Quick and Clear Decision-Making: OODA Loop Method

The OODA Loop is a high functioning strategic framework that can be deployed across an organisation in myriad situations.

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By applying the simple concepts of Observe, Orient, Decide, and Act to decision-making, data-driven leaders can gather pertinent information to make a flexible contextual decision.

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How Does It Work?

The OODA Loop Method is based on a central principle that changes can be made when and if data becomes available. Originally developed in the mid-20th century as a military strategy, the process is intended to be responsive, adaptive, and supportive of time-sensitive decisions in situations where all data may not be available.

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With its focus on urgency under pressure, the OODA Loop Method has become an extremely useful tool for corporate environments with complex, competitive pressures and ramifications. When coupled with data gathered through machine learning, generative AI-led functions, and strong information management, the OODA loop can provide a distinct and measurable competitive advantage.

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The OODA loop is a system that can address both large and small issues in multiple departments within a data-driven organisation. Finance, marketing, client-focused departments (such as sales or customer service), and engineering can all benefit from the timely actions determined using the framework. Key sources of information to drive an OODA loop include client-centered data (e.g. buying behaviour) and organisational information (e.g. financial benchmarks, and market analysis).

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Putting it in Practice

The fundamental practices of the OODA loop are embedded in the acronym. Decision-makers must first Observe the existing conditions, particularly focused on the elements that can (or should) drive change from both an internal and external perspective. Data is a principal component of this step as it can determine the impact of emerging influences or the performance of an organisation over time.

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Second, leaders must Orient to the specific nature of the successful or failed project or structural facet. This step relies on communication with a larger team to gather information on what led to the current moment and to ensure that every member of the team has an opportunity to understand and contribute to the decision. The deeper the data, the better equipped companies will be to disseminate the context.

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Following observation and orientation, the OODA loop asks leader to Decide. Using the best possible information and situational analysis, a conclusion is drawn. In some cases, the best way forward is to make no decision at all. In others, data show that there is a need to pivot, adjust, or upend existing practices.

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Finally, teams and leaders can Act. The closure of the loop allows for movement forward in a clear, data-driven way that acknowledges real and potential challenges and provides ample opportunity for revising the decision should new information arise.

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In fast-paced environments where external competitors exist such as business and technology, the OODA Loop Method is a tried and tested framework that delivers data-driven solutions that incorporate flexibility and collaboration. It is an efficient system for making rational and informed decisions in a timely way.

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About the Author

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Dean Stancevski is a Senior IT Consultant and the founder of DS Technology Consulting Services, offering on-site and remote technical IT services to private and public organisations. A creative problem solver, Dean specialises in helping small- and medium-sized organisations grow by providing customised services to streamline IT systems and operations.