Phron Weekly #9: The OODA Loop for Competitive Decisiveness

Hi Everyone!

Welcome to the ninth edition of Phron Weekly! This week's review explores our decision "to be" or "to do" and John Boyd's competitive decision-making framework.

Reflections and Growth

John Boyd was a military strategist and fighter pilot who served in the U.S. Air Force during the mid-20th century. His piloting earned him popularity and the nickname "Forty-Second Boyd," as he could defeat any opponent in simulated air combat in under a minute. Boyd was seen as a nonconformist toward traditional military bureaucracy. Instead of climbing the military ranks, he advanced his ideas and meaningfully influenced others.

The quote stems from a pivotal question Boyd posed to his protégés. He asked them to choose between two distinct career paths: “to be” or “to do.” Here, “to be” refers to focusing on status, climbing the ranks, and seeking recognition or titles without corresponding impact. "Being" is not a reference to one's character but refers to the "being" of position to others. In contrast, "to do" signifies a commitment to a mission and meaningful contribution, often without promise of recognition.

In Coram's biography, Boyd: The Fighter Pilot Who Changed the Art of War, he writes about Boyd's pivotal epiphany after being passed over for a promotion for another inconsequential paper-pusher:

Boyd suggests that pursuing title or status (“to be”) often comes at the expense of honest work, innovative ideas, and challenging the status quo. Those who choose “to do” are more likely to prioritize the mission and their principles, even if it means sacrificing traditional markers of success and popularity. Our choice determines our focus, experience, and contribution.

Your Next Move

This week, consider if you aim “to be” or “to do.” Which one do you strive for and why? Challenge your reasoning and the assumptions behind it.

Business Insights

Making Decisions Like a Fighter Pilot

Exploring techniques for making effective decisions under pressure involves studying successful tactics employed in extreme environments. John Boyd's military success is attributed to his decisiveness, and he later became known for creating the "OODA Loop" (Observe, Orient, Decide, Act).

The OODA Loop is a decision-making process that emphasizes adaptability and quick decision-making in complex and fast-changing environments. Boyd developed this framework in the context of air combat during the Korean and Vietnam Wars. He observed that U.S. fighter pilots with more agile and adaptable aircraft could outmaneuver technically superior adversaries by "getting inside" their decision-making cycles. By iterating through the OODA loop faster than the opponent, pilots created uncertainty, forcing adversaries into reactive, less effective actions.

The OODA Loop works as follows:

• Observe - Gather information about the environment, including changes, risks, and opportunities. Observation involves capturing relevant data and assessing new developments.
• Orient - Analyze and interpret the data, setting it within a meaningful context. Boyd considered this phase the most critical because it involves reconciling new information with past experiences, cultural biases, and mental models.
• Decide - Determine a course of action based on the orientation phase. The decision is a form of a hypothesis that will be tested in the action phase.
• Act - Execute the decision and apply feedback for the next iteration of the Loop. This action provides insights that inform future cycles, allowing for constant adaptation.

The key to the OODA loop is speed and adaptability. In a competitive environment, the faster one can cycle through the loop, the better positioned they are to stay ahead of competitors.

Netflix uses the OODA Loop to stay agile amid rapidly changing markets. They continuously cycle through observation (customer data and trends), orientation (internal data analysis), decision ( recommendations or changes to offerings), and action (implementation of new content or features). This iterative process keeps the company adaptive to audience preferences and ahead of competitors.

Some action steps for you:

• Adapt to market shifts using the OODA Loop. Stay relevant by regularly observing consumer trends, orienting by analyzing these in the context of business capabilities, deciding on agile strategies, and acting quickly to keep your business relevant.
• Use the OODA Loop to navigate major life decisions or complex situations.

Some links for you:

• CFI on OODA Loop
• Tactical Response on OODA Loop
• Netflix, OODA, and OKRs

Fun Fact: Did you know laughter is good for the heart? It increases blood flow and reduces stress and inflammation - so every chuckle is a little boost for your heart.

Disclaimer: The content of this newsletter is for informational purposes only and does not constitute professional advice.