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produced, and time and budget. Also lay out other expenses in areas such as systems operation, staff training, and salaries. With this information people can assess the situation and look for new threats and opportunities in the IT environment. In the third step, decide, people (1) investigate different responses to threats and opportunities and (2) create and evaluate plans for implementing different responses. In an IT organization, that means creation, evaluation, planning, and budgets for different system architectures and development projects. IT staff members consult with people from the business units who will be users of potential new systems. Choosing the most appropriate plans leads to the fourth step act. Depending on the decisions made in the orient and decide steps, the act step results in a tactical action that either improves an existing process (Loop 2) or creates a new process (Loop 3). In the act step, action is taken with either favorable, not favorable, or indeterminate results. These results are picked up in the observe step and the loop continues. Note that the Boyd Cycle does not require people to cycle through all four steps all of the time. It is not a lock-step sequence. For example, the decide step is not needed when an environment is well understood. People can simply cycle quickly between orient and act steps in a series of rapid responses. At other times people may decide not to act at all but just observe and orient, waiting for an appropriate opportunity to act. It is better to think of the Boyd Cycle as an interactive network of activities with the orient step at its core instead of a fixed sequence of steps, as illustrated in Exhibit 3.2.2 Most Important Step: Orient Let s take a closer look at the orient step because it is the most important. People form a picture of the world in the orient step, and this picture of the world drives the decisions and actions that follow. Good orientation is central to one s ability to take effective tactical action and achieve desirable results. The orient step needs the most support from business intelligence (BI) capabilities. The real world unfolds in an irregular, disorderly, unpredictable manner as Colonel Boyd put it. Effective CIOs watch their business and IT
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chapter 3
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a strategically focused it organization
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ORIENT
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OBSERVE
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Implicit guidance Explicit guidance
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DECIDE
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EXHIBIT
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The Boyd Cycle
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environments and make decisions about how best to respond as day-to-day and week-to-week situations unfold. Dashboards and other Web-based reporting systems significantly improve outcomes in this step. Another major concept of the Boyd Cycle implies that everyone in an agile organization has a common understanding of the organization s purpose and its major objectives. In military organizations this is known as the commander s intent or the mission orders people are told what needs to be done but they are not told how to do it. They are not micromanaged; instead they are trusted to do the right thing. The Boyd Cycle expresses common understanding of purpose with the notions of implicit guidance and explicit guidance. When the IT staff knows what the CIO expects of them and when they possess accurate, timely information about their own performance, then they can take their own corrective actions as demanded by the situation without waiting to be told what to do. If the CIO defines performance objectives for the IT organization and makes performance data available via dashboards and other BI systems, people do not need to be micro-managed. They can see for themselves what the situation demands and act appropriately. In this way the CIO provides implicit guidance to the IT organization. As shown by the heavier lines on the Boyd Cycle diagram, the best CIOs most often make use of implicit guidance. CIOs provide explicit guidance when they make decisions to change
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