Now it uses o'clock directions, which are ordered relative to current squad position, which often is hard to determine in chaotic combat situations. The former system, which used compass directions was much more intuitive and unequivocal.
"Watch north" has only one possible meaning and outcome, while the execution of "watch 3 o'clock" could be surprising at the worst time.
EDIT: Thinking more of it, I'd suggest dropping o'clock system from everywhere, in favour of compass directions. An example could be reports from AI about spotted enemys or ordering the squad to move etc.
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Would also love to see in MP where you spot an enemy and to give the coordinates to your side you press the compass button and then fire or some other chosen button at which point your character voices out contact 345deg etc.