Certain to Win: The Strategy of John Boyd, Applied to Business by Chet Richards
John Boyd was a U.S. Air Force Colonel who developed unconventional and revolutionary ways of warfare battling strategy. These strategies have since found a new life in the business world, as Chet Richards has demonstrated in his book “Certain to Win: The Strategy of John Boyd Applied to Business”.
Boyd’s strategy revolves around the concept of the “OODA loop”--observe, orient, decide, and act--which he posited was effective in producing results faster than the competition. Richards’ book argues that the same principals of efficient operation can be applied to the business environment and suggests that by leveraging the OODA loop, a company can gain an advantage on its competitors.
The observe portion of the OODA loop revolves around establishing a thorough understanding of the goals and expectations of the competition and the environment in which the company operates is essential in this first step. By understanding the competition’s motivations and behavior, the company can more accurately plan its own behavior. Additionally, by observing the market, the company can assess trends, including customer buying behavior and the macroeconomic outlook which might affect the company’s performance.
The next portion of the OODA loop is orienting oneself to the competition. During this step, the company is determining how it will move forward given the information acquired during the observe stage. Taking cues from the industry and the competition, the company can determine what sort of decisions it needs to make to remain competitive and ahead of the broader market trends, while also taking risks.
The third stage of the OODA loop is deciding. Once the initial analysis of the market and competition is completed, the company needs to make decisions as to how it will move forward and remain competitive. This necessitates innovation, risk-taking and agility in order to stay ahead of the competition, and intelligent risk-management to ensure that any risks taken do not cause too much damage to the company.
The final step of the loop is taking action. At this point, the company has done the analysis and has made the decisions; all that remains is for the company to act on those decisions. This step is incredibly important, as this is the area in which the company can gain a competitive edge. By reacting quickly and efficiently to market trends and competition, the company can make a greater impact than if it were to wait for an established path.
By using the OODA loop as a template for competitive advantage, companies can gain an edge on their competition. Richards’ book “Certain to Win” argues that the same principles used by Colonel Boyd to gain the edge in battle can be applied to business in order to reach success. By observing the competition and the environment, orienting oneself to the industry and competitors, making decisions, and taking action quickly and efficiently, the company can gain the advantage it needs in order to succeed in today’s changing environment.