A corporate strategy is not just a piece of paper that sits in a drawer somewhere. It is the cornerstone of your business and everything should be based on it. We'll introduce you to 3 strategic models that you can apply in your company.
At first glance, OGSM is a simple but extremely useful strategy that can be applied to almost any business department or even the company as a whole. Its huge advantage is that it is concise - it usually fits on one page - yet very specific.
It originated in Japan in the 1950s and has since been used by many multinational brands such as Procter & Gamble, Honda and Coca-Cola.
The acronym comes from the words: objective, goals, strategy and measures, and the trick is to set specific business goals you want to achieve within a certain time period, along with very clear metrics. These will be used to measure whether you are getting closer to meeting your goals.
Divide your paper into 4 sections, with each section representing one of the pillars of this business strategy, and complete them as per the instructions below.
First define your mission. What is your business mission? What is your vision? Be as specific as possible.
→ Example: We want our products to appeal to professional athletes and people who play sports in their spare time. In this way, we make sport more enjoyable and easier for those who have previously been put off."
→ Tip: Read also about how to benchmark in practice.
Set measurable (ideally numerical), long-term, medium-term and short-term goals for the business that you want to achieve. Again, try to be as specific as possible. "We want to be the best." is a nondescript and hard-to-measure goal.
Pay most attention to the medium-term goals - ask where you want to be in 3 years. These goals are the best to work with because they are close enough, but also contribute to the overall vision.
It will take up the largest section on your paper. Break down the answers to these questions here:
Establish clear indicators (KPIs) to measure whether you are succeeding in meeting your objectives. For example, this could be turnover rate, number of leads, social media engagement rate, and so on.
→ Tip: Create OGSM separately as a marketing or business strategy.
Another strategy you can use is BMC. The authors introduced it in 2010 in the book "Business Model Generation".
BMC breaks down a company's business strategy into nine key components that you should have clearly defined. You should also be able to fit the answers to all the questions on one paper, but feel free to expand more.
→ Tip: See also the 4P and 7P marketing mix and its importance to the success of the business.
The Balanced Scorecard is a strategic framework introduced in 1992 by Robert Kaplan and David Norton. It helps to monitor the achievement of business objectives in four basic areas of corporate strategy:
Each of these areas has equal weight in the company and should therefore be represented by the same number of set goals. Their achievement is then given equal priority. Remember that goals must be SMART: specific, measurable, acceptable, realistic and also time-bound.
Whichever strategy you choose, or even a completely different one, stick to it (but keep measuring results and revise and update your strategy as needed). Make sure all employees know it and monitor compliance regularly. Then you will be successful.
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