5) Game Theory
Meaning: Analyze interactions where other’s decision also affect outcomes.
Why it matters: Anticipates competitor or stakeholder reactions to your moves.
Example: A company delays product launch knowing a competitor will overextend trying to beat them to market.
6) Inversion
Meaning: Instead of asking “How can we succeed?”, ask “What would make us all fail?” and avoid those things.
Why it matters: Reduces blind spots and helps build robust strategies.
7) The Pareto Principle (80/20 Rule)
Meaning: 80% of results often comes from 20% of efforts.
Why it matters: Helps focus limited resources on highest-impact areas.
Example: 20% of customers may generate 80% of profits – so you design strategy around retaining them.
