Policy Iteration

CORE DEFINITION

Strategy iteration treats a strategy as a continuously revised hypothesis rather than a fixed plan. Its core proposition is that an initial strategy is necessarily imperfect because it is formed under incomplete information, so the decisive capability is a reliable loop of executing, measuring, and adjusting rather than the brilliance of the first plan. The key qualification is direction: iteration improves a strategy only when each cycle is measured against a stable objective, otherwise repeated adjustment becomes undirected churn. The idea connects to build-measure-learn practice in lean startup work and to the observe-orient-decide-act loop.