The OODA Loop (observe, orient, decide, act) is a strategic decision-making model, created by US Air Force Colonel John Boyd. It was designed to assist in making informed decisions when all the facts or information aren’t readily available.
The decide phase of the OODA loop is centered around using the observations and orientations (situational awareness) collated in the previous stages. In the decide stage, you will evaluate this information and use it to decide your immediate next steps, and a high-level course of action. The orient phase, in particular, will guide the decide phase as you (should) now have a comprehensive understanding of how you are able to respond to the current scenario.
In the decide phase, you are forming a hypothesis of how your challenge will be resolved. The actions you take will depend on how familiar the situation is. For example, if you are in unfamiliar territory you are more likely to lean on new information. If the situation is familiar, it’s probable you will use past experiences to form your strategy.
From insight to action
Every decision we make has an impact, whether direct or indirect. Decisions give us direction — they shape progress and bring outcomes. If we wait for things to happen naturally, we might never make new discoveries or achieve what we’ve set out to do. Knowing and understanding strategic goals is the first step in making good decisions.
Gathering insight forms a critical part of the decision-making process. This means decisions take a more informed and structured approach, rather than simply guessing. However, the beauty of the OODA loop is the iterative process enabled by feedback loops. OODA can be used even when not all the information we need is available. Insight will still guide this decision-making process, but with allowances that the situation may change in the future. The more insight you have, the clearer your path will be when making a decision. This allows you to be receptive to change and exercise strategic agility when the time comes.
Common decision-making pitfalls
Making decisions can be both a straightforward and complex process — how do you know if you’re making the right decision? This is especially important in high-stakes or time pressured environments.
Be wary of common decision-making pitfalls. These can hinder progress and introduce blockers to your project or change initiative.
Accountable ownership
If clear roles are not defined within a project, it’s possible that employees may feel less invested or naturally assume that another team member is responsible. This could cause the project to move slowly or in the wrong direction. Without defined roles you may also risk only building consensus, rather than choosing the ideal course of action. Decision-making should be as objective as possible, using situational awareness and insight.
Accountable ownership encourages alignment in decision making. Stakeholders will feel they have a purpose throughout the process and their contributions are valued. Using decision-making frameworks can help with defining roles and responsibilities, keeping everybody accountable.
Analysis paralysis
There are occasions where too much insight or analysis can be a bad thing, known as analysis paralysis (or decision paralysis). This is where we overthink, or spend too long debating, all the intricacies of a decision. There might be too much information for us to sift through, or there is no insight that stands out in comparison to the rest.
Analysis paralysis can limit progress. Firstly, because you are unable to make a decision. Secondly, because there is a lot of fear surrounding the decision. By using the OODA loop methodology to reduce the amount of options, structure the process, and practicing quick decision making (like its original conception) you can reduce the risk of analysis paralysis occurring throughout your initiative.
Bias
Bias can impact a decision, even if you’re not aware of it. We all use our individual experiences, opinions, and world-views to help us make (what we feel is) the right decision. In a business context, this could mean subconsciously making a poor, or incorrect, decision based on a minor detail.
It isn’t always possible to completely ignore bias, as bias can unknowingly develop. When making decisions, it’s important to try and remain objective. This includes placing more importance on facts rather than opinions, and ensuring that our insights gathered in the observe stage present a variety of information. Being aware of bias is critical to limiting its effect on decisions.
Lack of focus
Without having a clear goal or general structure in your decision-making process, it’s easy to lose focus of what really matters. For example, as you progress towards making a decision there may be new, interesting information that comes to the forefront and changes your direction. Not sticking to the actual problem, and getting distracted, will cause you to make an unsuitable decision.
Defining goals at the beginning of a project can help to retain this focus. It’s important that, at each stage, you revisit that goal and compare it to current progress. This will keep you on track and ensure you achieve what you set out to do.
Frameworks for strategic decisions
There are multiple frameworks available for you to use in strategic decision making. Here’s a few of our favorites.
DACI
DACI is a framework that comprises four key roles, typically stakeholders who are involved in the process. It simplifies the decision-making process by defining clear roles and responsibilities for the duration of the initiative.
Driver: Responsible for organizing stakeholders, gathering information, and determining the scope of the overarching decision
Approver: Who will make the final decision
Contributor(s): Those who have subject matter expertise or can offer other valuable information
Informed: Who might be affected by the decision
DACI is particularly useful when beginning a new project or initiative. It has more of a general application, in comparison to other decision-making frameworks, and focuses on the ongoing process of ownership. This is essential when dealing with complex or high-stakes decisions. DACI can also be used for supporting cross-functional projects, resource allocation, or other process improvements.
RACI
RACI, while similar to DACI, focuses on the individual roles involved in making decisions and follows more of a project management approach. Like DACI, it also consists of four key roles:
Responsible: Who will complete the work or task
Accountable: Responsible for the success or failure of the project or task
Consulted: Stakeholders chosen to provide input, advice, or feedback
Informed: Who needs to be kept up to date with project progress
RACI matrices are typically used for specific projects where task execution is essential. They can also be used in project planning or for defining milestones and roadmaps. It gives stakeholders distinct responsibilities which can simplify complex projects. RACI also encourages cross-functional collaboration and improves operational efficiency.
RAPID
The RAPID framework outlines five essential roles involved in decision-making, while simultaneously streamlining this process. RAPID will help to define the ‘what’, ‘who’, ‘how’, and ‘when’ throughout a project.
RAPID roles include Recommend, Agree, Perform, Input, and Decide. These distinct roles clarify the type of feedback you receive from each stakeholder, enabling you to leverage their expertise and make an informed decision. It reduces ambiguity and keeps stakeholders accountable during the process, improving effectiveness in decision making and organizational performance.
Strategy Cards: drive alignment and action
Strategy cards, built using the OODA methodology, guides users through all four stages of the OODA loop. It provides a guided way to capture and organize insights. This means teams can contribute observations, flag gaps, and stay aligned as a project or initiative develops. It is a digital system, with each card focusing on a specific input, framework, or decision.
In the decide stage, project stakeholders will be able to get a quick oversight into current progress — understanding what has led the team to this point in the decision-making process. Strategy cards keep team members accountable, informed, and aligned on overall direction.
What comes after decide?
You now have your observations, orientations (situational awareness), and hopefully at least a high-level idea of what actions you need to take. The decide stage shapes all of this information, evaluating it based on priority and relevance, bringing it together ready for the next phase of the OODA loop: act.
