OGSM and Lean

What is OGSM?

OGSM is a strategic planning model that helps organisations turn their long-term vision into concrete, measurable actions. It does so with four core components:

1. Objective: the inspiring, long-term ambition of the organisation.
2. Goals: concrete, measurable results that show whether the objective is being achieved.
3. Strategies: the key initiatives and actions needed to reach the goals.
4. Measures: KPIs (Key Performance Indicators) that track progress and steer the plan.

A strong OGSM plan is focused and concise. A common mistake is for organisations to include too many objectives, so that the strategic focus is lost. A good OGSM contains one clear objective with measurable goals, supported by strategic initiatives and concrete KPIs.

Strategic focus, with OGSM as the foundation for success, is essential here.

This is one of the tools you learn to apply in the Green Belt training.

How does the OGSM hierarchy work within organisations?

OGSM works at several levels of the organisation:

• Corporate OGSM: the overarching strategic direction.
• Departmental OGSMs: the translation of the corporate OGSM to specific business units.
• Team or individual OGSMs: operational tasks and projects that contribute to the higher goals.

This hierarchical structure keeps the strategy consistent and aligned. It stops departments from working in silos and creates transparency in execution. Hoshin Kanri is often used to anchor strategic objectives effectively within the organisation. Read more about Hoshin Kanri.

What is Lean and how does it fit with OGSM?

Lean is a management philosophy focused on adding value for the customer and eliminating waste. It fits seamlessly with OGSM, because Lean methods help organisations achieve their strategic goals efficiently.

Lean focuses on:

• Customer value: every process is geared towards creating value for the customer.
• Waste reduction: eliminating processes and activities that add no value.
• Continuous improvement (Kaizen): organisations become more agile through a culture of learning and improving.
• Measuring and steering (PDCA cycle): systematic improvement based on the KPIs from the OGSM.

The basic principles of Lean help organisations work more efficiently and respond better to customer needs. Read more about Lean.

OGSM and Lean in practice: a case study

Situation: A medium-sized hospital set itself the objective of increasing patient satisfaction (Objective). To get there, it drew up an OGSM with three concrete goals:

1. Reduce the average waiting time at the outpatient clinic by 30% (Goal 1)
2. Improve the patient experience by 20% according to surveys (Goal 2)
3. Increase the flow of beds in the emergency department (Goal 3)

Strategy and execution

• Value Stream Mapping (a Lean tool) made clear where the bottlenecks in the process were.
• A Kaizen team introduced small process improvements, such as digitising appointments and cutting unnecessary administrative work.
• An OGSM dashboard helped management monitor the KPIs and keep adjusting course.

Result: Within a year, waiting time at the outpatient clinic fell by 28%, the patient experience score rose by 18%, and flow in the emergency department improved significantly. This shows the power of OGSM and Lean in practice. In healthcare, Lean is used more and more to raise efficiency and patient satisfaction. See how Lean is applied in healthcare via Lean in Healthcare.

The benefits of OGSM + Lean

1. Clear strategic focus: everyone knows what the priorities are.
2. Better collaboration: vertical and horizontal alignment prevents silo thinking.
3. Measurable progress: KPIs and dashboards make results-driven working possible.
4. Efficient execution: Lean helps achieve strategic goals without waste.
5. Continuous improvement: OGSM and Lean encourage a culture of learning and optimising.

Whoever combines OGSM and Lean effectively lays a solid foundation for lasting success. Combining these methods offers both structure and flexibility, so organisations can respond better to changing circumstances.

Take the next step

Want to make your organisation more strategic and more efficient? Sign up for our training ‘OGSM and Lean in Practice’ and learn how to get the most out of these powerful methods.

• Hands-on training with real-world cases
• Insights you can apply straight away
• Guidance from experienced Lean and OGSM experts

Register today and take the first step towards a smarter, more efficient organisation!