OODA Loop
Observe, Orient, Decide, Act—then repeat quickly.
Explanation
Air Force Colonel John Boyd developed this decision-making process for fighter pilots, but it applies to any competitive situation. The key insight is that speed matters more than perfection—if you can observe what's happening, orient yourself to the situation, decide what to do, and act faster than your competition, you'll win even if your individual decisions aren't perfect.
Real-World Example
Startups vs corporations: Startup observes customer need Monday, orients Tuesday, decides Wednesday, ships Thursday. Corporation still scheduling the meeting. Netflix vs Blockbuster: Netflix cycled through DVD-by-mail, streaming, original content while Blockbuster was still deciding about late fees.
How to Apply
Observe: Gather information continuously. Orient: Update mental models (hardest part). Decide: Make good-enough decisions quickly. Act: Execute and create new observations. Then loop. Tighten your loop: Shorten each phase. Multiple quick loops beat one perfect loop. In competition, disrupt opponent's loop.