8) Probabilistic Thinking

  Meaning: Assess outcomes based on likelihood, not certainty.

Why it matters: Makes strategy resilient under uncertainty.

Example: In portfolio decisions, weigh scenarios and probabilities to avoid “all-in” risks.

9) Feedback Loops

Meaning: Systems where outputs become inputs, reinforcing or balancing outcomes.

Why it matters: Great strategies constantly learn and adjust through feedback.

Example: Customer feedback influencing product design improvements.

10) Compounding

Meaning: Small consistent improvements yield exponential returns over time.

Why it matters: Encourages patience and long-term thinking in strategy.

Example: A culture of continuous improvement (Kaizen) compounds into sustained competitive advantage.

LPM is on Amazon

Posted in

Leave a Reply

Discover more from Applied Lean Agile

Subscribe now to keep reading and get access to the full archive.

Continue reading