Consider you're a business owner operating under challenging conditions caused by a global pandemic. The unpredictable environment forces you to make important decisions under considerable uncertainty. This predicament, common in crisis situations, is where the OODA Loop, a decision-making model, becomes an invaluable tool.
Developed by Air Force pilot and military strategist John Boyd, the OODA Loop helps individuals and organizations navigate through uncertainty, adapt to change, and make decisions efficiently.
Observe: Your restaurant is closed due to a lockdown, and you've noticed a growing number of people ordering food delivery.
Orient: You analyze this behavioral shift and recognize a potential opportunity in the delivery service market.
Decide: You decide to transition your business model to offer takeaway and delivery services primarily.
Act: You remodel your kitchen for high-efficiency meal prep, introduce an online ordering system, and collaborate with delivery services.
After acting, the cycle begins anew as you observe the impact of your actions, adjust accordingly and further refine your business strategies.
The OODA Loop thrives in dynamic and unpredictable situations—it embraces the ever-changing nature of our environment rather than constantly playing catch-up. It's a continuous cycle of learning and adapting, fitted perfectly for scenarios where time is a critical factor.
The application of the OODA Loop in your business enables nimble and assertive decision making. Amidst crises, it helps to ensure that your business, like an adept fighter pilot, can swiftly course correct, continuously adapt and decisively overcome challenges.
While flying a training mission, a fighter pilot experiences a sudden system malfunction. To react effectively, the pilot should first:
React based on standard procedures without assessing the situation.
Observe the current circumstances and interpret the information before acting.