THEORY 95


BOYD’S OODA LOOP

Use to enhance your decision-making skills.

John Boyd was a US Air Force Colonel who developed the OODA model as a decision-making tool in air combat. The model was quickly picked up by managers in other sectors.

Illustration

Source: Adapted from Clayton, M., Management Models Pocket Book (Management Pocket Books, 2009).

Observation: Collect up-to-date data from as many sources as possible. But remember that all decisions are based on incomplete information.

Orientation: Determine what the data means. Use a combination of analytical and intuitive responses to update your understanding of what’s happening.

Decision: Determine what course of action you need to take to get the best result.

Action: Follow through on your decision.

The model is cyclical and requires managers to evaluate the outcome of the action and repeat the orientation, decision-making and action stages until the desired result is achieved. Boyd stresses the importance of not using the model in a static fashion but as a dynamic, fast, reactive model. He suggests that the faster pilots moved through the model, the more likely it is that they would get a positive result.

HOW TO USE IT

  • Unlike in air combat there is seldom the need for instantaneous decisions in business. Therefore, use Boyd’s loop but leave the issue of speed to one side.
  • Start by identifying any opportunities or threats you face. You may already have an example on your desk or you could use a SWOT analysis to identify one (see Theory 67). Gather as much data as you can about the issue but beware of the laws of diminishing returns.
  • Remember, no matter how accurate your data is, it will always be incomplete and your brain will filter the information further (see Theory 93).
  • Don’t be afraid to use your intuition as you try to make sense of the situation. This isn’t guesswork; intuition or tacit knowledge is something that develops as a result of past experiences and learning and resides deep in your subconscious until you need it (see How to get the most out of this book).
  • Recognise that any decision you make is really only your best guess of what’s right at a given moment. Keep refining your decision and subsequent actions by repeating the OODA loop until you are happy with the result.
  • Before you use the OODA loop on something significant test the theory in a safe environment.

QUESTIONS TO ASK

  • How difficult do I find it to make decisions? Do I take into account all the information available to me or are my decisions based on gut reaction?
  • Do I need to change how I make decisions?
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