BHB and Real Estate’s OODA Loop.

by Chris Johnson

Instigator, anthill kicker.

Author website

The reason that I became a part of BHB was because BHB wants to matter most.  I don’t agree with everything Greg says or does (and he doesn’t always agree with me), but the core ethos at BHB is peerless.  It’s the same reason why I dug the Smashing Pumpkins so much.  Like him or not, Billy wanted to be the best rock band that rock and roll has ever seen.  He took title shot after title shot.  He didn’t make it, but we are all enriched for his efforts.   BHB is full of people that want to raise the bar so high that everyone benefits.  BHB wants to be the best RE blog ever, and we’re doing it, and I get to be part of it.  Oh, the fun.

But why to we have a head start?  It’s about the ideas, and it’s about the ethos of being independent, fierce, smart and fast.  Getting ideas out here quickly, with no rules, no committee is the best thing we do here.  And so, for those (few) of you that aren’t familiar with the OODA loop, I had to call it to your attention.

This is what BHB is doing doing, and it comes from a famous fighter pilot.

Observe, Orient, Decide, Act.  Repeat.

From wikipedia:

By observing and reacting to events more quickly than an opponent, you can ‘get inside,’ their decision cycle and gain advantage.

An image:

Zillow was the most obvious example. 

When you’re inside the loop, you’re disrupting others and forcing them to react to you.  Zillow got inside the NAR’s loop with the Zestimate, and changed the industry.  The NAR reacted, but now has to consider Zillow (and all transparency implications that come with free data) in everything they do.  Everyone benefits when we crash the loop of a bad actor, and we’re all in Zillow’s debt because the NAR has to get better–or else they risk being irrelevant.

We benefit when we crash anyone’s loop because once we can do that once, we can repeat the process ad infinitum, and crash other loops.  We learn how to play the game, and the rules that work in taking over a subdivision can work for taking over an industry.

The OODA loop emphasizes speed over all else.  This is the one area where solo survivors have a built in advantage.  Like Sun Tzu, ODDA considers speed the holy grail, and making a fast and action oriented decision is way more important than thinking everything through.   Learn the playing field (observe/orient) act, see what the changes your actions created, act.  Then you’re moving fast, and knocking out your competition.  You’ve got a dizzying amount of information coming at them in a short time, and your opponents have to fight back on your terms.  

So, if you wanted to knock out a mega agent in their neighborhood, what could you offer that a big megateam couldn’t?

If you’re a loan officer, and want to get the best clients, how do you beat entrenched loan officers and cause them to have to defend their positions and change what they are doing?

Google also is getting in Microsoft’s OODA loop by moving the desktop to the cloud.  Apple got in everyone’s OODA with the Imac, Ipod and Iphone.  There are other examples.   What follows is a super basic OODA primer.

Observe…

To make the world the way you want it, first, you have to look at the way things really are.  What are people doing right now–what’s REALLY happening, TODAY.  Getting rid of the way we want things to be for a second to see what’s going on.   Just flat out: what deals are closing, who’s doing business?  Pore over data, spend at least an hour a week with your relevant market (and you define your market) data.  You have to know the playing field first.

Then You Orient:

Where do you have an advantage?  Look for anomalies example: 15 sales by one realtor.  A neighborhood with no foreclosures.  Where are the efficiencies, where can you gain a on your competition?   Where can you create blue oceans?   Where are you weak, and how do you cover your weaknesses?   Where are you naturally inclined to take action?

Then Decide:

Pick a strategy that emphasizes your strengths.  Make sure you’re aware of your softspots, but focus on using your strengths to win.   Realize that you have built in advantages, and whether it’s being able to cold call, or looking like a supermodel, take an action that uses your strengths. 

Then Act:

So, if I’m trying to win, I want to have a net balance of business go in my favor.  I have seen the landscape, I’ve seen what I can do, I’ve made a decision, then I do it full on, with no holding back.  When we act, we can’t half ass anything.  We must go for it, balls out, with gusto, ferocity and presumption.  Remember: when we are ACTING, we’re remaking the world as we want it to be.  There may be resistance.  Bust through it.

The next thing to do is see how you’ve changed the world…and start the process over again.  This is what BHB is about; teaching you how this loop works in a roundabout way.  The process becomes intuitive once you name it, and it guides actions.  We have to act fast, fast fast fast fast.  Not perfect, but fast.  Then we act again based on the new world we created. 

Do you think we’ve gotten into (must click) ePerks’s Ben Behrouzi‘s loop yet?

Let’s force this world to be the way it’s supposed to be, by reacting faster and crashing the loops of bad actors.

What are some loops that need to be crashed?

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For further reading on Boyd (not affiliate links, not that there’s anything wrong with affiliate links)

Boyd: The Fighter Pilot that Changed the Art of War by Robert Cornam

and HIGHLY recommended:

A Swift Elusive Sword by Chester Richards