the idea he is really talking about is John Boyd's OODA cycle.
It's a conceptual idea for decision making - a fast iterative feedback
and decision cycle.
EDIT: Oh. I just got to the part where he simply says "This is based on the OODA loop by a fighter pilot named John Boyd..."
This is an /excellent/ book on the subject.
John Boyd was a US air force colonel who essentially reinvented
modern warfare. Instead of attacks based on massive force,
his philosophy was based on controlling the flow and tempo of
battle. Controlling your adversaries ability to understand
and react to the ever changing world - eventually folding
himself inside out as the basketball coach did.
Similarly the wargame scenario is classic boyd too. Change
the game, keep adversary off balance, you win.
Everyone should absolutely read "A discourse on winning and
losing.". Everything the current dotcom wunderkids/bloggers are saying
on blogs is covered in more detail and more clearly in boyd's
Probably the best book on the subject currently. Not an easy