“To Get Business Results — Try This Process”

How OODA achieves results.

I’m always enthused when asked to be a guest lecturer, especially in a graduate level entrepreneur class. It takes me about a nanosecond to agree to participate. For me the energy and interaction of being a guest lecturer fosters my creative thinking, application of new processes and stimulates critical analysis. It has become my favorite way to connect to blossoming MBA business leaders in the academic process. 

Many MBA candidates are working by day, with the ability to apply what they learn to their real day job situations. This generation of young professionals has complex domestic and global economic issues to resolve. Therefore, I believe all owners can profit by imparting practical experience and know-how. In the midst of dealing with financial circumstances we’ve not seen before, any opportunity to influence the future by sharing kernels of wisdom becomes meaningful.

Because of the complexity in every business today, I see more owners seeking to unload the burden of being the solo decision maker. I’ve also observed that it is possible that we may be under-utilizing existing talent because we are just stuck in the comfort of old habits. Many owners recognize that what has worked before, may not carry them through what we face today.  My observation is that leaders of privately-held businesses need now more than ever to become sage teachers.

One teaching opportunity and process for achieving progress was introduced to me recently. It’s called OODA - (pronounced “ewda”) utilized by the Armed Forces to teach young military professionals field strategic and tactical leadership methods to succeed. The acronym stands for — Observe. Orient. Decide. Act. The process was created by USAF Colonel John Boyd to direct one’s energies towards achieving a rapid success, using aggressive tactics and strategy. Let’s look at its elements and how it may be applied in business.

Observing means to look around and take in the landscape. By applying curiosity one might “see” what’s happening around them more clearly. The technique is difficult. It starts out with “Hmmm. What’s going on here?” and internally takes the discipline to listen for the response without reacting. Hanging in there with an objective report out, assessing what you are experiencing without making an immediate judgment is tough. It may mean standing there while things around you are in a state of instability and unrest and asking, “What is it that I am seeing? Is it influenced by my perceptions and beliefs, or is it real?” Unfolding circumstances, outside information and unfolding interaction with the environment are taken in as observations. This becomes the basis for orientation.

Orienting means to take an assessment of where you are relative to what’s around you. In business financial terms it may mean taking a deep breath and looking hard at the financial results and where the business may be relative to its competitors. Using GPS is a good metaphor for this stage of the method. Robert Morris Associates (RMA) has built a business for bankers using benchmarks for a number of industries by SIC/NAICS code. Additionally, your own Industry Association may provide a relative financial scorecard of P&L and Balance Sheet statistics drawn from like-sized industry colleagues. Simply, the process of orienting oneself provides a reference point, a stake in the ground for decision, based on observation.

Deciding means just that — making a decision, based on your observations and orientation. It becomes the hypothesis that’s formulated and eventually tested. Analysis is an important ingredient and can be rapid or paced depending upon the situation. Ultimately the deciding phase reaches a single tactical or strategic decision point that’s tested in action. Sometimes, the Decision process may need to be stalled to make an appropriate decision until further information is available. However, analysis to the point of indecision is not acceptable because indecision paralyzes. The mission is to move forward. So it’s always oriented towards putting things in forward motion.

Acting means you’re in movement mode and applying the Decision hypothesis. This phase might also be called execution. It’s the energy phase. The application of where you are with what you see and with clarity of decision — it’s the time to act. It’s the focus and follow-through to get a result. One perspective is allowing work to be an experiment. Mostly it teaches that failure is safe and not a reason for inaction. Failure or success is just an outcome for learning. That makes moving forward towards innovation safe. And based on the results of the Action, feedback occurs while the environment unfolds which begins the Observation stage all over again. Observe. Orient. Decide. Act.

In the field of day-to-day business operations, OODA has a multitude of opportunities for application. What’s important is that it’s applied as a process for forward progress. OODA strategically applied can be a business survival technique or a neutralizer for a competitor’s pricing panic. OODA tactically applied can be helpful in day-to-day business operations dealing with suppliers, product introductions and development, a market or specific geographic expansion or the normal challenges of daily resource resolution.

In this new economy, we can rely only upon one guarantee — more Never Been Done Before opportunities will be presented to us in Finance and Operations. Allowing our leaders to follow a proven process and to experiment requires strong and disciplined owners as teachers. Re-vitalizing America’s privately-held business by molding tomorrow’s leaders is certainly a worthy endeavor.

David W. Wimer, CBI^® - is Principal of Marathon Business Group, LLC a boutique investment banking firm. Mr. Wimer provides insightful business transition expertise to owners of privately-held businesses at www.davidwimer.com. He can be reached at Mobile: 484-269-7700 or Email: david@davidwimer.com .

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