Neural Business refers to a company's decision to mimic brain design and structure rather than the traditional power sharing structure around functional lines. Neural companies organize around distinct processing nodes and spheres designed to handle messages from highly specialized sensors. By organizing around learning, decision making, and recall the company remains adaptive and is capable of maintaining its edge in a rapidly changing world. Is your Organization Neural?

1. Neural Business and OODA,
21st Century Business
In the Evolving
Network Centric World
LTC(R) Michael A. “Lucky” LaChance

2. 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 and
ultimately a position of advantage.
Definitions
2O-O-D-A
1Neural Network

3. 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
Neural
Network

4. Neural Organizations Are:
Adaptive
Create vast interconnected functional spheres of influence and
connectivity in order to learn and maintain .
Collaborative
Readily share knowledge between nodes and seeks out
cross functional assessments and engagement
Speedy
Maintain speed of decisions in order to learn, observe
and orient faster
Decisive
Acts to shore up assumptions and initiate the next
OODA cycle
4Decisive
3Speedy
2Collaborative
1Adaptive

5. Network Structures
Knowledge Nodes
People 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 Communication
Routes 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

6. The Skills (Enzymes)
Information Management
The art and science of cataloguing and retrieving elements of data
and knowledge
Sense Making
The art and science of discerning meaning and purpose
from seemingly purposeless action, facts and data.
Knowledge Management
The art and science of assessing critical insight gaps
and the targeted acquisition of new insight
Decision Management
The art and science of knowing when and if to decide
and the art of anticipating outcomes
Action and Situation Management
The art and science of synchronizing activities
and monitoring progress to achieve desired
outcomes
5Action
Management
4Decision
Management
3Knowledge
Management
2Sense
Making
1Information
Management

7. The Process
Observe
Compare assumptions against reality
Orient
Discover patterns, consider options, anticipate
immediate outcomes
Decide
Make a choice to do something differently
Act
take positive measureable steps towards
accomplishing the indented outcome4Act
3Decide
2Orient
1Observe
Air Force Colonel John Boyd (1927-1997) first coined the term OODA Loop to describe a high
stakes, tactical combat decision-making pattern.

8. 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

9. 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 culture
Action begets knowledge which in turn provides
market advantage
OODA dislocates competitors
When a company acts faster they dislocate and
confuse the competition (market and temporal)
OODA creates adaptive organizations
Because 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
1Certainty

10. 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)
Neural Spheres, Purpose and OODA Alignment
Neural-Co

11. Neural-Co Organization
Sphere
IT
Ops
Finance
Sales
IT
Infrastru-
cture
Marketing
Data
Steward
Ops Data
Steward
Financial
Data
Steward
Sales
Data
Steward
IT Data
Steward
Operation
Manager
Financial
Analyst
BI Analyst
CIO
Marketing
Data
Steward
VP
Finance
VP Ops
Product
Manager
CTO
COO
CFO
CEO
VP
Business
Intelligen
ce
CEO
COOCFO
Communi
cations
Director
COO
Controller
SVP Sales
Product
Dev
Dir Ops
Acct Mgr
VP
Marketing
Marketing
Manager
Sales
Analyst
VP
Planning
Strategy

12. Information Management
IT
Infrastru-
cture
Marketing
Data
Steward
Ops Data
Steward
Financial
Data
Steward
Sales
Data
Steward
IT Data
Steward
Mission
The 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
2
Duties
1Mission
Sphere Sponsor : CIO
Primary Node: Corporate Infrastructure
Sphere LOCS: Data Stewards

13. Sense Making
Mission
Review 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
2
Duties
1Mission
Sphere Sponsor : CEO
Primary Node: VP Business Intelligence
Sphere LOCS: Analysts
Operation
Manager
Financial
Analyst
BI Analyst
Marketing
Manager
Sales
Analyst

14. Knowledge Management
Mission: 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
2
Duties
1Mission
Sphere Sponsor : COO
Primary Node: VP of Planning/Strategy
Sphere LOCS: VPs
CIO
Marketing
Data
Steward
VP
Finance
VP Ops
Product
Manager
VP
Planning
Strategy
• 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

15. Decision Management
Mission: 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.
2
Duties
1Mission
Sphere Sponsor : BOD
Primary Node: CEO
Sphere 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

16. Action Management
Mission: 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
2
Duties
1Mission
Sphere Sponsor : CEO
Primary Node: COO
Sphere LOCS: VPs
COO
Controller
SVP Sales
Product
Dev
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

17. Situation Management
Mission: 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.
2
Duties
1Mission
Sphere Sponsor : BOD
Primary Node: Communications
Sphere LOCS: Spheres and BOD
VP
Business
Intelligen
ce
CEO
COOCFO
Communi
cations
Director

18. 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.