OGSM Supermarket: example
explained in 5 easy steps
Creating and executing your strategic plan with OGSM is simple, but not obvious. Most people search for OGSM examples to learn the method. Below, we guide you through the process of creating an effective OGSM plan in five simple steps, using a supermarket as an example.
Would you like to access this example in your free OGSM Software workspace and play around with it? Let’s explore!
Supermarket: Objective (what-by-how)
The first step is to write your objective, using the “What-by-How” format. Begin by defining what you want to achieve, which in this case is to “become the first choice for local shoppers with an excellent range of products”. Then identify the key aspect that you need to address to achieve your objective, which is “prioritizing local suppliers”. This step helps you establish the “doing” side of your objective.
The objective should have the overarching goal of the strategic plan in the goal section, and the general strategic direction in the doing section.
Supermarket: Goals (what needs to be true)
Now you can turn that ambitious language into measurable numbers by asking yourself, “What conditions must be met to become the preferred chain for local supermarkets?”
In the case of the supermarket, the objective (becoming the preferred chain) is measured in profit, market share, and the percentage of anticipated regional residents. The doing (prioritizing local suppliers) is measured in the presence of local products and the number of local products sold. It is recommended to incorporate your customer into your objective and/or goals so that your OGSM is not too internally focused.
Supermarket: Strategies (up to 5, further elaborating the ‘how')
You will include your key “doing” strategy in several underlying strategies. Limit yourself to five strategies to keep everything on one page. There are several ways in which strategies can be developed. For example, they can be based on the different stages of the customer experience, different strategic aspects such as R&D, customer relationships, marketing, etc., or the different phases of the plan, organized in chronological order.
Supermarket: Dashboard Measures (direct and indirect measures / indicators)
This is about KPIs that are not the most important for your goals but still useful in measuring progress. Two types of indicators can be distinguished:
The first category consists of ‘lagging’ indicators that are connected to the Action Measures. Actions (projects) are deployed within each Strategy to execute them. Lagging indicators serve to set goals and measure the effects of the Actions.
The second category is ‘leading’ indicators. These do not measure the effects but rather the Actions themselves (processes). As an example, the supermarket has defined a strategy to prioritize local suppliers by providing employees with training and mentoring. The goal is to make the local community stronger. The relevant indicator for this is the customer experience score.
Supermarket: Action Measures (projects to reach your goals)
When creating Action Measures, you can use the same “What-by-How” format to describe your Actions. Each strategy in an OGSM plan must be linked to Action Measures, which are usually executed as ‘projects’ and contribute to the stated goals. The effectiveness and progress of these projects are measured by dashboard Measures in the fourth column of the OGSM plan.
Action Measures are linked to a specific strategy and must be connected to at least one dashboard Measure to monitor the effectiveness of the projects. It is important to remember that Action Measures are strategic projects that are not part of the regular operational cycle. The column with Action Measures is the most dynamic column of the OGSM plan and must be updated regularly to track progress and to ensure that they contribute to the overall goals of the organization.
You can then break down the Action Measures into smaller steps to make them more achievable.
When we say that an Action Measure is a project, it means that it takes some time and effort to execute. You shouldn’t have an Action Measure for every meeting or phone call in your OGSM. However, larger projects are harder to execute. Therefore, we use steps to break down each Action Measure into smaller tasks that can be easily executed. An Action Measure can be broken down into any number of steps, which can then be assigned and scheduled to team members. By working with steps, your OGSM transforms from a static plan on paper to a dynamic system that helps you achieve your goals, literally step by step.
Want more examples?
Clicking on this button you can check more OGSM examples!
Do you want to have this OGSM example in your own free trial workspace?
Do you need some help with your OGSM or want to book a training session?
On our website you can find the best examples for your industry. We have shown a couple of example but we have a whole range of examples we can share with you. Send us a request to email@example.com to get a detailed example uploaded in your trial workspace
On the OGSM Software website you will find OGSM examples explained in a unique way. By visualizing the relationship between the different elements of OGSM people get a much better understanding on how OGSM actually works and how to apply the logic themselves.
Start a free trial in OGSM Software and ask for the Supermarket example to be included. You will get more insights in the underlying data and how the OGSM is built up. It will also give you access to other views like a timeline, a kanban and a performance dashboard.
OGSM Software is a cloud-based tool designed for effective strategy design and execution. It’s secure, flexible and user-friendly, and can be used by any organisation that wants to take their performance to the next level. Try it for free here!