The phrase OODA loop refers to the decision cycle of observe, orient, decide, and act, developed by military strategist and United States Air Force Colonel John Boyd. Boyd applied the concept to the combat operations process, often at the strategic level in military operations. It is now also often applied to understand commercial operations and learning processes. The approach favors agility over raw power in dealing with human opponents in any endeavor.
The OODA loop has become an important concept in litigation, business,law enforcement, and military strategy. According to Boyd, decision-making occurs in a recurring cycle of observe-orient-decide-act. An entity (whether an individual or an organization) that can process this cycle quickly, observing and reacting to unfolding events more rapidly than an opponent can thereby "get inside" the opponent's decision cycle and gain the advantage. Frans Osinga argues that Boyd's own views on the OODA loop are much deeper, richer, and more comprehensive than the common interpretation of the "rapid OODA loop" idea.
Boyd developed the concept to explain how to direct one's energies to defeat an adversary and survive. Boyd emphasized that "the loop" is actually a set of interacting loops that are to be kept in continuous operation during combat. He also indicated that the phase of the battle has an important bearing on the ideal allocation of one's energies.
Boyd's diagram shows that all decisions are based on observations of the evolving situation tempered with implicit filtering of the problem being addressed. The observations are the raw information on which decisions and actions are based. The observed information must be processed to orient it for decision making. In notes from his talk "Organic Design for Command and Control", Boyd said,
The second O, orientation—as the repository of our genetic heritage, cultural tradition, and previous experiences—is the most important part of the O-O-D-A loop since it shapes the way we observe, the way we decide, the way we act.
As stated by Boyd and shown in the "Orient" box, there is much filtering of the information through our culture, genetics, ability to analyze and synthesize, and previous experience. Since the OODA Loop was designed to describe a single decision maker, the situation is usually much worse than shown, as most business and technical decisions have a team of people observing and orienting, each bringing their own cultural traditions, genetics, experience and other information. It is here that decisions often get stuck, which does not lead to winning, because: