OGSM – in detail
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BUILD A SOLID FOUNDATION FOR SUCCESS
BY GROUNDING IT IN INFORMED DECISION-MAKING
history
OGSM originated in the USA, influenced by Peter Drucker's "Management by Objectives" philosophy. It was refined during the post-war economic boom in the USA and Japan, initially by companies like Toyota and Honda. They used it for long-term planning and continuous improvement. Later it was adopted by Fortune 500 companies.
Procter & Gamble, one of the first and most successful users, evolved the system by adding clearer strategic and measure components, making it a powerful tool for aligning organisational efforts.
Today, OGSM is widely used by Fortune 500 companies and SMEs alike, due to its simplicity and focus on translating high-level visions into tangible actions that drive measurable outcomes. Its flexibility also makes it adaptable for different industries, organizational sizes, and project types.
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At Athena Associates, we work with the tailored version;
specifically adjusted to suit Start-Ups,
Entrepreneurs and SMEs.​​
"What by How"
The core of strategy, and of OGSM
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This is the most obvious factor that makes OGMS stand out
from other strategy models or approaches. It is the DNA of strategic thinking:
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What do you want to achieve
and
How will you do that?
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For example: reducing my taxes (what)
BY working with a reputable tax advisor (how)
to become better informed about tax laws and the possibilities they offer.
The ‘What’ element is not the problem.
It is the ‘How’ that’s usually missing, which explains
why many strategies does not get implemented.
A great example was set by John F. Kennedy.
His objective was:
"To make Americans proud of their country again".
But that on its own was too abstract and said nothing about How to achieve it.
To give this vision direction, Kennedy specified the How:
"by putting the first man on the moon."
A tangible, inspiring target that felt like the main objective.
OGSM for everyone
cascading across levels and functions
OGSM is effective throughout all levels of an organisation and across different functions.
A key to this success is how it unifies the entire organisation. It eliminates siloed thinking, creates transparency and leads to a better understanding of what others are working on.
This facilitates collaboration between different levels and functions.
This holistic approach enables the organisation to achieve its objectives more efficiently and effectively.
Cascading is the process of translating the organisation-wide OGSM into tailored versions for departments, teams, and individuals.
This alignment ensures that everyone contributes to the overall objective, encouraging mutual support and a collective effort.
By doing so, it eliminates conflicts of interest and separate agendas, ensuring that each level of the organisation is actively engaged in achieving the shared goals.
Aligning the Objectives of departments with the Strategies of the organisation.
There is a clear line of sight from the organisation's top-level Objectives down to the actions taken by each department and individual, and vice-versa.
Primary-level Strategy
becomes
Secondary-level Objective
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Primary-level Measure (Dashboard)
becomes
Secondary-level Goal
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Secondary-level Strategy
becomes
Primary-level Measure (Action)
The department Strategies are integrated back into the Primary OGSM as Actions with responsible persons and deadlines.
VERTICAL
Across levels
HORIZONTAL
Across functions
This is used when a department plays a role in all strategies of the OGSM.
The What parts of the main-OGSM remain the same, the How parts are changed to reflect the department’s specialisation.
The Finance department or HR are examples where this frequently happens.
An added advantage is that their contribution to the business becomes clear.
REGIONAL
Across borders
Regional cascading ensures that the main, central OGSM is relevant and actionable at the regional level.
It takes into account local market conditions, cultural differences, and specific regional goals.
SWOT
An essential starting point
Strengths – weaknesses – opportunities – threats
This tried and tested analysis is an essential building block for your OGSM.
It provides an in-depth understanding of your business, sector and market.
It guides strategic decision-making by taking potential risks into account.
The insights from the SWOT analysis help navigate the organisation by capitalising on strengths, seizing opportunities, mitigating weaknesses, and avoiding or countering threats.
It ensures that the company's direction is both strategic and grounded in reality.
​Guidance toward the Objective
Use the strengths and opportunities to define what your organization ideally wants to achieve and how to do that.
Consider weaknesses and threats as constraints or challenges that the Objective needs to address or mitigate.
This ensures that the Objective is not just wishful thinking, but a strategic aim that is well-grounded in the reality of your organisation’s current position and its market environment.
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Foundation for Strategies
If the SWOT analysis identifies a strength that aligns well with an external opportunity, the strategy might focus on exploiting this alignment to drive towards the Objective.
Similarly, a strategy can be developed that addresses a weakness in order to avoid a threat.
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Valuing existing SWOTs or the benefits of a fresh perspective
Some clients arrive with a ready-to-use SWOT analysis; however, we typically develop a new, up-to-date SWOT for them.
Following the OGSM mindset, we involve multiple levels and functions within the organisation. This results in a rich collection of multiple perspectives, ensuring a comprehensive, 360-degree review of both the internal and external environments
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We handle the entire process, from explaining what a SWOT analysis entails to gathering and verifying the input—often clarifying common confusions, such as the differences between weaknesses and threats.
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During the initial workshop, we present this as a Master-SWOT to set the stage for the subsequent discussion.
