The OODA loop (Observe, Orient, Decide, Act) is a four-step approach to decision-making that focuses on filtering available information, putting it in context and quickly making the most appropriate decision while also understanding that changes can be made as more data becomes available. The strategy is applicable at an individual level as well as an organizational level. It is particularly useful in scenarios where competition is involved and where the ability to react to changing circumstances faster than an opponent leads to an advantage. Show
Many modern environments can be described as volatile, uncertain, complex and ambiguous, or VUCA. Surviving and winning in this type of situation rests upon making better decisions. However, improving the quality of decision-making is something most organizations fail to do. For example, if a company continues to make choices that do not see a positive return, they are failing to learn from their experiences. The OODA loop acknowledges this habit and provides an approach help make improvements. Now applied to a variety of fields, the OODA loop was developed in the mid-20th century by the military strategist, US Air Force Colonel John Boyd. It was initially used to train solders to make time-sensitive decisions rapidly when there may not be time to gather all the information. The goal of the strategy was to execute the OODA loop process more quickly than an opponent in order to infiltrate and disrupt the enemy’s decision cycle. OODA loop related terminologyBefore the OODA loop can be fully understood, a few related concepts need to be introduced:
How the OODA Loop works: The Four StepsSimilar to other problem-solving methods, the OODA loop is an interactive, iterative process that entails repeating the cycle, observing and measuring results, reviewing and revising the initial decision and advancing to the next step. While the process is not always simple or linear, the four separate steps involved are:
These phases have been broken out for the purposes of explanation, but in some real world scenarios they might happen in a fraction of a second. The four steps of the OODA Loop work together in a cycle.Success of the OODA LoopOne key to the success of the OODA loop is to make it as short as possible, minimizing reaction times in high-stakes situations. In the OODA loop’s simplest form, there is only one stimulus and one response, but that is not always the case. Hick’s Law can be applied to the reaction time of an OODA loop that has more than one stimulus or response, stating that when there are multiple options available in response to a stimulus, reaction time is slowed down. The ability to make decisions faster than an opponent is important, but it is not only about speed. Tempo is also critical as the ability to rapidly speed up and slow down can generate unpredictability. Being unpredictable makes it difficult for opponents to understand and orientate themselves to what will happen next. Cycling through an OODA loop with more tempo than an opponent gives an organization more control of the environment and a better chance of succeeding. Factors that affect the OODA LoopOODA loops are only as effective as the amount of time it takes to execute a response. Factors that can affect the efficiency of the process include:
Uses of the OODA LoopThe OODA loop has been adapted to become an important concept in various fields such as business, game theory, information security, law enforcement, litigation, marketing and military strategy. Professionals find this strategy compelling because of its common-sense approach to decision-making and its emphasis on staying competitive. In general, military planning models are often applied to uses outside of their original context due to their effectiveness in extreme situations. Strategies developed for military personnel are tested under a variety of chaotic, conflicting scenarios in order to prove their agility and versatility. Therefore, the OODA loop has been translated into a business strategy that handles any application that requires a quick response to confusing, unforeseen or evolving conditions. With more emphasis being placed on a company’s ability to collect feedback and analyze competition, this method is now a common approach applied to the enterprise. In business, OODA loops typically examine what is happening externally and how results are performing in order to become more agile. Similarly, an organization with a security operations center (SOC), computer emergency readiness team (CERT) or computer security incident response team (CSIRT) may use an OODA loop cycle to develop an organization’s incident response plan. Additionally, due to the growth of data analytics in business, the OODA loop is a popular method for handling an influx of constantly emerging information. Many companies have become inundated with data which they falsely believe creates a competitive advantage. However, real competitive advantage comes from making better decisions. Companies can achieve better situational awareness when they implement the observe and orient steps to organize data in a way that accurately depicts the business environment. Once the data is placed in context, they can make smarter organizational decisions and actions. Examples of the OODA LoopIn its simplest form, the OODA loop is employed by all individuals every day when making a decision. Someone may observe they are hungry, orient themselves in relation to potential places to buy food, decide to pick a specific restaurant and act by eating. More complex, higher-stakes versions of the OODA loop in everyday life can be seen when creating a retirement savings plan or buying a home. In business, the OODA loop could be applied when a competitor releases a new product to help decide how the company will react or adapt. Similarly, it can be used to observe the economic behavior to make decisions on the best time to take risks and expand or play it safe. The OODA loop is a popular business strategy for startup companies as much of their success relies on accepting uncertainty and bracing for competition. In cybersecurity, the OODA loop can be used by IT professionals to resolve any malicious activity that is meant to compromise an organization’s defenses. Since cyberattacks are typically identified after the event has occurred, responding with an efficient, organized strategy is the best way to minimize damage. In incident response, the OODA loop can be a helpful tool for responding to an emergency. Incidents can cover a wide range of events such as natural disasters, terrorist attacks, data breaches and identity theft. They are usually categorized by either being directly, specifically related to an organization or effecting entire communities as a whole. However, in all incidents, the OODA loop can be used to assess the situation, respond appropriately and refine practices to prepare for future catastrophes. Additionally, the marketing techniques of growth hacking and social media monitoring could be considered specialized examples of OODA loops. Advantages of the OODA LoopImplementing the OODA loop in an organizational context could provide the following benefits:
Disadvantages of the OODA LoopWhen not implemented correctly, or applied to the wrong scenarios, the OODA loop may be associated with the following disadvantages:
History of the OODA LoopJohn Boyd was the 20th century fighter pilot and military strategist who developed the idea of the OODA loop. Boyd earned the nickname “Forty-Second Boyd” during his time as a fighter pilot, referring to his ability to win a fight against the opponent in under forty seconds. He developed the energy maneuverability theory and was known for accurately observing people or organizations to gain a competitive edge. After studying historic battles and serving in World War II, the Korean War and the Vietnam War firsthand, Boyd came to the conclusion that success was dependent on the ability to rapidly adapt and make fast decisions in an uncertain environment, regardless of which side was at a technical advantage. This idea is what eventually evolved into the OODA loop which he applied to the combat operations processes, often at the operational level, during military campaigns. Boyd was inspired by the scientific method and added the fourth step, of orientation, to fit his purposes. Since the military is highly classified and often passes down strategies orally, much of Boyd’s original idea was left unpublished. This has lead professionals and students to research the concept more broadly and apply it to different fields, such as business or sports. Criticism of the OODA LoopWhile the OODA loop is a popular decision-making model, there are criticisms of its effectiveness. The main downfall is that the OODA loop might be too obvious, thus potentially wasting time. The process itself is sometimes instinctual, and therefore, does not need to be explicitly spelled out. Additionally, the underlying goal of making decisions faster than the opponent to increase the odds of winning should be a universal goal regardless of which decision-making method is employed. However, the OODA loop can be helpful for organizations that need to reflect on the results that their decisions have led them to. It is primarily about taking something that is intuitive and making it explicit so that it can be improved. Alternatives to the OODA LoopThere are no explicit alternatives to the OODA loop that focus on the deep understanding of how and why people make their decisions. But a few ideas that can be combined with, the OODA loop include:
This was last updated in July 2022 Continue Reading About OODA loop
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Does decision making include inaction?Decision making is choosing among alternative courses of action, including inaction. There are different types of decisions, ranging from automatic, programmed decisions to more intensive nonprogrammed decisions.
What occurs when focusing only on information that validates a decision already made?confirmation bias, the tendency to process information by looking for, or interpreting, information that is consistent with one's existing beliefs. This biased approach to decision making is largely unintentional and often results in ignoring inconsistent information.
Which of the following is the first step in a decision making process?The first step in the decision making process is Identifying a problem which means examine the problem more closely and understand the cause of a problem.
When decision maker selects the best possible solution to a problem it is called?A satisficing decision chooses the alternative that gives the best possible solution to a problem. 18.
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