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Crisis Decision Making and Failing Fast

John Boyd was fighter pilot and military strategist who developed the idea of the OODA loop in 1976.

Crisis is the ultimate crucible of leadership. When events move faster than planning cycles and uncertainty clouds judgment, the difference between survival and failure is rarely the availability of information. It’s the speed and decisiveness of the response. Indecision, not error, is often the greatest threat.

The OODA Loop: A Time-Tested Decision Framework

One of the most enduring models for navigating uncertainty is the OODA Loop, developed by U.S. Air Force Colonel John Boyd. OODA stands for Observe, Orient, Decide, Act. Originally conceived for aerial combat, it has since been adopted widely in business and military strategy alike (Boyd, 1986).

The power of the OODA Loop lies in its iterative nature. Leaders observe the environment, orient to changing priorities or threats, make a decision, even if imperfect, and act. Critically, this is not a one-time process. The faster and more accurately a leader can cycle through the loop, the greater their advantage over unfolding chaos.

In a crisis, perfection is the enemy of progress. For example, a supply chain failure demands swift reorientation, not endless data gathering. Leaders who can make directionally correct decisions with limited information, then adapt as needed, will maintain momentum while others stall in “paralysis by analysis.”

Fail Fast—But Fail Smart

Complementing the OODA framework is the fail-fast mindset. Often misunderstood, failing fast is not about failing frequently or carelessly, it’s about learning rapidly, adjusting course quickly, and removing the stigma around controlled, calculated failures.

In organisations where innovation and responsiveness matter, failure is inevitable. The goal is not to prevent all mistakes, but to identify and recover from them faster than the competition. As Amazon’s Jeff Bezos once said, “If you’re going to take bold bets, they’re going to be experiments. And if they’re experiments, you don’t know ahead of time if they’re going to work” (Bezos, 2018).

Too many leaders unwittingly create cultures of risk aversion by punishing all failure equally. In contrast, military forces routinely conduct after-action reviews. Structured debriefs not to assign blame, but to extract lessons. The same approach applies in business: leaders must enable intelligent risk-taking and ensure feedback loops are tight and focused on improvement.

Principles for Embedding a Fail-Fast, High-Decisiveness Culture

Clarify intent, not just tasks

Drawing from mission command doctrine, empower teams with a clear understanding of the why. When people understand intent, they can act responsibly without micromanagement, even in dynamic conditions.Define risk boundaries
Good leaders create clear lines between acceptable autonomy and when escalation is needed. This fosters ownership while managing exposure.

1. Run simulations and rehearsals

Just as the military conducts drills, businesses should use scenario planning to prepare teams for disruption. Role-playing crisis responses in advance creates muscle memory for when the real test comes.

2. Conduct post-mortems without blame

A high-trust environment allows teams to evaluate outcomes objectively. Ask: What did we learn? What should we repeat or change?

3. Model decisiveness and humility

Leaders must be willing to act decisively, but also to change direction when required. When you openly admit a misstep, your team learns to do the same.

Case in Point: COVID-19

During the early stages of the COVID-19 pandemic, some companies adapted overnight by shifting to remote work, securing alternate suppliers, or launching new digital channels. Others waited for certainty. The former group, those who acted early and adjusted fast, came out stronger. They didn’t have more data. They had more decisiveness and a fail-fast mindset.

Leadership in Crisis = Speed + Discipline + Adaptability

Crises, whether cyberattacks, market collapses, or natural disasters, will come. The organisations that thrive are those with leaders who:

  • Act without delay,
  • Adapt without ego, and
  • Learn without blame.

The combination of a structured decision-making model (like OODA) and a fail-fast culture is a leadership force multiplier. It builds teams that are prepared, not paralysed. Proactive, not reactive.

In the end, crisis leadership is not about knowing everything. It’s about acting with intent, adjusting with speed, and leading with humility.

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