📅 2025-10-15 11:00
🕒 Reading time: 8 min
🏷️ OODA
The week following the resolution of NordicPure Foods' Blue Ocean Strategy case, a consultation arrived from the Middle East regarding urban transportation business agility. This case, the 256th episode of the twentieth volume "Integration of Practice," concerned the challenge of rapid decision-making to adapt to rapidly changing market environments.
"Detective, we operate rideshare and integrated public transportation mobility services in Dubai, but market changes are so rapid that situations change before we can execute plans. PDCA cycles can't keep up."
Ali Al-Mansouri, Chief Operating Officer at MoveFlow Middle East from Dubai, visited 221B Baker Street unable to hide his sense of urgency. In his hands, he held meticulous business plans alongside daily changing market data—a stark contrast.
"We're a company providing next-generation mobility services across the Middle East. We operate a platform integrating autonomous vehicles, electric scooters, and microbuses, but regulatory changes, competitor entries, and technological innovations occur weekly, and our strategy can't keep pace."
MoveFlow Middle East's Business Scale and Environmental Changes: - Founded: 2019 (mobility startup) - Service Areas: UAE, Saudi Arabia, Qatar - Daily Users: 180,000 - Annual Revenue: ¥8.5 billion - Employees: 850
The numbers showed growth. However, deep anxiety was etched on Ali's face.
"The problem is that the more time we spend planning, the more the situation has changed by execution time. Strategies taking 3 months become obsolete overnight due to regulatory changes. Competitors launch new services within a week. We can't respond at this speed."
Environmental Change Speed and PDCA Limitations: - Regulatory change frequency: Average 2 major regulatory changes monthly - Competitor trends: New services and price changes weekly - Technological innovation: Autonomous driving levels evolve quarterly - Customer needs: Trends shift overnight on social media - Planning cycle: PDCA takes 3 months → Outdated by execution
"We spend too much time on 'Plan' and by the time we 'Do,' it's too late. Isn't there a faster way to move?"
"Mr. Al-Mansouri, what process currently handles responses to market changes?"
Holmes inquired quietly.
Ali began explaining the current situation with a bitter expression.
"Basically, we follow the PDCA cycle. First, create detailed plans, obtain approvals, execute, then verify results. However, this process takes at minimum 2-3 months, and situations change during that time."
Current Decision-Making Process (PDCA-Type):
Plan Phase: 4-6 weeks - Market research: Competitor analysis, customer needs surveys - Strategy formulation: Create detailed business plans - Budget planning: Financial simulation, ROI calculation - Approval process: Deliberation and approval at management meetings
Do Phase: 4-8 weeks - System development: Development of new features and services - Marketing: Campaign planning and execution - Operations: Building operational structure - Monitoring: Start KPI measurement
Problem Case: Autonomous Taxi Introduction Plan
Week 1-6 (Plan): - Formulated detailed introduction plan - Prior consultation with regulatory authorities - Budget approval (investment amount ¥1.2 billion)
Week 7-8: - Immediately after plan approval, regulations suddenly changed - Additional permit requirements added - Major plan review necessary
Week 9-10: - Competitor launched similar service first - Lost first-mover advantage - Market expectations changed
Result: 3 months spent planning, market environment drastically changed during that time, forcing reconsideration of investment decisions
I noted the rigidity of plan-focused approaches.
"Detailed planning increases certainty but sacrifices speed."
Ali responded with a serious expression.
"Exactly. I'm troubled whether to prioritize certainty or speed."
"Observe, Orient, Decide, Act. Cycle from observation to action at maximum speed."
"The battlefield changes moment by moment. Those who quickly see, judge, and move survive."
"The OODA Loop is the technology of responsiveness. In fast-changing environments, speed is competitiveness."
The three members began their analysis. Gemini deployed a "Mobility Industry-Specific OODA Analysis" framework on the whiteboard.
The OODA Loop's Four Stages: - O (Observe): Observation - Quickly observe situations and gather information - O (Orient): Situational Judgment - Analyze information and understand meaning - D (Decide): Decision-Making - Rapidly determine course of action - A (Act): Action - Execute immediately and observe results
"Mr. Al-Mansouri, let's accelerate MoveFlow's decision-making through the OODA Loop."
MoveFlow Middle East's OODA Loop Implementation:
Phase 1: Building Real-Time Observation System (1 month)
Accelerating Observe (Observation):
Market Monitoring Dashboard: - Usage data: Real-time visualization of demand and supply - Competitor trends: Automatic detection of competitor service and price changes - Social media analysis: AI analyzes customer voices, extracts trends - Regulatory information: Immediately catches government announcements
Speeding Orient (Situational Judgment):
Weekly Strategy Meeting (1 hour): - Participants: Only 5 management members (decision-makers only) - Agenda: Opportunities and threats visible from observation data - Analysis: Understanding essence of "why this is happening" - Preparation: Consider multiple action options
Phase 2: Practicing High-Speed Decision-Making (Ongoing)
Accelerating Decide (Decision-Making):
Example: Response to Electric Scooter Regulatory Change
Day 1 (Tuesday): - Observe: Government announces electric scooter regulation relaxation (speed limit 25km/h → 35km/h) - Orient: Opportunity for increased demand. Competitors have the same information - Decide: Decide to introduce new model within the week (conventionally would take 2-month planning period)
Day 2-3 (Wednesday-Thursday): - Act: Emergency negotiations with existing suppliers, secured 500 units of 35km/h compatible models - Observe: Competitors still in consideration stage, no movement yet
Day 4-5 (Friday-Saturday): - Act: Introduced new model, launched "Regulation Relaxation Memorial Campaign" - Observe: Became social media topic, applications triple normal
Result: Responded 2 weeks ahead of competitors, gained first-mover advantage
Mobilizing Act (Action):
Culture of Small-Scale Experiments: - Small-scale rapid testing before large investments - Hypothesis validation in 1 week, decide on full deployment based on results - Minimize failure costs
Example: Late-Night Bus Route Experiment
Week 1 (Observe): Observed numerous social media voices saying "no late-night transportation"
Week 1 (Orient): Late-night demand exists but profitability unknown. Should validate through small-scale test
Week 1 (Decide): Decided on 1 route only, 2-week limited late-night bus trial operation
Week 2-3 (Act & Observe): Trial operation. Daily collection of usage rate and profitability data
Week 4 (Orient & Decide): Data analysis results confirmed profitability. Decided on expansion to 5 routes
Conventional (PDCA) would be: 2 months planning, 1 month approval, total 3 months before start
OODA Implementation: Started experiment in 1 week, decided full deployment in 4 weeks
Results After 12 Months:
Dramatic Business Results: - Daily users: 180,000 → 420,000 (2.3x) - Annual revenue: ¥8.5 billion → ¥22 billion (2.6x) - Market share: UAE market 12% → 38% (gained top share) - New service launches: 4/year → 24/year (6x development speed)
Competitive Advantage Through OODA:
Dominating Through Speed: - Market change response: Average 2 weeks ahead of competitors - New service launches: 3x competitor speed - Regulatory change response: Same-day response (competitors take weeks)
Improved Learning Speed: - Small-scale experiments: 8-12 conducted monthly - Learning from failures: Quickly recognize failures, pivot - Deepening market understanding: Market understanding accelerates through high-frequency experiments
Organizational Culture Transformation:
Conventional (PDCA Culture): - Plan-focused: Seeking perfect plans - Avoiding failure: Fearful of failure, cautious - Approval-focused: Multi-layered approval processes
Current (OODA Culture): - Action-focused: First try, then learn - Utilizing failure: View failure as learning opportunity - Delegated authority: Respect on-site judgment
Employee Voices:
Business Development Manager (35 years old): "Previously, writing plans alone took a month. Now we can experiment in a week. This speed is exciting."
Operations Director (42 years old): "On-site judgment allows immediate small improvements. Looking at customer reactions, we evolve daily."
Holmes compiled his comprehensive analysis.
"Mr. Al-Mansouri, the essence of the OODA Loop is 'responsiveness.' In fast-changing environments, quick action is more important than perfect planning. The battlefield changes moment by moment. Those who quickly see, judge, and move survive."
Final Report After 24 Months:
MoveFlow Middle East became the leader in Middle Eastern mobility markets.
Final Results: - Daily users: 180,000 → 650,000 (3.6x) - Annual revenue: ¥8.5 billion → ¥38 billion (4.5x) - Market share: Top in Middle Eastern mobility market (42%) - Corporate value: 8x increase
The letter from Ali contained deep gratitude:
"Through the OODA Loop, we evolved from a 'planning company' to a 'responsive company.' Most important was prioritizing speed over perfection. The market doesn't wait for us. Moving quickly, learning, adapting—that repetition created overwhelming competitive advantage."
That evening, I contemplated the speed of decision-making.
The true value of the OODA Loop lies in its effectiveness in highly uncertain environments. Trying to create perfect plans takes time. However, situations change during that time, making plans obsolete.
Quickly observe, judge, and act. Then observe those results again. Cycling through this loop at high speed becomes competitive advantage in an era of rapid change.
"Certainty is illusion. In an uncertain world, speed itself is the only certainty."
The next case will also depict the moment when agility opens up a company's future.
"Those who adapt to change don't survive. Those who anticipate change win."—From the Detective's Notes
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