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Objectives, goals, strategies and measures (OGSM) is a goal setting and action plan framework used in strategic planning. It is used by organizations, departments, teams and sometimes program managers to define and track measurable goals and actions to achieve an objective. Documenting your goals, strategies and actions all on one page gives insights that can be missing with other frameworks. It defines the measures that will be followed to ensure that goals are met and helps groups work together toward common objectives, across functions, geographical distance and throughout the organization. OGSM's origins can be traced back to Japan in the 1950s, stemming from the process and strategy work developed during the occupation of Japan in the post-World War II period. It has since been adopted by many Fortune 500 companies. In particular, Procter & Gamble uses the process to align the direction of their multinational corporation around the globe. [1] [2] [3]
The OGSM framework forms the basis for strategic planning and execution, as well as a strong management routine that keep the plan part of the day-to-day operations. It aligns the leaders to the objective of the company, links key strategies to the financial goals, and brings visibility and accountability to the work of improving the capabilities of the company. Due to the concise format (usually one page) and simple color-coding to signal progress, OGSM allows for quick management by exception of any underperforming activity or underperforming (key) performance indicator. And finally, it is simple, robust and developed as a team. [4]
OGSM is designed to identify strategic priorities, capture market opportunities, optimize resources, enhance speed and execution, and align team members. [2]
Research indicates that the OGSM method was developed by Procter & Gamble, but the verifiable origins of OGSM remain unclear. [5]
Brought from Japan to corporate America in the 1950s, the OGSM concept was used initially by car manufacturers. Today, larger corporations, including Fortune 500 companies, employ this framework to keep their workforces centered on goals and objectives. Ideally, this tool attempts to express in one page what a traditional business plan takes 50 pages to explain. [6]
The OGSM has been employed by multinational corporations around the globe, including but not limited to: [3]
Procter & Gamble (P&G) provides an example of how these ideas translate into organizational practice. A.G. Lafley, the CEO of P&G, uses the OGSM tool (as illustrated in OGSM § Considerations) to provide a framework for organizing the discussion about goals and strategic direction. [1] [7] [8] While notably implemented at fortune 500 companies, startups [9] and SMBs also use OGSMs to create strategic alignment.
A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals. It also describes the nature of the business, background information on the organization, the organization's financial projections, and the strategies it intends to implement to achieve the stated targets. In its entirety, this document serves as a road-map that provides direction to the business.
A chief executive officer (CEO) is the highest officer charged with the management of an organization—especially a company or nonprofit institution.
Strategic planning is an organization's process of defining its strategy or direction, and making decisions on allocating its resources to attain strategic goals.
In the field of management, strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization's managers on behalf of stakeholders, based on consideration of resources and an assessment of the internal and external environments in which the organization operates. Strategic management provides overall direction to an enterprise and involves specifying the organization's objectives, developing policies and plans to achieve those objectives, and then allocating resources to implement the plans. Academics and practicing managers have developed numerous models and frameworks to assist in strategic decision-making in the context of complex environments and competitive dynamics. Strategic management is not static in nature; the models can include a feedback loop to monitor execution and to inform the next round of planning.
Umbrella branding is a marketing practice involving the use of a single brand name for the sale of two or more related products. Umbrella branding is mainly used by companies with a positive brand equity. All products use the same means of identification and lack additional brand names or symbols etc. This marketing practice differs from brand extension in that umbrella branding involves the marketing of similar products, rather than differentiated products, under one brand name. Hence, umbrella branding may be considered as a type of brand extension. The practice of umbrella branding does not disallow a firm to implement different branding approaches for different product lines.
Enterprise risk management (ERM) in business includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives. ERM provides a framework for risk management, which typically involves identifying particular events or circumstances relevant to the organization's objectives, assessing them in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring process. By identifying and proactively addressing risks and opportunities, business enterprises protect and create value for their stakeholders, including owners, employees, customers, regulators, and society overall.
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Technology strategy is the overall plan which consists of objectives, principles and tactics relating to use of technologies within a particular organization. Such strategies primarily focus on the technologies themselves and in some cases the people who directly manage those technologies. The strategy can be implied from the organization's behaviors towards technology decisions, and may be written down in a document. The strategy includes the formal vision that guides the acquisition, allocation, and management of IT resources so it can help fulfill the organizational objectives.
Strategic communication can mean either communicating a concept, a process, or data that satisfies a long-term strategic goal of an organization by allowing facilitation of advanced planning, or communicating over long distances usually using international telecommunications or dedicated global network assets to coordinate actions and activities of operationally significant commercial, non-commercial and military business or combat and logistic subunits. It can also mean the related function within an organization, which handles internal and external communication processes. Strategic communication can also be used for political warfare.
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A chief strategy officer (CSO) is an executive that usually reports to the CEO and has primary responsibility for strategy formulation and management, including developing the corporate vision and strategy, overseeing strategic planning, and leading strategic initiatives, including M&A, transformation, partnerships, and cost reduction. Some companies give the title of chief strategist or chief business officer to its senior executives who are holding the top strategy role.
The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. It specializes in a wide range of personal health/consumer health, personal care and hygiene products; these products are organized into several segments including beauty; grooming; health care; fabric and home care; and baby, feminine, and family care. Before the sale of Pringles and Duracell to Kellogg's and Berkshire Hathaway, respectively, its product portfolio also included food, snacks, beverages, and batteries. P&G is incorporated in Ohio.
Strategy implementation is the activities within a workplace or organisation designed to manage the activities associated with the delivery of a strategic plan.
Joel Benenson is an American pollster and consultant known for his role as a strategist for Barack Obama's 2008 and 2012 presidential campaigns. He was the chief strategist for Hillary Clinton's 2016 presidential campaign.
EPG Model is an international business model including three dimensions – ethnocentric, polycentric and geocentric. It has been introduced by Howard V. Perlmutter within the journal article "The Tortuous Evolution of Multinational Enterprises" in 1969. These three dimensions allow executives to more accurately develop their firm's general strategic profile.
The Fuld-Gilad-Herring Academy of Competitive Intelligence is an educational organization bringing professional training to the field of competitive intelligence (CI). Established in 1996, the academy has expanded its training to thousands of managers from 58 countries and six continents at its campuses in Cambridge, MA and Brussels, Belgium. The academy is the only CI-dedicated institution to be externally accredited by the International Accreditors for Continuing Education and Training (IACET). It grants the Competitive Intelligence Professional (CIP) certification based on a 9-course program, including a course in ethics and a pioneering course in business war gaming. To be certified, managers must complete the required coursework and pass a certification exam. To accommodate managers whose main interest is in using CI tools and managers working as CI professionals, the academy offers two levels of certification: a basic CIP-I, and an advanced CIP-II. The academy is currently the largest training institute in its field.
James R. Stengel is an American businessman, author, professor and public speaker. He served as the global marketing officer of Procter & Gamble from 2001 to 2008. Stengel is currently the president and CEO of The Jim Stengel Company, where he advocates for ideals-driven businesses and brands. In December 2011, he released his first book, Grow: How Ideals Power Growth and Profit at the World’s Greatest Companies.
Deborah Ann "Deb" Henretta is an American businesswoman. She is a senior adviser for General Assembly, a global education and technology company, as well as SSA & Company, a New York-based management consulting firm. Prior to her current position, she retired in 2015 from a 30-year career at Procter & Gamble, culminating in becoming one of only two top-level women executives for the consumer goods organization.
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Melanie "Mel" Healey is a Brazilian business executive. She is the former group president for the North American division of Procter & Gamble.
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