Skip to content

Decisions Cycles: the Competitive Advantage of OODA Loops

Perhaps the most important strategic concept I have learned over the years is the idea of the OODA loop. That said, I find few people have heard of this concept (unless they have a military background). It’s an incredibly powerful decision-making framework and very worth knowing. 

Observe

OODA was originally described by Air Force Colonel John Boyd in the 1970s. Robert Coram’s book “The Pilot who Changed the Art of War” tells of his life and contributions. And, for a more pop culture connection, the recent movie Top Gun: Maverick based Tom Cruise’s character on John Boyd.

OODA breaks down decisions in to four key elements: 

  • Observe: Assess all available information about the situation
  • Orient: Leverage training, past experience, historical/cultural context, knowledge, and capabilities to develop and evaluate potential courses of action 
  • Decide: Determine and commit to a course of action 
  • Act: Execute the decided course of action 

Each element is important, though I feel like the Orient step deserves some special attention as it is the one that most easily gets lost. 

Even more important than any of the steps, though, is the fact that OODA is a loop. The key to success in an aerial dog fight, Boyd proposed, is the ability to go through the steps repeatedly at a faster rate than your opponent. Why? Because if you can move through the OODA faster than your opponent, they will still be reacting to your last move while you have long since moved on to the next and the next. 

In other words, get inside of your competitors OODA loop, and they just won’t be able to keep up. 

What does this have to do with the business world? Everything. Each element of OODA represents a potential advantage

  • Observe: Be better at assessing business conditions
  • Orient: Be trained to identify better options and opportunities
  • Decide: Choose a better course of action more quickly 
  • Act: More effectively mobilize and execute 
  • Loop: Rethink, course correct, and respond faster 

The most successful company I have worked for mastered what they called integrated business management. They may not have used the term OODA, but they were going through all the steps. This made them more strategically thoughtful, more tactically capable, and better able to weather crises. 

OODA isn’t just about big corporate decisions, though. I once taught OODA loops to a group of restaurant managers. Running a restaurant is a dynamic, fast-paced job. Having the tools and training to quickly assess and address challenges is essential to making the right decision and avoiding pitfalls in the heat of the moment. 

What’s the best way to leverage OODA? Use the framework to understand how the organization functions today. Determine where the organization, function or team gets stuck and eliminate the bottlenecks.

  • Do you have a poor understanding of business conditions (observe)? Devise better business intelligence processes.
  • Is the team not recognizing the best options (orient)? Focus on training and development.
  • Is the organization slow to make decisions (decide)? Eliminate unnecessary bureaucracy.
  • Does the business struggle with execution (act)? Restructure processes and work. 

Focusing on continuously improving and accelerating the decision making cycle makes the business more nimble and competitive. 

At Proprioceptive, OODA is at the heart of how we approach business challenges. If you would like to understand how we can help accelerate decision cycles in your business, go to www.proprioceptive.io or shoot me a note at jeff.sigel@proprioceptive.io.