The OODA loop (observe, orient, decide, act) is a strategic decision-making tool designed to support the decision-making process when all the facts, or relevant information, aren’t available. OODA was originally created by Colonel John Boyd to support US Air Force fighter pilots when in combat. Essentially, the OODA loop provides a way to identify more choices for yourself while narrowing the available options for your competition.
While the OODA loop is popular among decision-makers in organizations across the globe, it is sometimes subject to criticisms surrounding its efficacy. Should decision-makers continue using OODA as part of internal processes? Or is OODA outdated and in need of a refresh?
The OODA loop, despite its popularity, does face some common criticisms. At its core, the OODA loop is designed to assist decision-makers in acting quickly as a situation is developing. It offers decision-makers the opportunity to reflect on the information that they have available.
The OODA loop encourages users to trust their instincts by bringing structure to this process - especially in limited timeframes or more emotionally charged situations. However, OODA removes a lot of nuance in order to make a decision quickly and can be considered an oversimplification of decision-making.
Raw facts and data are crucial to the OODA loop. This should be combined with knowledge of the strengths you have within your organization and team to achieve the best results. Learnings from retrospective meetings help to guide future processes and combat any potential oversimplification.
When originally designed, the OODA loop was for individual use rather than collaboratively - as the fighter pilots were working solo. Now, when defining strategy, this is more of a collaborative approach. Having a variety of views and opinions is vital when forming a cohesive strategy in order for it to be comprehensive. While collaboration may not have been part of the initial OODA ideology, its adaptability means it still can be used by teams rather than individuals only.
The OODA loop, despite being praised for its speed, assumes that there is ample time to reflect on data and the decision as a whole. There are occasions when action must be taken immediately before passing through the observe, orient, and decide stages - and use gut instinct. The model is highly flexible, offers strategic agility, and is applicable to a variety of different scenarios, but sometimes more information is required to make an informed decision.
OODA loop was originally developed in the 1950s, for a very specific context, without knowing that its use would evolve over time. It has since been adopted by organizations across various industries with many different needs. When OODA was originally designed, the situational context for its use was much clearer. However, in a business setting, this might not be so obvious.
To successfully use OODA as part of your strategy planning, you will need to take some extra steps and frame the problem you’re trying to solve. OODA, while simple, is praised for its adaptability and flexibility in strategy. Don’t be afraid to tweak the overall approach as this will help you in getting better results.
Ahead of initiating the OODA process, consider:
Look at your business’ mission, vision, and values. Identify all the relevant context that will support you in reaching a decision. This will also bring clarity to the situation by filtering out any unnecessary information that could be clouding your judgement. Relating this to the foundations of your organization will improve focus and (hopefully) the overall decision outcome. By taking additional time to reflect, you will be better positioned to create a strategy that will guide you through the OODA process.
A simple example, that we can all relate to, would be hunger. We observe that we are hungry, we orient by finding food, we decide what we want to eat, and then we eat. This shows that OODA really can be an instinctive, yet structured, process - with many different applications!
Another example could be a competitor releasing a new product. You observe the new product release, and note that it might impact your sales. You then need to orient on how to respond to this, ideally reducing the number of available options for your competitor. You could also release a new product, or increase the current marketing around your own products and organization - even considering changing the messaging to resonate better with your audience.
In this scenario, you need to ensure that you have more options available to you, so you can effectively react to the moves of your competitor. Each potential decision will bring a different set of results. As you will have initially framed the problem in line with your overarching strategy, the potential outcomes will guide you to choose the best course of action.
OODA creates several feedback loops within the process, allowing you to regularly evaluate as more information becomes available. Remember, OODA focuses on the amount of time taken to reach a decision while forcing your competition (or an internal blocker) to react.
In spite of its criticisms, OODA is still applicable to many of the different scenarios we face on a daily basis. While its original purpose may have evolved over time, so have the external factors that impact the decisions we make, meaning OODA might require small changes to make it more relevant for your organization. The OODA process itself is simple in nature, but for good reason. Adopting OODA as part of your internal processes can bring structure, and formalize the way you make strategic decisions within your organization.
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