This applies to a lot more than writing a book and is great advice to anyone who is writing documentation for their code/project. I find this technique particularly helpful when writing a "How to get our development env up and running in 3 hours or less" document.
Most of the time I just write it down in a Google doc and share with my team. But lately I've been documenting all steps with Fabric, which has the dual benefit of being very readable ("self-documenting") code as well as a one-command setup script 'fab -h <target>'. And the way I create my Fabric scripts is basically what Zed describes above.