The OODA loop in decision-making process usage

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Hello dear fellow BAs!)

We are living in a changeable and challenging business world!

We need to have or create a very reliable and efficient approach for the best decision-making process. Decisions matter, but efficient decisions are critical!

In this short article, I want to share some useful thoughts about the announced topic in my one-pager post of the OODA loop intelligent usage in decision-making practice.

This approach was invented and described by John R. Boyd. It was developed with the usage of practical ideas created at different times by Jean William Fritz Piaget, Ludwig von Bertalanffy, Thomas Samuel Kuhn, Michael Polanyi, Norbert Wiener, and Gregory Bateson [1 - 3].

The main challenges in the decision-making process are:

1. Uncertainty.

2. Necessity to make fast decisions.

3. Quick adaptation to changes and case circumstances.

The main idea of the OODA approach is a quick and correct orientation for making optimal decisions and taking effective actions.

The proposed approach allows one to be ready and informed enough to make any decision based on an existing case or work situation at any time.

The core of the proposed approach [1, 3 - 7].

Methodology basis, we can see the 4 blocks of cyclic activities related to each other that form a universal decision-making algorithm.

1. Observation. This stage involves gathering information and ensuring that you have the means to do so effectively within an organization. This could be observing your competitive landscape, market factors, or political and economic conditions.

2. Orientation. Contextualize what you know, acknowledging that your observations will be filtered through your experiences and knowledge. Boyd saw this as the most crucial stage, and it’s also where you consider your capability and capacity.

3. Decide. At that stage, you make a decision based on the orientation phase outcomes. Which could be an active choice or a deliberate inaction or pause. As Boyd put it, “Decisions without actions are pointless. Actions without decisions are reckless.”

4. Act. This final stage is where decisions are executed, and all previous activities form a test of the success of the whole loop. The next is a queue of feedback into the observation stage, which is executed through the experimental cycle again.

Attention please, it’s worth noting that stages can be skipped and that doing nothing and waiting to gather more information, is a valid action.

The main advantages of OODA loop usage in decision-making practice are:

1. Controllability of each stage of decision-making practice. A clear understanding of what and when should be done in practice.

2. Structured vision of the whole design-making loop.

3. Adaptability. On each decision-making stage, you can use the most suitable best practices for each block of activities on OODA loop stages;

4. Clear focus and understanding of what should be done as a main accent of each stage.

5. Ability to experiment and get quick feedback.

6. Actions and gaps transparency in the decision-making process.

What else does the OODA loop approach tell us?

The accuracy and efficiency of decision-making are always developed iteratively, so mistakes are a natural part of our learning and adaptation process! Always.

The universality of the application of the OODA loop approach implies the possibility of the existence of the phenomenon of "Intelligent (or useful) failures" in practice.

Practitioners, exploring the possibilities of using the OODA loop, created a cycle of formation of Intelligent experimentation [1].

I found that very useful for us)

The following diagram demonstrates the value creation effect of using an iterative approach [1]

How and why should we implement the OODA loop in practice?

1. Smart and precise implementation of OODA stages and activities! We shouldn’t be dogmatic about any approach! OODA loop is an adaptable approach, with enough flexibility on the activities and best practices levels.

2. All stages with needed activities should be implemented in practice step by step, and you can focus on their efficiency, and possible gaps at any time, and improve them.

3. With improvements you will grow the personal ability to think strategically and efficiently step by step. You develop your skills to see the holistic picture and think strategically. Also, the same skills will be developed and applied at the team or group level.

4. OODA loop approach implementation helps you to conduct great communication inside and outside the team. You always will have a great analytical basis for the best arguments in communication.

5. OODA loop approach usage we can provide a transparency basis for all decision-making participants and build real trust.

Dear colleagues please share your thoughts does this approach could be useful for you, where, and why?)

Let`s have some practical discussion about that!)

Thank you a lot and have a great day!)

P.S. Used and useful sources:

1. Psychological Safety - https://psychsafety.co.uk/john-boyd-and-the-ooda-loop/
2. https://commons.wikimedia.org/w/index.php?curid=3904554
3. https://iterum.co.uk/ooda-loops/
4. Observe, Orient, Decide, Act: A rapid, adaptive decision-making framework. Written by Helen Wale and reviewed by Jeff Schmidt - https://corporatefinanceinstitute.com/resources/management/ooda-loop/
5. Creating Futures with Scenario Building and John Boyd’s OODA “Loop”. Lee Anderson, KPMG Innovation Lab at KPMG US
6. OODA Loops Understanding the Decision Cycle. By the Mind Tools Content Team - https://www.mindtools.com/a3ldgz1/ooda-loops
7. The OODA Loop - https://thedecisionlab.com/reference-guide/computer-science/the-ooda-loop