A Startup-Centric Implementation of OGSM at Coastline Academy

The OGSM framework (Objectives, Goals, Strategies, and Measures) is most famously implemented at Proctor and Gamble, and other fortune 500 companies, where planning cycles are longer and alignment across massive hierarchies are especially challenging. However, in a startup environment a good goal setting framework is critical to create longer-term focus in a changing environment. At Coastline, we have adapted the OGSM framework to suit our needs, and the resulting process helps maintain alignment and focus across our departments. I will share the three key adaptations that helped us get the most out of OGSMs without becoming overburdened by the process itself. But first, a quick overview of OGSMs.

OGSM stands for Objectives, Goals, Strategies, and Metrics. Objectives are action statements, like “Hire instructors” or “Increase vehicle utilization”, and Goals are related numbers and dates, like “300 by May 2024” or “80% by Q3”. Each Objective-Goal pair is supported by a number (we like 3-5) of Strategy-Measure pairs, which follow the same format as Objectives and Goals. Then each Strategy-Measure pair becomes the Objective and Goal for the next level. Alright, let’s get to our lessons learned.

Three levels is usually good enough

Like OKRs, OGSMs are structurally nested. Each OG has a set of SMs, and then in the next level down, each SM becomes a OG, which has a set of SMs. The temptation can be to keep going down to 5, 6, or more levels mapping out the finest details. However, that becomes overly burdensome when it comes to monthly reviews. It also escalates to become it’s own work. Why not use that time to get the job done? OGSM is a great goal setting framework, but a sub-part task management framework. We have found we are much more efficient when using OGSMs to around 3 levels, and then using task management tools like Asana or Github to manage the work that contributes to the lowest level Strategies and Goals.

Objectives can be financial or non-financial

As a mission-oriented company, we have a purpose beyond financial results. While OGSM is typically applied as a framework to drive activities that roll up into financial objectives, it works well as a tool for creating alignment around activities that roll up to any kind of objective. We apply it to objectives like “Be a great place to learn for our customers” with the Goal “maintain NPS>80”. In doing so, we can align priorities around mission-based objectives that don’t necessarily have a direct throughline to financial goals.

Change when you need to

Organizations with tens of thousands of employees might be able to set OGSMs for the year with few or no changes other than scoring. When you only have a few hundred employees, and a rapid rate of growth, things change throughout the year. It would be foolish to stick to pre-set OGSMs just for the sake of it when priorities change. We find it works best to set OGSMs before the new year starts, score our progress each month, and then check in quarterly on what change we need to make. That way, we ensure that our OGSMs reflect our priorities, and keeps everyone focused on the right things.

To summarize, I’ll leave you with this: a goal setting framework like OGSM is a tool that you can use to achieve results as a team, but it shouldn’t be a goal in and of itself. At the end of the day it’s about the results. Resist the temptation to dogmatically rigorously apply a process that becomes a project for it’s own sake. We have found that we get the most out of the process when we keep it lightweight and give ourselves the flexibility to make changes when the business needs them. At Coastline, OGSM is one of many tools to achieve focus and productivity.