Neural Business and OODA,

21st Century BusinessIn the Evolving

Network Centric World

LTC(R) Michael A. “Lucky” LaChance

Neural: having the characteristics of an electrically excitable cell that processes and transmits information to the cortex Network: a group of two or more cells with interconnecting lines of communication

O-O-D-A The cyclical process of Observing, Orienting, Deciding and Acting to gain insight, knowledge andultimately a position of advantage.

Definitions

2O-O-D-A

1Neural Network

Both structures are composed of distinct nodes processing regions and communication channels to accomplish any set of tasks. Both receive inputs from highly specialized sensors, and each is capable of rapid learning and adaptation Is your Organization Neural?

The Paradigm

http://thinkaurelius.files.wordpress.com/2012/05/wikipedia-category-structure.png?w=500

Brain

NeuralNetwork

Neural Organizations Are:AdaptiveCreate vast interconnected functional spheres of influence and connectivity in order to learn and maintain .

CollaborativeReadily share knowledge between nodes and seeks out cross functional assessments and engagement

SpeedyMaintain speed of decisions in order to learn, observe and orient faster

DecisiveActs to shore up assumptions and initiate the next OODA cycle4

Decisive

3Speedy

2Collaborativ

e

1Adaptive

Network Structures

Knowledge NodesPeople or Systems in the organization where functional information is exchanged, observed, or transmitted to another part of the organization. Nodes serve as highly specialized sensory transmitters and receptors of data and knowledge across the organization.

(technology enabled)

Lines of CommunicationRoutes of information and knowledge transmission between nodes (internal and external to the organization) and knowledge spheres

Knowledge Spheres Like the brain, knowledge spheres (processing centers) receive sensory data from highly specialized collection of sensory cells (knowledge nodes). Knowledge spheres provide unique perspective and highly specialized processing to the cortex (company).

1Nodes

2LOCs

3Spheres

The Skills (Enzymes)Information ManagementThe art and science of cataloguing and retrieving elements of data and knowledge

Sense MakingThe art and science of discerning meaning and purpose from seemingly purposeless action, facts and data.

Knowledge ManagementThe art and science of assessing critical insight gaps and the targeted acquisition of new insight

Decision ManagementThe art and science of knowing when and if to decide and the art of anticipating outcomes

Action and Situation ManagementThe art and science of synchronizing activities and monitoring progress to achieve desired outcomes

5Action

Management

4Decision

Management

3Knowledge

Management

2Sense

Making

1Information

Management

The ProcessObserveCompare assumptions against reality

OrientDiscover patterns, consider options, anticipate immediate outcomes

DecideMake a choice to do something differently

Acttake positive measureable steps towards accomplishing the indented outcome4

Act

3Decide

2Orient

1Observe

Repeat - QuicklyAir Force Colonel John Boyd (1927-1997) first coined the term OODA Loop to describe a high stakes, tactical combat decision-making pattern.

Observe

Orient

Act

Decide

Observe

Orient

Act

Decide

Learning Zone

Limited Options

Effective

Uncertain

Shaping Zone

Confident

Ineffective

Disoriented Focused

Flexible Options

Adapting

Creating Advantage

Reactionary Zone

O-O-D-A Principles 75% is a “GO!”Do not waste precious time and momentum on 100% certainty. Action will beget the last 25% insight – and more

One OODA cycle per quarter (minimum)The rate of decision making determines the pace of organizational learning, insight, adaptation and advantage

Create an action cultureAction begets knowledge which in turn provides market advantage

OODA dislocates competitorsWhen a company acts faster they dislocate and confuse the competition (market and temporal)

OODA creates adaptive organizationsBecause Neural-Co is based on neural networks and focused on action, we are more able to adapt to the changing nature of the market

5Adaptation

4Dislocation

3Action

2Cycle Rate

1Certaint

y

Situational Awareness/ Management(Reporting and Communicating)

Information Management(Catalogue and Retrieve)

Sense Making (Meaning and Purpose)

Knowledge Management (Assessment, Targeted Learning)

Business Action(Synchronized, on Time/Budget)

Decision Management (Right Choice, Right Time)

Observe

Orient

Decide

Act

Communicate

Locate

Neural Spheres, Purpose and OODA Alignment Neural-Co

Neural-Co Organization

SphereITOpsFinanceSales

IT Infrastru-

ctureMarketing

Data Steward

Ops Data Steward

Financial Data

Steward

Sales Data

Steward

IT Data Steward

OperationManager

Financial Analyst

BI Analyst

CIO

Marketing Data

Steward

VP Finance

VP Ops

ProductManager

CTO

COO

CFO

CEO

VP BusinessIntelligen

ce

CEO

COOCFO

CommunicationsDirector

COO

Controller

SVP Sales

ProductDev

Dir Ops

Acct Mgr

VP Marketing

Marketing Manager

Sales Analyst

VPPlanningStrategy

Information Management

Sense Making

Knowledge Management

DecisionManagement Action

Management

SituationManagement

Information ManagementIT

Infrastru-cture

Marketing Data

Steward

Ops Data Steward

Financial Data

Steward

Sales Data

Steward

IT Data Steward

MissionThe information management sphere identifies, tags and indexes business critical knowledge and data to support decision makers and analysts with timely information

• Identifies, tags, and indexes key data for the company.• Manages data and system access • Establishes security rules (HIPAA etc)• Manages User Profiles• Manages the company help desk

2Duties

1Mission

Sphere Sponsor : CIOPrimary Node: Corporate InfrastructureSphere LOCS: Data Stewards

Sense MakingMissionReview and present plausible explanations, vignettes and or stories to reduce uncertainty. Monitors incomplete or unusual data and market phenomenon to support speedy decision making

• Serves as Neural-Co’s primary analytical cell• Utilizes enterprise data, collection and analysis and BI tools • Reduces uncertaintyanomalies that prevent decision making• Presents plausible explanations for observed activities & data• Recommends methods to validate or invalidate conclusions

2Duties

1Mission

Sphere Sponsor : CEOPrimary Node: VP Business IntelligenceSphere LOCS: Analysts

OperationManager

Financial Analyst

BI Analyst

Marketing Manager

Sales Analyst

Knowledge ManagementMission: Identify, catalogue, prioritize and link to pending decisions, the most vexing and impactful questions that must be answered to facilitate further decision making. These requirements are called Priority Intelligence Requirements

2Duties

1Mission

Sphere Sponsor : COO Primary Node: VP of Planning/StrategySphere LOCS: VPs

CIO

Marketing Data

Steward

VP Finance

VP Ops

ProductManager

VPPlanningStrategy

• Neural-Co’s primary Strategic/ Operational Planning Sphere• Identifies knowledge gaps associated with courses of action• Develops collection and analysis plans to fill gaps• Proposes courses of action to achieve Neural-Co vision• Proposes success metrics for COA• Conceptualizes future states and alternative futures

Decision ManagementMission: The Decision Management Sphere provides company vision, guidance, and decisions for Neural-Co so as to establish the market momentum, increase company value and retain temporal and positional advantage.

2Duties

1Mission

Sphere Sponsor : BOD Primary Node: CEOSphere LOCS: Executives

CTO

COO

CFO

CEO

• Communicate the Neural-Co vision• Coordinate and approve the Neural-Co mission statement• Provide strategic direction and operational guidance• Establish & monitor the Common Operational Picture (COP)• Establish, track and report on decisions in time and space• Make decisions in a timely manner

Action ManagementMission: The Action Management Sphere plans and synchronizes operational goals and tactical programs, projects, plans, product development, and other business processes in order to achieve the collective effects and objectives of the Strategic plan

2Duties

1Mission

Sphere Sponsor : CEO Primary Node: COOSphere LOCS: VPs

COO

Controller

SVP Sales

ProductDev

Dir Ops

Acct Mgr

VP Marketing

• Develops, executes and reports on programs, projects, initiatives• Coordinates action between spheres to accomplish the mission• Responsible for Neural-Co’s PD and training programs• Manages daily activities

Situation ManagementMission: The situation management Sphere monitors, and reports on internal and external events, activities, goals against key performance indicators to provide actionable data and situational awareness to the organization as discreet observations and data.

2Duties

1Mission

Sphere Sponsor : BOD Primary Node: Communications Sphere LOCS: Spheres and BOD

VP BusinessIntelligen

ce

CEO

COOCFO

CommunicationsDirector

References:• Col John Boyd : Discourse on Winning and Losing accessed

20 July 2014 http://www.ausairpower.net/JRB/intro.pdf

• LTC(R) Michael A. LaChance. Whiskey and Decisions Blog. “Beer is to Whiskey” http://organizationaldecisions.blogspot.com/2013/08/beer-is-to-whiskey-as-planning-is-to.html, Accessed 20 July 2014.

• Network Centric Organizations. Wikipedia accessed 20 July 2014, http://en.wikipedia.org/wiki/Network-centric_organization.