Approaches to Decision-Making: OODALOOP and PDCA Cycle

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Summary of the Previous Article

: Learning from past mistakes, using the example of buying a smartphone as a case, it is mentioned that the process of “setting clear goals, collecting and organizing various information, comparing and considering, and making conclusions” is something that some people do casually in their everyday lives.

The content of this article is to understand the importance of rational thinking, the thought process, and to understand the overview of the decision-making process.

Main Text

Understanding the goal clearly: In the previous article, it was mentioned that the goal was to upgrade the smartphone. First, as part of information gathering, it is necessary to research whether the camera performance is good, whether a large or small size is preferred, and what specifications and prices can be expected for new products in the 100,000 yen range.
Next, you need to research where the 100,000 yen will come from. Is it from savings, future installments, or split payments using a credit card? Based on this information, you will consider the method of purchase. If you choose to set aside a monthly allowance, you need to weigh the overall cost, considering that most of this month’s bonus will go towards the cost of the smartphone.

If you decide to purchase this time, you will need to think about when and where to buy, whether to choose an iPhone or a Pixel, and how to make the payment, whether in a lump sum or with points.

Setting clear goals, collecting and organizing various information, comparing and considering, and making conclusions are all derived from the OODA LOOP theory.

What is the OODA LOOP?

Do you know about the OODA LOOP?
This is a theory about decision-making and action proposed by John Boyd, a U.S. Air Force fighter pilot who gained the nickname “40-Second Boyd” because he could shoot down any enemy in 40 seconds. While OODA LOOP originally pertained to decision-making in aerial combat, it has now become a new generation thinking tool applied in various fields such as the military and business.

Origin

The origin of the OODA LOOP dates back to the Korean War.
At that time, the F-86 fighter used by the United States, despite being inferior to the Soviet MiG-15 fighter in terms of turning performance and other aspects, was overwhelmingly dominant in actual combat. The F-86 had a feature that allowed the pilot to have a 360-degree view and easy control of the control stick through hydraulic control.

Boyd concluded that the reason for this reversal in the Korean War was that the F-86 fighter was able to create “asymmetrical high-speed transitions.”

The term “transition” refers to a shift from one state to another, and “high-speed” refers to the short time required for this shift.

“Asymmetrical” means having an advantage over the other side. In other words, to defeat an enemy with superior capabilities, it is necessary to transition to the next action before the opponent’s understanding catches up, creating confusion in the opponent.

Overview

OODA stands for
O: Observe

O: Orient

D: Decide

A: Act

Observe is about observing the physical, psychological, and mental conditions of oneself and the opponent, as well as the environment.

Orient involves making judgments about what the observations mean and orienting oneself accordingly.

Decide involves making certain decisions, and Act is about implementing those decisions.

In other words, by making judgments based on information and taking action, you can create confusion for the opponent.

Why is OODA LOOP Important Today?

OODA LOOP is a thinking tool for creating an advantage through rapid decision-making. Boyd never claimed that the performance and quantity of weapons were crucial to winning battles. The important thing is to surpass the opponent’s understanding through decision-making and maneuvering, seizing the initiative and creating confusion in the opponent.
So, why do we need to learn OODA LOOP now? Let’s compare it to another similar concept, the PDCA cycle.

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