OGSM Jeep: example
explained in 5 easy steps
Making and executing your strategic plan with OGSM is simple, but not self-evident. Most people look for OGSM examples to learn the ropes of the method. To help you on your way, you can find below the OGSM method explained with visuals on our website, using the Jeep example from the book The One-Page Business Plan.
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Jeep: Objective (what-by-how)
In this example, Jeep has set its objective as “Jeep is the most successful car in the 4-wheel drive premium segment by bringing back the Jeep feeling.”
We can differentiate two parts in this Objective: the ‘what’ (most successful car…) and the ‘how’ (bringing back the Jeep feeling). The two parts are separated by the preposition ‘by’. This is called the ‘what-by-how’ formula and it’s an essential part of working with OGSM.
In the Objective, the “what” should define the ultimate overarching aim of the strategic plan, while the “how” is the primary strategic direction.
Jeep: Goals (what needs to be true)
The Goals are the direct translation of your Objective into quantitatively measurable targets. The question you can use to define these Goals is: what needs to be true if your Objective is to be successfully achieved?
In the example, you can see how both the “what” and the “how” parts of the Objective are converted to Goals. What does “most successful” mean? Jeep has defined this in terms of market share, sales and margin. And what about the “Jeep feeling”? This has been defined in terms of the customer experience: brand preference and recommendations. We always recommend representing your customer somewhere in your Objective and/or Goals, in order to avoid OGSM plans that are too inward-focused.
Jeep: Strategies (up to 5, further elaborating the ‘how')
Your Strategies should further define and elaborate the “how” of your Objective. Strategies can reflect different stages of the customer journey, various strategic dimensions (R&D, customer relations, marketing, etc.) or different stages of the plan (organized chronologically). Here, Jeep has chosen Strategies to further define the “Jeep feeling” in the Objective and help the team concretize what that means and how to ‘bring it back’.
Jeep: Dashboard Measures (direct and indirect measures / indicators)
The Dashboard Measures in an OGSM-plan are basically KPIs that are not core to your Goals, but are still useful to measure progress. These can be divided into two types.
1) The first category consists of ‘lagging’ indicators that are connected to your Action Measures. Within each Strategy, you will deploy some Actions (projects) to execute it. Your lagging indicators are there to set targets and measure the effects of the Actions.
2) The second category are the ‘leading’ indicators. These don’t measure effects, but rather the Actions themselves (processes). In this example, Jeep has defined a Strategy to make Jeep drivers proud of their cars by organizing safaris and driving experiences. The relevant leading indicator here is the number of participants reached through such events.
Jeep: Action Measures (projects to reach your goals)
Finally, every Strategy should be linked to a set of Action Measures. These are usually ‘projects’ that you execute as part of your OGSM plan. The effects and the progress of the projects are measured by the Dashboard Measures in the fourth column of the OGSM. Each project should contribute directly or indirectly to the Goals. Action Measures are linked to a particular Strategy and should be connected to at least one Dashboard Measure, to ensure that you’re checking whether the projects are effective.
The Action Measures is the most frequently updated column of the OGSM plan. Note that Action Measures should be strategic projects: they are actions undertaken to execute the Strategy, not actions undertaken as part of the regular operational cycle!
When we say an Action Measure is a project, that means they should take a bit of time and effort to execute. You shouldn’t have Action Measures in your OGSM for every single meeting or phone call. However, larger projects are difficult for people to execute. That’s why we use Steps to subdivide each Action Measure into smaller tasks that can be easily executed. An Action Measure can be split up into any number of Steps, which can then be assigned to team members and scheduled. By working with Steps, your OGSM transforms from a static plan-on-paper into a dynamic system to help you deliver your goals, literally step by step.
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You can find more details explained about the Jeep OGSM example in the bestseller “your businessplan on page”.
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