What is OODA Loop?

Observe-Orient-Decide-Act Loop

Broken down, the OODA loop stands for four distinct yet interrelated smaller loops: observe, orient,
decide and act. It 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. it is a practical concept
designed to function as the foundation of rational thinking in confusing or chaotic situations.

In 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.

John Boyd
John Boyd was the 20th century fighter pilot and military strategist who
developed the idea of the OODA loop. He developed the theory based on his
earlier experience as a fighter pilot. He initially used it to explain victory in air-
to-air combat, but in the last years of his career, he expanded his OODA
theory into a grand strategy that would defeat an enemy strategically by
“psychological” paralysis.

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.

Boyd emphasized that strategy should always revolve

around changing the enemy’s behavior, not
annihilating his forces.
  Boyd developed the OODA Loop with fighter
pilots in mind, but like all good mental models, it
works in other fields beyond combat. It was used
in intelligence agencies, it was used by lawyers,
doctors, businesspeople, politicians, law
enforcement, marketers, athletes, coaches and
more.

Military applicability
Corporate applicability
Although OODA was clearly created for military purposes, elements of the
same theory can also be applied to business strategy.

While the OODA loop continues to be used in the military for everything from
daily operations to high-level strategy, it’s also become popular in the modern
enterprise as executives face an increasingly fast-paced, competitive
marketplace.

For executives in the enterprise, the application of this paradigm is meant to

improve operational efficiency; and success in this regard will be measured by
the organization’s ability to shorten their loop, speed up response times, and
apply more learnings more quickly. Indeed, by condensing what used to be
drawn-out analyses into a decision-making framework suited to the breakneck
speed of modern business, the OODA loop allows enterprise decision-makers
to outmaneuver the competition by making better decisions, faster.
Boyd’s concept has, for example, found a new home in the manufacturing
sector. By encouraging system managers to identify issues quickly, orient
their resources accordingly, decide on a course of action, and execute that
plan effectively, it’s possible to respond to changes of demand, supply chain
disruption, and other contingencies more quickly than the competition.

B. The OODA Models

The four parts of the OODA Loop
Let’s break down the four steps of the OODA Loop and see how they fit
together.

Don’t forget the “Loop” part. The process is intended to be repeated again and
again until a conflict finishes. Each repetition provides more information to
inform the next one, making it a feedback loop.

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