Organizations today face a myriad of challenges, from rapidly changing market dynamics to the demands of digital transformation. To navigate this complex terrain and ensure sustainable growth, companies require a well-defined roadmap that bridges their long-term vision with actionable steps, hence the need for strategic planning.
In previous article, we delved into enterprise architecture for digital transformation, a crucial aspect of aligning an organization's IT infrastructure with its strategic goals. However, it's important to understand that strategic planning and enterprise architecture are not isolated concepts; rather, they should be intertwined to achieve desired outcomes effectively.
While enterprise architecture often deals with the immediate needs of ongoing digital projects, strategic planning casts a more expansive vision, extending years into the future. In this article, we will explore the pivotal role of strategic planning, particularly when initiated with the OGSM (Objectives, Goals, Strategies, and Measures) framework, in catalysing digital transformation. By combining strategic planning with OGSM framework, businesses can seamlessly bridge the gap between their long-term vision and the actionable steps needed to turn that vision into reality. Whether you're a start-up looking to establish your market presence or a seasoned corporation seeking to stay ahead of the competition, understanding and implementing the OGSM framework is your key to strategic excellence.
What is Strategic Planning?
Strategic planning is a process in which an organization's leaders define their vision for the future and identify their organization's goals and objectives. It is akin to mapping out a journey, setting the direction and destinations that an organization aims to reach in the years ahead. This process goes beyond the immediate horizon of projects and initiatives, focusing on long-term objectives and the overarching mission and vision of the organization.
Strategic planning establishes the "what" and the "why" of an organization's journey, making sure it's aligned with market trends, customer needs, and competitive landscapes. It is used to set priorities, focus energy and resources, usually representing mid- to long-term goals with a life span of 3 to 5 years. The aim is to create a plan that is easily shared, understood, and followed by various people, including employees, business partners, and investors.
Benefits of Strategic Planning
Provides Clear Direction
Aligns all levels of the organization around common goals.
Encourages Communication & Collaboration across different departments.
Instilled a Shared Sense of responsibility
Makes your Organization Proactive rather than Reactive
And many more…
OGSM Framework Unveiled
OGSM is a Strategic Planning framework that helps organizations connect future strategic aspirations to the daily activities of the company.
Strategic Planning in 3 SIMPLE steps
Where do we want to go?
How do we get there?
How do we measure success?
Continuous improvement:
How did we do?
How can we improve?
Where do we want to go?
Strategic Planning is a collaborative process
The process of defining objectives and goals should be collaborative and involve key stakeholders within the organization. The following groups are typically essential contributors:
Executive Leadership Team
Senior Management, Including representatives from different functional areas (e.g., marketing, operations, finance)
Understanding the global environment and emerging trends
It is about gaining insights into the broader business environment, including economic, social, technological, political, and environmental factors. This phase is crucial because it helps identify potential opportunities and threats that may influence your organization's strategic decisions.
What are the current economic trends and how might they affect our industry?
What technological advancements or disruptions are emerging, and how can we leverage them?
How are social and cultural shifts influencing customer behaviour and demands?
What political or regulatory changes could impact our operations or market access?
What environmental factors should we consider to support sustainability initiatives?
Understanding company’s strengths and weaknesses
It aims to evaluate the resources, capabilities, and overall performance of the organization to gain insights into what it does well and where it needs improvement. Understanding the company's strengths and weaknesses is essential for setting relevant, achievable, and well-aligned objectives and goals.
What are our organization's key strengths and advantages?
What unique resources or capabilities do we possess?
What unique strengths give us a competitive edge in the market?
What are the areas where we are currently facing challenges?
What resources or skills do we lack compared to our competitors?
How do we get there?
Developing a Vision
Build a vision statement that outlines the desired long-term state of the organization. The "Develop a Vision" phase is about capturing the aspirations and dreams of the organization. It should be motivating and inspiring, guiding the organization's journey towards a brighter future.
What do we aspire to be as an organization in the next 5, 10, or 20 years?
How do we envision our impact on our customers, industry, and community?
What unique contributions do we want to make to society?
What innovative solutions or breakthroughs do we want to be known
How will our success contribute to the growth and development of our employees
Vision statement example:
"To be a global leader in sustainable palm oil production, promoting positive environmental and social outcomes, fostering innovation in the industry, and collaborating with stakeholders, including local communities and environmental organizations to create a more sustainable future for the palm oil sector."
Setting Objectives and Goals
Objectives in OGSM represent the high-level, aspirational, and long-term goals that the organization aims to achieve. These objectives typically define what the organization wants to become or accomplish in the future, align with the vision statement. Objectives should be:
Clear and concise
Resonates and engages your target audience
Based on business reality
Aims beyond the present state of the business
Goals Break down the long-term objectives into more tangible and short-to-medium-term goals. These are the milestones that contribute to achieving the overall objectives. Choose 3 to 6 goals that are actionable. Unlike your objectives, your goals should be short-term targets that define progress within a set time frame.
Goals should be SMART:
Specific: Goals should be clear and easy to understand
Measurable: Goals should be quantifiable and trackable
Attainable: Goals should be ambitious but not unrealistic so they don’t de-motivate your teams
Relevant: Goals should be connected to business’s reality and industry
Time-based: Goals should be set within a time frame
How do we measure success?
Formulating Strategies and Measures
Strategies
What are the Programs, initiatives or major activities we will undertake to accomplish the identified corporate goals and objectives.
Each business division or department should have its own strategies, measures, and action plans to help reach the company’s objectives and goals.
Choose 3 to 5 strategies for each department and functional areas and prioritize those that give you the biggest chance to succeed.
Measures
Establish key performance indicators (KPIs) or metrics to measure progress and success in achieving the Strategies. A strategy should have no more than 3 measures.
Measures are not the same as goals. Measures are linked to specific strategies and measure specific areas of the organization, while goals represent a comprehensive picture of the organization's performance and direction.
Example
Objective 1: Become a Global Leader in Sustainable Palm Oil Production
Goal 1: Achieve RSPO Certification for 100% of Palm Oil Operations by 2024
Strategy: Implement sustainable practices across all palm oil operations, meeting RSPO standards and requirements.
Measures:
Obtain RSPO certification for 100% of palm oil mills and plantations by the end of 2024.
Reduce the use of chemical fertilizers and pesticides by 25% within the first two years of implementing sustainable practices.
Increase the adoption of Integrated Pest Management (IPM) techniques by 50% across all plantations within the first year.
How did we do? How frequently should we monitor and track progress?
When using the OGSM methodology as s Strategic Planning framework, it is important to conduct:
monthly reviews to track the execution of action plans and monitor progress on measures.
In-depth quarterly reviews to obtain updates on the progress of each strategic initiative and its impact on goals and objectives.
Conclusion
In conclusion, strategic planning is the compass that guides organizations through the complexities of today's business landscape, and the OGSM framework serves as the key to unlocking its full potential. By aligning long-term vision with practical objectives, goals, strategies, and measures, businesses can confidently navigate the path to success. As digital transformation becomes increasingly vital, the used of strategic planning has never been more critical.
Ready to take your organization's strategic planning to the next level? Reach out to us now to schedule a consultation and discover how our guide you towards a future of success. Contact us today!