Planning and Execution within a Management Learning Cycle that creates Advantage
Successful organizations understand that no plan or passes the test of time and unknowns. Great decision makers understand that a plan is useless until it isn’t acted upon. Organizations, like people, learn through practice and application. Actions beget outcomes – not plans. Successful organizations do not waste precious time trying to capture every last risk, assumption and obstacle in a detailed plan rather they favor a flexible plan that accepts large amounts of unknowns but retains flexibility and smaller quicker decisions where they can observe their environment, orient themselves within the context of that environment, recommend and make decisions to affect outcomes that lead to success, and act to shore up success. Successful organizations are adept at this Observe Orient Decide Act process. They understand that failure is caused as much by complexity, indecision and poor timing as it is by unanticipated variables – therefore they conclude that it is better to Observe, Orient, Decide, and Act --quickly (OODAq).
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OODA for businesses
1. OODA as a Business Operations Management Framework
A White Paper Adapted from
Whiskey and Decisions
2. A highly adaptive learning cycle characterized by 4 stages:
Observe
Orient
Decide
Act
OODA Cycles create experiential knowledge
Knowledge exponentially increases effectiveness through:
Improved Skills
Improved predictions
Improved adaptability
Speed of decision making
Air Force Colonel John Boyd (1927-1997) first coined the term OODA Loop to
describe a high stakes, tactical combat decision-making pattern.
3. Successful organizations understand that no plan or passes the
test of time and unknowns.
Great decision makers understand that a plan is useless until it
is acted upon.
Organizations, like people, learn through repetition.
Actions begets outcomes
Outcomes generate learning opportunities
This process is very intuitive and easy to recall
It is by nature adaptive
6. Do not focus on perfection
Focus on a solid 75% solution and “GO”
Reward action which creates momentum and learning
Learning Organizations Recognize Advantages and Opportunities with
increased clarity and accuracy
Adaptive organizations can seize opportunities when presented
7. Actual Opportunities, Risks and Unknowns
Missed, Unconsidered,
.hastily acted upon, reacted to
Known's
A
K
E
F
Planned
Opportunities, Risks
Acted upon
OODA:1 A
B C
G
C
B
OODA:2
D
Anticipated Opportunities and Risks =
Planned for in OODA 1
H
2008
2009
D
B
Unforeseen Risk D
Actually affects the Plan far more than C.
C
Foreseen
E
A Known
G
K
Myriad of unknowns remain such!
(Missed Opportunities)
UnSeen
F
(Missed Opportunity)
F Set conditions for success in E and H
(Missed Opportunity)
H
Require a Year to
Develop
(Missed Opportunity)
Optimize and compress the decision cycle to Move out of the React Zone
8. 4:1 OODA Cycle =
4 Times better understanding of the multiple unknowns from
earlier cycles. Increases Flexibility and places the company
ahead of our competitors in a single loop
4
1
2
3
What Conditions and Actions must we create?
How do we mitigate risks and obstacles?
V
P
CF I
B
DG
A
L
M
H
E JK N
2008
X
O
Q
R
U
F
A
D
G
E J
L
H
N
K
2011
2012
2013
V
X
I
MO
Y
2010
P
C
Z
ST
2009
B
W
5 yr Vision
Q
W
R
U
ST
Z
Y
Build Bridges and Destroy Obstacles!
10. Commitment to a Synchronized Execution of planning
and Operations using OODA cycles to measure Operational Velocity
Success = Commitment and Participation = 80 hours
•
Meeting 1: 5 hrs
Facilitator Lead
Targeted
Assistance
in Preparation
Meeting 2:
Offsite 8hrs
Prep: 8hrs
•
•
•
•
•
What are the Brutal Internal Facts - TAT, Quality, Customer
Satisfaction, Product, Service, Revenue, Growth, market position
How did we get in the current condition (Forensic Intelligence)
Environment – Starting States and Assumptions to carry forward
Futures Analysis (Define the realm of Possible)
Visioning (Pinpoint year endstate with Annual Success Markers &
Metrics)
Identify the Critical Path to success – Nested BU Task and Purpose to
achieve the critical path states. (Strategic Level Detail with BU SWAGs)
– Relate, evaluate and synchronize desired affects on peer
units, revenue, customer satisfaction, service volume, product
development, quality and TAT, growth and market position.
Meeting 3: 4hrs
Prep: 4hrs
Meeting 4: 4hrs
Prep: 4hrs
Meeting 5: 2 hrs
Internal: 80 hrs
Meetings 6-10:
1 hour each BU
40 hrs prep per BU
•
•
•
•
•
•
Operational Estimates - generate business unit plans to support this
strategic vision (task organization of people and resources)
Simulation of the critical path.
Strategic Decision Brief to CEO ()
Operational Planning (Business units conduct the same steps as above
but focus on synchronizing their internal plan with internal assets
Operational Back Briefs to CEO (Verification of BU synchronization
around the strategic plan)
Cycle 1 complete – Cycle 2 starts with KPI FEEDBACK!
11. 1st Strategic OODA Complete ~80 Hours in ? Months
1st Strategic OODA
= Strategic Concepts to Operational Approval
= Task and Purpose
= Decisions by Echelon
5 Year Plan?
2
0
0
8
Clear 5 Yr Vision
Concept
Annual Muscle
Moves
Strategic
Concepts
Approval
Supporting
Plans/Validated
Approved
Deconflict
Operational
Inconsistency
Monitor – Sept
OCT start 2014
Strategic Decisions
Operational
Nesting
Operational
Planning
P Business Alignment
L
A
N Tactical Decisions and Operations
Simulations
Buy-in
Jan 31st
Preparation
Operational
Capability
Assessments
Suitable
Feasible
Acceptable
Detailed
Supporting
Plans
Detailed
Specs
Approved
Detailed
Specs
Completed
End March
Start OODA 1
Monitor
and
Adjust Operational
Inconsistency
End OCT –Start
Build 2014
12. Strategic
Observations
Strategic Observations
BU Observe
BU Action
to
Reduce Obstacles
BU Observe
Simulation
Strategic Orientation
COA Development
BU Orient
Adapt to lessons
From the Simulation
Strategic
Direction
BU Orient =
COA Ideas &
Estimates
BU Decision on
Adjustments
BU Decisions =
Capabilities and Limitations
Decisions = Negotiated Assessments
Strategy Decision
13. Value of Iterative Thought and Agreement
Many
Insight Growth and Chance of Success
X-Team Planning Activities and Cycles
High
Else if Relevance & Acceptance Gained - - Insight Growth
Facts , Assumptions
Trends
One
Hours
Low
Growth stunted by indecision and lack of teamwork to forge ahead
Weeks
Time Spent Planning
-Lesson - - Record and forge ahead to increase depth of Insight and Increased situational Understanding
Months
14. Many
Insight Growth and Chance of Success
X-Team Planning Activities and Cycles
High
ORG OODA Cycle 1 = 70% chance of success solution at the decision point
Final Coordination
Plan Approval
Test and Simulate
Time and circumstance serve as countervailing forces
and degrade chances of success - - Stuff
Happens, and the competitor doesn’t always do what
you want him to do
Synchronization Approval
Coordinate Critical
Path Actions Plan
SFA (Suit, Feasible, Accept)
Generic Options
Analysis
Validation & Acceptance
Future State
Problem Framing
Validation & Acceptance
Current State
Problem Framing
Relevance & Acceptance
Facts , Assumptions
Trends
One
Hours
Growth stunted by indecision and lack of teamwork to forge ahead
Weeks
Low
Months
Time Spent Planning
- Grow Insight by moving the planning group all the way through the OODA cycle - - Like outcome is a 70% solution!
- However, as Time Marches on, The plan must continuously adapt to changing circumstances in the 30%
15. Org Cycle 3
Many
High
Final Coordination
Test and Simulate
Generic Options
Analysis
Validation & Acceptance
Future State
Problem Framing
Validation & Acceptance
Current State
Problem Framing
Insight from OODA Cycle 1 passed
Insight from OODA Cycle 1 passed
SFA (Suit, Feasible, Accept)
Coordinate Critical
Path Actions Plan
Synchronization Approval
Plan Approval
Coordinate Critical
Path Actions Plan
Synchronization Approval
Coordinate Critical
Path Actions Plan
SFA (Suit, Feasible, Accept)
Generic Options
Analysis
Validation & Acceptance
Future State
Problem Framing
SFA (Suit, Feasible, Accept)
Generic Options
Analysis
Validation & Acceptance
Future State
Problem Framing
Insight Growth and Chance of Success
Plan Approval
Final Coordination
Synchronization Approval
Test and Simulate
Insight from OODA Cycle 1 passed
Final Coordination
ORG OODA Cycle 1
Test and Simulate
Plan Approval
Insight from OODA Cycle 1 passed
X-Team Planning Activities and Cycles
Org Cycle 2
Validation & Acceptance
Current State
Problem Framing
Validation & Acceptance
Relevance & Acceptance
Current State
Problem Framing
Facts , Assumptions
Trends
Relevance & Acceptance
Facts , Assumptions
Trends
Relevance & Acceptance
Facts , Assumptions
Trends
One
Hours
Growth stunted by indecision and lack of teamwork to forge ahead
Weeks
Low
Months
Time Spent Planning
-Repeat the cycles to account for the unexpected 30% - ID plan and watch for Branches and sequels to your critical path
16. Cycle 3 - Contingency
Cycle 2 - Opportunity
Test and Simulate
Final Coordination
X-Team Planning Activities and Cycles
Cycle 2 - Contingency
Cycle 1-Base
Synchronization Approval
Synchronization Approval
Test and Simulate
SFA (Suit, Feasible, Accept)
Generic Options
Analysis
Validation & Acceptance
Future State
Problem Framing
Validation & Acceptance
Current State
Problem Framing
Relevance & Acceptance
SFA (Suit, Feasible, Accept)
Coordinate Critical
Path Actions Plan
Synchronization Approval
Coordinate Critical
Path Actions Plan
Coordinate Critical
Path Actions Plan
Test and Simulate
Plan Approval
SFA (Suit, Feasible, Accept)
Generic Options
Analysis
Validation & Acceptance
Future State
Problem Framing
Validation & Acceptance
Current State
Problem Framing
Coordinate Critical
Path Actions Plan
Test and Simulate
Plan Approval
Final Coordination
Synchronization Approval
Plan Approval
Final Coordination
Generic Options
Analysis
Validation & Acceptance
Future State
Problem Framing
Validation & Acceptance
Current State
Problem Framing
SFA (Suit, Feasible, Accept)
Generic Options
Analysis
Validation & Acceptance
Future State
Problem Framing
Validation & Acceptance
Current State
Problem Framing
Relevance & Acceptance
Facts , Assumptions
Trends
Relevance & Acceptance
Facts , Assumptions
Trends
Relevance & Acceptance
Facts , Assumptions
Trends
Facts , Assumptions
Trends
One
Hours
High
Insight Growth and Chance of Success
Many
Low
Weeks
Time Spent Planning
-Compress the cycle as much as possible to increase knowledge and success
-”The plan is to keep planning- Observe-Orient-Decide and Act to achieve the larger vision while adjusting as
necessary to account for the 30% unknown factor.
Months