Any Power Tool is a valid and adequate enabler if, and only if, it derives from a coherent strategy & operational deployment cascade.
A Power Tool has to be:
1) SIMPLE
(simple is simply better)
2) STANDARDISED
(standardisation aids understand across the board)
3) SYNCHRONISED
(synchronicity means timely and team linked)
A very effective way to design the right toolkit in line with the company's objective is to structure it within the so-called O.G.S.M. (Objective, Goals, Strategies, Measures).
OGSM: is a Strategy Planning Tool: it stands for Objectives, Goals, Strategies and Measures (it was developed in Procter & Gamble). It allows us to understand Strategy in the context of other important planning elements like Objectives, Goals, and Measures.
- Objectives are what we want to achieve, the “big win” we are seeking to produce. Almost always has profit and leadership.
- Strategies are how we will achieve our Goals. A set of one or more very specific decisions about how we will allocate resources to accomplish an objective. Provide our competitive advantage with customers and consumers.
- Goals are the specific accomplishments we are seeking to deliver within a certain time frame as we move toward our Objective. Good Goals are specific, measurable and include a target date.
- Measures provide numerical answers which quantify our progress in implementing our strategies. Also allow benchmarking.
OGSM model (by Archpoint) [398 Kb]
O.P.M. Key Design Elements:
- Organization Structure:
Organization Chart, Functional Responsibility
- Tasks/Job Descriptions:
Individual Responsibilities linked to the Company Plans
- People Behavior and Capability:
Cultural and Skills to support tasks
- Information Sharing & Process:
Simplify process to increase "speed-to-market"
- Decision Making Process:
Decision making process based on business leadership
- Reward and Incentives System:
Individual objective and the company objectives are "inseparable"
