I’m sure you know what it is like to be put in a situation where you have to make a decision quickly – whether it’s for your business or personal life. You feel pressured, unsure of what to do and fear the consequences of any decision you make. What do you do when you are put in this situation? Well, you can make a rash decision and possibly live to regret it, or you can use a technique called the OODA Loop.
What is the OODA Loop
The theory of the OODA Loop was developed by John Boyd, a US Air Force Colonel, to help pilots make super quick, highly effective decisions whilst engaging in air combat. It soon became clear that the process could be used for making business decision too. In fact, there are many similarities between business and battle, with strategies for conquering the opposition and tasks with military names, such as ‘price war’, ‘gathering intelligence’ and ‘fighting off threats’. And in business, as in war, it is important to be one step ahead of the ‘enemy’ (competition) allowing you to react quickly to what they do.
How the OODA Loop works
So how does the OODA Loop help you make decisions? The OODA Loop is a four point decision making process that allows you to make effective, speedy and pro-active decisions. The four stages of the process are:
O – observe You should gather as much information as possible from as many sources as you can. While it’s important for the process to be quick, it is also important for you to make sure you gather the right information, as this determines the decisions you make and the action you take. So, if your information gathering is flawed, your decision and action will be flawed too. You should be asking yourself questions such as:
• What’s happening around me that will affect my decision?
• What might happen that could affect my decision?
• Are there any other sources I can use?
O – orient The next step is to analyze and interpret the information you’ve gathered. This will allow you to update your current view of reality. Boyd describes how you will be influenced by a number of factors when you carry out this process. These include:
• past experiences
• cultural traditions
• genetic heritage
As you analyze and interpret the information you should try to stay aware of these influences. It can be hard, but it is very important that this part of the process is unaffected by the influences. If you don’t observe and analyze accurately, the rest of the process will be flawed and you’ll not achieve the outcome you wanted.
D – decide You are now in a position to decide on a course of action. Remember this is an ongoing process and your decisions will change as you discover new information.
A – act Finally, you can act on your decision and complete the process.
Once you’ve completed the process you can loop back around to the start again by observing the results. And, if needed, you can start all over again to achieve the outcome you want.
Of course, quick decision making is not appropriate to all situations. Many require lots of time, attention and thought and for these situations another method may be more appropriate.
So, now you have another great tool for your decision making process. Use it and let me know how you get on. And, if you have any great tools of your own, please do let me know so others can benefit from your wisdom.
