John Donne (1572-1631) once wrote, ". . . no man is an island, entire of itself; every man is a piece of the continent, a part of the main." An organisation is not an island either and it can only exist in the long term if it can manage its external affairs well - and there is a high risk of failure if it can't.

We live in two worlds: the external (real) world of events, announcements, stories, opinions, and intentions of others, and our internal (represented) world made up of our depictions, interpretations, impressions, emotions, and reactions to the real world.

Our inward flow of data and information about the external world comes through our senses while the outward flow of responses comes as a result of our decisions and actions. However there are often impediments or bottlenecks to the smooth interchange of the external and internal worlds.

Our ability to correctly observe and understand what's happening in the external world is shaped largely by our mental models of how the world works but, unfortunately, our mental models are often incomplete or out-of-date. When this happens we are likely to become confused and lose control over our situation, as what happens when we suddenly come upon 'black ice' on the road and our car no longer behaves in the way we expect it to.

External Affairs Risk Management (EARM) is defined as our ability to detect, direct, decide and deliver timely responses to external opportunities and hazards. The paper describes a closed-loop model for maintaining control over our situation and identifies where we need to focus our knowledge management efforts in order to enhance our capabilities for delivering timely responses. Finally, it suggests how we can determine our external affairs risk profile through the use of diagnostic tools and other means.

The model is a refinement of a proven information management model called the Boyd Cycle or OODA Loop that was developed for the US Air Force. This model is the basis of the rapid decision-making process of combat pilots and has influenced the design of the modern light-weight fighter aircraft, such as the highly maneuverable F-16 fighter. The OODA Loop has also been adopted by the US Marine Corps for their maneuver warfare decision making and is now finding application in commercial organisations.

Woodlawn Marketing Services is a Melbourne-based consultancy specialising in marketing research and competitive intelligence activity, as a foundation for business and marketing planning.

Contact us for more information.

To find out how we can assist you, complete the Enquiry Form.