Why Investment Boards Need OGSM to Align Their Portfolio Companies
In the world of investment management, clarity, alignment, and accountability are everything. Yet, one of the most overlooked gaps in multi-entity groups and investment portfolios is the lack of a structured communication framework between parent companies and their subsidiaries. This gap often leads to strategic misalignment, inefficiency, and missed opportunities for value creation.
That’s where OGSM comes in.
What is OGSM?
OGSM stands for:
- Objective – What do you want to become?
- Goals – How will success be measured?
- Strategies – How will you get there?
- Measures – What actions and KPIs track progress?
The Parent-Subsidiary Challenge
Investment companies often manage multiple child entities, each with different leadership, market maturity, and operational challenges. While financial reporting is standardized, strategic communication is often inconsistent or ad hoc. This creates a range of problems:
- Boards can’t easily compare how each child company is driving value.
- Strategic priorities of subsidiaries may drift from group objectives.
- Promising initiatives may go unnoticed due to poor articulation.
How OGSM solves this
By requiring every child company to fill out an OGSM, the parent company gets:
- Consistency: Each entity communicates strategy in the same structured way.
- Clarity: Strategies and actions are linked directly to measurable goals.
- Comparability: Boards can benchmark progress across companies.
- Accountability: Progress is tracked using aligned KPIs.
Real-World Use Case
Imagine a holding company with three subsidiaries:
- A mature logistics firm,
- A fast-growing e-commerce startup,
- A turnaround case in renewable energy.
- What each company aims to achieve.
- Whether their goals ladder up to group strategy.
- Which actions are underway and whether they’re on track.
- Where to focus support, funding, or intervention.
Why It Works at Board Level
OGSM isn’t just for managers — it creates a board-ready view of strategy execution. Directors can quickly see:
- Whether the leadership team has a plan.
- If the plan is realistic and measurable.
- How capital and resources are being aligned to goals.
- What success will look like and when.
Implementation Tip
Start by requiring each portfolio company to complete an OGSM for the next financial year. Provide a simple template and short onboarding session. Over time, integrate OGSM reviews into board meetings and quarterly business reviews.
OGSM Is the Language of Growth
In an investment environment where time is money and clarity is power, OGSM offers a disciplined way to understand — and influence — how your companies will grow.
It’s not just about reporting strategy. It’s about creating a shared language of execution between investment boards and operational teams.
Want help getting started with OGSM across your investment group?