Applicability of The OODA Loop
Consider a fighter pilot being scrambled to shoot down an enemy aircraft.
Before the enemy airplane is even within visual contact range, the pilot will consider any available information about the likely identity of the enemy pilot: his nationality, level of training, and cultural traditions that may come into play.
When the enemy aircraft comes into radar contact, more direct information about the speed, size, and maneuverability, of the enemy plane becomes available; unfolding circumstances take priority over radio chatter. A first decision is made based on the available information so far: the pilot decides to "get into the sun" above his opponent, and acts by applying control inputs to climb. Back to observation: is the attacker reacting to the change of altitude? Then to orient: is the enemy reacting characteristically, or perhaps acting like a noncombatant? Is his plane exhibiting better-than-expected performance?
As the dogfight begins, little time is devoted to orienting unless some new information pertaining to the actual identity or intent of the attacker comes into play. Information cascades in real time, and the pilot does not have time to process it consciously; the pilot reacts as he is trained to, and conscious thought is directed to supervising the flow of action and reaction, continuously repeating the OODA cycle. Simultaneously, the opponent is going through the same cycle.
How does one interfere with an opponent's OODA cycle? One of John Boyd's primary insights in fighter combat was that it is vital to change speed and direction faster than the opponent. This is not necessarily a function of the plane's ability to maneuver, rather the pilot must think and act faster than the opponent can think and act. Getting "inside" the cycle—short-circuiting the opponent's thinking processes—produces opportunities for the opponent to react inappropriately.
Another tactical-level example can be found on the basketball court, where a player takes possession of the ball and must get past an opponent who is taller or faster. A straight dribble or pass is unlikely to succeed. Instead the player may engage in a rapid and elaborate series of body movements designed to befuddle the opponent and deny him the ability to take advantage of his superior size or speed. At a basic level of play, this may be merely a series of fakes, with the hope that the opponent will make a mistake or an opening will occur, but practice and mental focus may allow one to accelerate tempo, get inside the opponent's OODA loop and take control of the situation—to cause the opponent to move in a particular way, and generate an advantage rather than merely react to an accident. Taking control of the situation is key. It is not enough to speed through OODA faster -- that results in flailing.
The same cycle operates over a longer timescale in a competitive business landscape, and the same logic applies. Decision makers gather information (observe), form hypotheses about customer activity and the intentions of competitors (orient), make decisions, and act on them. The cycle is repeated continuously. The aggressive and conscious application of the process gives a business advantage over a competitor who is merely reacting to conditions as they occur, or has poor awareness of the situation.
The approach favors agility over raw power in dealing with human opponents in any endeavor. John Boyd put this ethos into practice with his work for the USAF. He was an advocate of maneuverable fighter aircraft, in contrast to the heavy, powerful jet fighters that were prevalent in the 1960s, such as the F-4 Phantom II and General Dynamics F-111. Boyd inspired the Light Weight Fighter Project that produced the successful F-16 Fighting Falcon and F/A-18 Hornet, which are still in use by the United States and several other military powers into the 21st century.
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