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Ricardo (4s): Everyone welcome to the five minute PM podcasts. Today I like to talk about the OODA Loop. A friend of mine introduced me to this concept quite recently, and it's very, very interesting. So I want just to talk a little bit more about it OODA stands for observe, orient, decide and act so double O D A and it's a Loop because it retrofits the full process. This was developed by an air force, pilot Coronel John Boyd, and it was aiming for combat operation process. The basic assumption of this OODA loop is a decision making process that prioritize agility.
Ricardo (50s): So why does this so important? Because many times we Decide under pressure. So we decide when the problem or the challenge arises. So the OODA Loop prepares you that when you need to decide the decision making process is almost pre stablish. So let's try to understand this a little bit more. So the first item is Observe. So what do you do if there is any challenge. So you Observe, you collect data, you understand, which are the critical pieces of information you need to do, and this is before you engage.
Ricardo (1m 32s): So before the problem happens. So for example, let's suppose in a project you have a procurement process. So you were expecting that a very critical service or a very critical product of your project, rely on suppliers. Okay. So what do you do on the Observe piece? So you collect data about this supply. You try to understand how critical is that specific supply for your project delivery. What is the impact of the delay on this kind of supply will make in your project? Is it a really critical, but you do that absolutely before you have any problem.
Ricardo (2m 15s): Then the second moment you start doing orientation, the orientation is, is basically monitor and put it in context. So you try to understand, okay, this supply is critical, but is there any order supply in the arena? Is there any other process around that may suggest that I will have a problem? Which kind of trigger that I should put in place to Decide on that? Which kind of action can I explore before I do something, then you have all this scenario prepared. So it's like, please don't want to be very technical here, but it's like the theory of constraint you identify, which are the very critical constraint on this process.
Ricardo (3m 5s): And then you create the trigger and you say, look, if 15 days the before the planned delivery of this product, I do not here from the supplier on this, this and that. I need to Act and the action will be, I will produce it internally. I will identify another supplier. And then you need quickly do that because then you preserve your agility. You don't wait the delay on the delivery to make a decision. So you anticipate. I'm not saying that you we'll do this for everything in your project, but for the critical, critical pieces, you will do that. Because then you are back to the core of your project.
Ricardo (3m 45s): So when you have to decide, the decision is almost translated, what you want into action. So you don't need to go back because what is the main problem is that many times we go to observe and orient after the problem is on the table. So you need to do that. Let me tell you one case in the project side, I was doing this. This was long time ago and steel oven the repairment so the replacement of the refractories and this on the oven and one of the biggest problems on this kind of project is that when the oven is cooling down. So it's very important that the steel flows nicely on the oven, because it makes easier for you later to remove the bricks inside.
Ricardo (4m 36s): But what may happen, maybe the weather, maybe this, the steel can become solid inside that, and then you need to make an explosion inside the oven to remove this, it is a controlled explosion. And this may happen. So if you don't use OODA Loop what do you do, would you have to decide when someone comes to you and say, sorry, the project will be late because now we have, the steel stuck inside oven, and then you need to do a procurement process, identify a supplier that can explode on this. So let me give you an example. It's like a mitigation plan. So you, observe this, so first you observe.
Ricardo (5m 19s): Which time of the year I'm doing the the stop, the maintenance I wanted to understand how long does it take the supplying process in my organization? Which are the critical pieces of information if I need to explode, which kind do I need to have approval from the fire department, which in look, there is no problem yet. Then I monitor it. Look, how is the marketplace on the explosives in this? And then you can decide. So, for example, in this case, what I decided to do, I had an agreement with an explosive company and the agreement has two lines. I paid them X amount of money for the mobilization.
Ricardo (5m 59s): What is mobilization? They will stop the car with explosives and everything, and they will be ready to Act. If I don't need, I will pay them for this mobilization. If I need them, I will pay the additional cost for the use of explosives. And this, just to give you an idea, we had to use them and this saved almost one day on the stop. So imagine in a large organization, you stoping a critical process, just that was about $15 million in savings, I'm saying In not expenditures because we saved this day. This is a very clear example of the use of this OODA Loop.
Ricardo (6m 42s): So what I suggest you to do now, of course, it's not, seven minutes is not enough to explain this go to the web, take a look on the OODA loop, okay, or body loop. So you can see there is a very nice flow. And I think that this will increase your ability. Above and beyond the PMBOK, above and beyond the methodology to understand how active and how proactive you should decide when you face challenges in your project. So I hope you enjoyed this podcast sorry for that eight minutes. I promise the next time I will keep up to five and to the next week and another five minutes PM Podcast take care.
