The OODA loop was popularized by U.S. Air Force fighter pilot Colonel John Boyd to describe maneuver warfare during the Korean War. The OODA loop is a four-step approach to decision making where strategies must be adjusted quickly. Those four steps comprise observe, orient, decide, and act.
The take-the-best heuristic is a decision-making shortcut that helps an individual choose between several alternatives. The take-the-best (TTB) heuristic decides between two or more alternatives based on a single good attribute, otherwise known as a cue. In the process, less desirable attributes are ignored.
A decision matrix is a decision-making tool that evaluates and prioritizes a list of options. Decision matrices are useful when: A list of options must be trimmed to a single choice. A decision must be made based on several criteria. A list of criteria has been made manageable through the process of elimination.
A cost-benefit analysis is a process a business can use to analyze decisions according to the costs associated with making that decision. For a costanalysis to be effective it’s important to articulate the project in the simplest terms possible, identify the costs, determine the benefits of project implementation, assess the alternatives.
In general, terms, go/no-go decision making is a process of passing or failing a proposition. Each proposition is assessed according to criteria that determine whether a project advances to the next stage. The outcome of the go/no-go decision making is to assess whether to go or not to go with a project, or perhaps proceed with caveats.
In the FourWeekMBA growth matrix, you can apply growth for existing customers by tackling the same problems (gain mode). Or by tackling existing problems, for new customers (expand mode). Or by tackling new problems for existing customers (extend mode). Or perhaps by tackling whole new problems for new customers (reinvent mode).
In the FourWeekMBA Revenue Streams Matrix, revenue streams are classified according to the kind of interactions the business has with its key customers. The first dimension is the “Frequency” of interaction with the key customer. As the second dimension, there is the “Ownership” of the interaction with the key customer.
Key Highlights of Decision-Making Concepts:
OODA Loop: The OODA loop, introduced by Colonel John Boyd, is a four-step decision-making approach – Observe, Orient, Decide, Act. It emphasizes quick adjustments in strategies, particularly in dynamic environments like warfare.
Take-The-Best Heuristic: The take-the-best heuristic is a decision-making shortcut where alternatives are evaluated based on a single good attribute (cue), ignoring less desirable attributes.
Decision Matrix: A decision matrix is a tool used to evaluate and prioritize options based on multiple criteria. It helps in making complex decisions by systematically comparing alternatives.
Cost-Benefit Analysis: A cost-benefit analysis assesses decisions based on costs and benefits. It helps businesses evaluate projects by identifying costs, benefits, and potential alternatives.
Go/No-Go Decision: Go/no-go decision making involves evaluating propositions against predetermined criteria to determine whether a project should proceed, be rejected, or have conditions applied.
Speed-Reversibility: Speed-reversibility is a decision-making principle that considers the trade-off between the speed of a decision and its potential to be reversed. Critical decisions may require more time to ensure they are made correctly.
Asymmetric Betting: Asymmetric betting involves making decisions where the potential upside greatly outweighs the potential downside, creating a favorable risk-reward ratio.
Growth Matrix: The FourWeekMBA growth matrix categorizes growth strategies into four modes: gain, expand, extend, and reinvent. It guides businesses in choosing growth paths based on targeting existing/new customers and solving existing/new problems.
Revenue Streams Matrix: The FourWeekMBA Revenue Streams Matrix classifies revenue streams based on interactions with key customers. It considers the frequency and ownership of interactions to define revenue generation strategies.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
