower level organization’s objective. The higher level organization’s measures become the lower level organization’s goals and so on.

    A well-cascaded OGSM thereby ensures that each team’s (or even each individual’s) activities are well aligned with the overall organization’s objectives and goals.

    If you’d like to learn more about OGSM, check out our Dos and Don’ts of OGSM or the 7 Deadly Sins of Business Strategy. More practical tools and templates, workshop guides and book recommendations can be found in our jam-packed resource section. Rock on!

    Get started and download your pre-formatted, fully customizable OGSM template here.

    References

    Van Eck, Marc & Leenhouts, Ellen (2014). The 1 Page Business Strategy – Streamline Your Business Plan In 4 Simple Steps. Pearson Benelux.

    10-Page Strategy Presentation Template

    10-Page Strategy Presentation Template

    Fully customizable strategy presentation template for Microsoft Powerpoint

    $ 14.99
    10-Page Strategy Presentation Template

    10-Page Strategy Presentation Template

    Fully customizable strategy presentation template for Microsoft Powerpoint

    $ 14.99
    Shop now
  • What is Strategy?

    What is Strategy?

    Before jumping into the OGSM methodology, allow me first a note on strategy and delivering results since that is what OGSM helps you accomplish.

    Strategy describes the choices you make to achieve an objective. It is the approach you take to reach your destination. Strategy is about where to play and how to win. It is a roadmap to success.

    Strategy is often perceived as a difficult topic – a high-flying, powerpoint-tossing exercise, rich in important sounding words and often disconnected from substance and reality. It’s perceived to be a game for senior executives and smart consultants and often causes more frustration than clarity and purpose. I know because I’ve been there. In the following I’ll share my experience and best practices.

    Strategy is a roadmap to success

    Everyone knows strategy is important. A good strategy is critical for success. It connects an enterprise’s purpose with its activities. It is a roadmap for action and guides decision making. It creates alignment in the organization and engagement in the team.

    “Begin with the end in mind.”

    Stephen Covey

    Creating a strategy seems like a difficult, resource-intensive process that takes time. And indeed in large corporations that often is the case. But it doesn’t have to be. In fact, it shouldn’t be. A good strategy could be developed on the back of a napkin (Okay, bringing a napkin into the meeting with your board of directors or any stakeholder may not look convincing. But we’ll speak about communicating a strategy later). Or at an offsite retreat. Or with the team in a conference room. And it should fit on a single page. Because strategy is actually quite simple.

    Strategy is nothing else than the choices you make to achieve an objective. It’s the approach you take to win. It’s a roadmap to success.

    Most importantly though, strategy is about making choices. More specifically it is about the choices where to play and how to win.

    For example, a strategy may describe what products to sell and which markets to target to grow your business 20% this year. Or a strategy could outline which customers to approach and what promotional offer to use to close that next sale. Or, quite simply, strategy may be the way you get to work today, choosing the mode of transport and which route you take.

    Strategies are roadmaps that can be created at a corporate level, at a business unit or product/category level or at a tactical point-of-sale level. The point is that strategy is a means to an end, but never the end itself. The strategy is not the goal.

    Too often in my business life I have heard: “our strategy is to make the numbers!” Yes, making the numbers is key. Business is ultimately about delivering results. But that is the goal, not the strategy. “Making the numbers” does not say WHERE to play or HOW to win. Strategy will say HOW to make the numbers.

    Driving strategy implementation

    So a strategy is a plan to achieve something. But it is more than a plan. Strategy is a set of choices that determines if and how you are going to be successful. And success is measured by results. And if you want to deliver excellent results, a plan is still not enough. You need a system for implementation. You need an approach that ensures that action is taken and followed up on. And that’s often the crux.

    “A strategy is only as good as its execution”.

    My former mentor and friend

    Let me take you on a quick journey. How often have you seen a strong strategic plan crafted with great diligence? Many hours of careful market analysis and data crunching go into its preparation. Well-formatted powerpoint slides are created. A raving presentation is given to an excited leadership team. Words of commitment are spoken and a spirited decision is made in pursuit of the identified opportunity and its promising results.

    Only… after its presentation, the powerpoint is filed and everyone goes back to their daily work. You know, that day-to-day grind that keeps us all busy: emails, customer complaints, delayed shipments, and other small catastrophes. And nothing happens. Sounds familiar? Yes, I know. I’ve been there too. That’s why strategies fail.

    A good strategy rallies the team: gain commitment, assign accountabilities, trigger action, drive change, ensure follow through. And that only happens when people know what is expected of them. That only happens when there is absolute clarity WHAT needs to get done and HOW it is accomplished. That only happens when there is a clear action plan, clear caretakers, clear deliverables, clear timelines. Enter the OGSM.

    My aim is to make the topic of strategy approachable and winnable. I want you to be widely successful at creating strategies and executing them to perfection. Whether you are a leader at a Fortune 500, an aspiring entrepreneur, a hopeful young professional or a stay-home-mom with a side hustle, I want to help you win. 

    Because a good strategy is ultimately measured by its results: achieving 20% business growth, closing that next sale, or safely getting to work on time. Because only a good strategy that is well executed will lead to the desired results.

    Having said all that, in the following, I will focus on the OGSM methodology to simplify strategy and deliver results. There are of course many other tools and approaches. After all, many books and articles have been written on the subject. However, in my personal experience I have found that the OGSM approach is the most compelling in leading through a strategy process, making choices and coming up with a one-page deliverable that is easy to understand, easy to communicate and easy to execute.

    Focusing on only one approach may of course have disadvantages. Not everyone may find the OGSM methodology equally appealing. Not everyone may deem it the best fit for them. And that’s ok! If you gave it a try though, I am sure you may find that it is quite applicable to almost any circumstance, any business, any endeavor. It is true that it is not all encompassing. It is not a silver bullet. And it’s usage by itself will not guarantee success. After all, it’s merely a tool. In the end what you do with it still matters the most.

    So let’s get to work! 

    Where can you go from here? Consider checking out our post on 6 steps to develop strategies that delivers results or learn more about OGSM here. Finally, leave a comment below. Would love to hear from you!

    Not sure how to get started? Read this article about using an OGSM template to guide through the strategic planning process.

    References

    Covey, Stephen R. (2012). 7 Habits Of Highly Effective People. New York: Simon & Schuster

    Ready to put your strategy into action? The OGSM methodology gives you a simple, proven one-page framework to make it happen. Download a pre-formatted, fully customizable OGSM Template for PowerPoint or OGSM Template for Excel from the Rock Your Strategy shop — and turn your strategy into results.