Adjudication Rules
Adjudication Rules#
Individual Participant Decision Model (V7.4)#
Critical Change: Each round, each participant makes individual decisions for their assigned industries (1 or more industries per participant; recommend 2). Unlike V6 (team deliberation), V7.4 has individual participants deciding for their industries directly.
Scoring Logic:
- Explicit Industry Decisions (If Submitted): Scored normally using banded framework ({-2, 0, +2} per dimension, +/-3 if red-flag)
- Industries Without Explicit Actions: Receive pre-defined base case fallback scores from fallback bank (small fixed deltas: +/-1 per dimension, deterministic, plausible). Fallbacks are automatic and deterministic.
Each industry decision is scored independently on the same 3 dimensions. There is no "sector-level" decision; all scoring happens at the industry level. The 11 industries are:
- Retail — scored using retail-specific context (omnichannel, demand forecasting, inventory)
- CPG — scored using CPG-specific context (brand management, R&D cycles, DTC)
- Healthcare Provider — scored using provider-specific context (clinical AI, FDA, patient safety)
- Healthcare Payer — scored using payer-specific context (claims automation, fraud detection, MLR)
- Finance — scored using finance-specific context (underwriting, trading, fair lending, fraud)
- Consulting — scored using consulting-specific context (copilot adoption, vertical AI expertise, pricing models, junior talent pipeline)
- Law — scored using law-specific context (billable hour model, bar rule compliance, malpractice liability, associate leverage)
- Manufacturing — scored using manufacturing-specific context (predictive maintenance, OT/IT integration, union relations)
- Logistics — scored using logistics-specific context (route optimization, autonomous vehicles, driver adoption)
- Big Tech — scored using Big Tech-specific context (cloud, ads, devices, enterprise software; excludes AI lab/model development)
- B2B/B2C SaaS — scored using SaaS-specific context (AI feature integration, pricing pressure, startup disruption)
Participants decide individually; facilitators score each industry decision on its own merits, in its own context. Fallback industries do not require participant justification; facilitator applies the pre-defined score from the fallback bank.
Scoring Framework#
Each industry decision is scored on three dimensions:
| Dimension | Definition | Range |
|---|---|---|
| Strategic Fit | Does the decision align with industry fundamentals, competitive positioning, and the macro scenario? | -3 to +3 |
| Execution Risk | Can the organization execute this decision within the timeframe? Are there organizational, technical, or capital constraints? | -3 to +3 |
| Tail Risk | Does this decision expose the organization to downside scenarios (regulatory, competitive, reputational, systemic)? | -3 to +3 |
Total per decision: Sum of three dimensions (range: -6 to +6).
Banded Scoring During Play#
Default scoring bands during live rounds:
| Dimension | Typical Bands |
|---|---|
| Strategic Fit | {-2, 0, +2} |
| Execution Risk | {-2, 0, +2} |
| Tail Risk | {-2, 0, +2} |
Why banded? Prevents false precision. Participants understand three clear buckets per dimension, not nine.
Exception: If a red-flag/plausibility trigger fires (see Section 2), unlock +/-3 scoring.
Scoring Guidance by Dimension#
Strategic Fit (-3 to +3)#
| Score | Interpretation | Example |
|---|---|---|
| +2 | Decision directly captures the core competitive opportunity or mitigates the core threat in this scenario. | Retail deploys AI demand forecasting when competitors doing same; Finance deploys AI underwriting when profitability depends on speed; Consulting builds vertical AI expertise when clients demand it. |
| 0 | Decision is aligned with industry fundamentals; reasonable strategic move but not game-changing. | CPG launches direct-to-consumer AI-driven personalization; Manufacturing invests in predictive maintenance; Law pilots AI-assisted research tools. |
| -2 | Decision is misaligned with scenario; exposes participant to opportunity cost. | Big Tech holds on AI product integration during copilot adoption wave; Healthcare delays diagnostic AI investment during regulatory uncertainty; Law delays all AI adoption waiting for bar rule clarity. |
Execution Risk (-3 to +3)#
Execution Risk maps from banded inputs: Spend/Commitment, Time-to-Impact, Execution Complexity, Dependency, and Scale.
| Score | Interpretation | Band Combination Example |
|---|---|---|
| +2 | Decision is straightforward to execute; minimal organizational change; available capital and talent. | Absorbable spend + 0-3mo + Low complexity + Mostly internal + Pilot -> +2 Execution Risk |
| 0 | Decision is feasible but requires some organizational change and talent. | Material spend + 3-12mo + Medium complexity + Mostly internal + Regional -> 0 Execution Risk |
| -2 | Decision faces material execution challenges; significant change management, talent gaps, or capex. | Material/Transformational spend + 1-2 years + High complexity + Vendor/Partner + National -> -2 Execution Risk |
| -3 (Exception) | Decision is extremely difficult to execute; severe constraint likely failure. | Transformational/Existential spend + 2+ years + Very high complexity + Ecosystem shift required + Global -> -3 Execution Risk |
Examples:
- Deploying proven AI copilots (Absorbable, 0-3mo, Low, Internal, Pilot) = +2
- Enterprise-wide AI deployment with vendor integration (Material, 3-12mo, Medium, Vendor, National) = 0
- Building proprietary AI from scratch (Transformational, 2+ years, Very high, Ecosystem, Global) = -2 to -3
Tail Risk (-3 to +3)#
| Score | Interpretation | Example |
|---|---|---|
| +2 | Decision includes hedges or defensive measures; upside potential with limited downside. | AI trading with circuit breakers; diagnostic system with human review; pilot-phase deployment; Law AI with human attorney review of all output. |
| 0 | Decision is neutral on tail risk; no clear upside or downside hedges. | Phased deployment with standard governance; moderate automation with retention plan. |
| -2 | Decision exposes organization to material tail risk; likely to backfire if scenario changes. | Aggressive headcount cuts without severance; autonomous systems with no rollback; all-in bet on unproven technology; Law firm deploys AI-generated briefs without attorney review (malpractice exposure). |
Band-to-Score Translation Reference#
Use this table to quickly map banded inputs to expected Execution Risk scores:
| Spend | Time | Complexity | Dependency | Scale | Typical Exec Risk |
|---|---|---|---|---|---|
| Absorbable | 0-3mo | Low | Internal | Pilot | +2 |
| Absorbable | 0-3mo | Medium | Internal | Regional | +1 |
| Material | 0-3mo | Low | Internal | Regional | +1 |
| Material | 3-12mo | Medium | Internal | Regional | 0 |
| Material | 3-12mo | High | Vendor | National | -1 |
| Transformational | 3-12mo | Medium | Vendor | National | -1 |
| Transformational | 1-2yr | High | Regulator/Union | National | -2 |
| Transformational | 2+yr | Very High | Ecosystem | Global | -3 |
| Existential | 2+yr | Very High | Ecosystem | Global | -3 |
Quick rule: Absorbable + 0-3mo + Low = +2. Each band downgrade (Material, Transformational, Existential) or timeline extension (3-12mo, 1-2yr, 2+yr) or complexity increase (Medium, High, Very High) or dependency widening (Vendor, Regulator, Ecosystem) shifts score down by roughly 0.5-1.0 per dimension.
Red-Flag Triggers (Band Combinations)#
Red-flag triggers now reference band combinations instead of granular details:
| Category | Red-Flag Bands | Example |
|---|---|---|
| Timeline Misalignment | Global scale + 0-3mo + Absorbable/Material spend | Launching globally in 3 months without pilot |
| Overcommitted Complexity | Transformational spend + Very High complexity + Ecosystem shift + 0-12mo | Building proprietary AI with ecosystem shift in <1 year |
| Regulatory Constraint | Any deployment requiring Regulator/Union buy-in without pre-defined pathway | Healthcare AI without FDA engagement plan; Law AI without bar rule compliance assessment |
| Unhedged Scale | Global/National scale + No pilot phase + High/Very High complexity | Full enterprise deployment of unproven tech without pilot |
| Existential Bet | Existential spend + 2+ years + Very High complexity + Ecosystem shift | Bet-the-company M&A or full business model pivot |
When a red-flag band combination appears: Challenge the participant. Offer a narrower scope, longer timeline, lower complexity, or lower spend. Unlock +/-3 exception scoring only if participant acknowledges and addresses the constraint.
Decision Specificity Checklist#
Before scoring ANY decision, verify participant specified:
| Item | Example |
|---|---|
| WHO | Which team owner? Committed sponsor? (Not "we'll figure it out later") |
| WHAT | What specific capability/action? (e.g., "GitHub Copilot," not "deploy AI") |
| WHERE | Scope: pilot / function / geography / enterprise? (Not "across the company") |
| WHEN | Timeline realistic for scope? Regulatory approval needed? (Not "as soon as possible") |
| HOW MUCH | Headcount, capex, revenue impact clear? (Not "minimal budget") |
| HOW | Talent plan? Integration detail? Rollback plan? (Not "we'll manage it") |
| RISK | Participant acknowledges execution and tail risk? (Not "this is foolproof") |
Scoring rule: If >2 items are missing -> ask for specificity before scoring.
When to Challenge vs. When to Accept#
Challenge (Ask for Clarification)#
Ask for specificity if proposal is vague on WHO/WHAT/WHERE/WHEN/HOW/HOW MUCH/RISK.
Template: "I appreciate the direction. I need clarity on [specific issue]. Can you walk me through [detail]? That changes the execution risk profile significantly."
Accept (If Specificity Met)#
Once all 7 items are clear, score the decision per framework above.
Red-Flag Triggers (When to Unlock +/-3)#
Red-flag triggers are plausibility gates based on band combinations and strategic archetypes. If a red-flag fires, unlock +/-3 exception scoring (see Plausibility Decision Trees).
Quantitative Requirements (Only Required When...)#
Only quantify when the move is M&A, major capex build, or regulatory/legal commitment. Otherwise, bands + justification is sufficient.
- M&A: Deal size, close timeline, integration plan required
- Major Capex: Capex amount, ROI, payback period required
- Regulatory/Legal Commitment: Regulatory timeline, legal exposure, severance obligations required
- Otherwise: Band classification + concise justification suffices
Red-Flag Categories (Band-Based)#
| Category | Trigger | Example |
|---|---|---|
| Timeline Misalignment | Global/National scale + 0-3mo timeline + Absorbable/Material spend | Launching globally in 3 months without pilot phase |
| Regulator-dependent deployment + <12mo timeline | FDA or OCC approval assumed in under a year | |
| Pilot to enterprise scaling + <6mo without proven track record | Jumping from 50-store pilot to national rollout in 5 months | |
| No Execution Risk Discussion | Missing talent acquisition plan (esp. Execution Complexity = High/Very High) | "We'll hire AI engineers" with no sourcing plan or timeline |
| No integration roadmap (esp. Dependency = Vendor/Regulator/Ecosystem) | Vendor partnership assumed but no contractual or technical plan | |
| Unclear regulatory pathway (esp. regulated industry) | Healthcare or Finance AI deployment with no compliance strategy | |
| No data readiness assessment (esp. AI-heavy system) | ML model proposed without addressing data quality or availability | |
| Industry Constraint Violations | Healthcare Provider AI + High/Very High complexity + no FDA engagement plan | Deploying clinical AI diagnostics without regulatory pathway |
| Finance/Trading AI + High complexity + no circuit breakers/risk controls | AI trading system with no kill switch or position limits | |
| Retail/CPG + Headcount reduction >15% + no labor transition plan | Mass layoffs without severance, retraining, or redeployment | |
| Finance + AI underwriting + no bias auditing framework | Automated lending decisions without fair-lending compliance | |
| Law + AI-generated work product + no bar rule compliance + no attorney review | AI drafts filed with courts without human attorney review | |
| Law + AI-generated briefs without human review + malpractice unaddressed | Client-facing AI legal work with no liability framework | |
| Consulting + AI advisory services + no client confidentiality safeguards | AI tools processing client data without data-handling protocols | |
| Consulting + >40% junior headcount reduction + no talent pipeline plan | Gutting the associate bench with no plan to develop future partners | |
| Unhedged Tail Risk | Autonomous systems + National/Global scale + no rollback plan | Enterprise-wide autonomous process with no manual override |
| Headcount reduction >30% + no severance/retention plan (M&A/major restructure only) | Major restructuring with no workforce transition support | |
| Full deployment + High/Very High complexity + no pilot phase | Skipping test-and-learn on a complex, unproven system | |
| Novel technology in mission-critical domain (Healthcare, Finance, Law) + no human oversight | AI making clinical, financial, or legal decisions without human review | |
| Implausible Synergies (M&A only) | Deal size >$5B + synergy targets >100% of acquisition cost | Claiming $6B in synergies on a $5B acquisition |
| Integration complexity High/Very High + synergy realization <12mo | Expecting full integration benefits within a year of close |
Facilitation Language for Industry-Level Decisions#
When challenging a vague decision, reference the industry explicitly to keep context clear:
Challenging a Vague Decision (Industry-Specific)#
"I want to score this Retail decision, but I need specificity. Right now you've said 'deploy AI across stores and online.' But I need to know:
- Where are you starting? Which 500 stores? All stores? Which e-commerce functions?
- How much are you spending on the Retail initiative? $5M or $50M?
- How will you staff it? Do you have retail tech talent, or do you need to hire?
- What's the rollback plan if customer trust erodes?
Once you answer those, I can score your Retail decision. Note: If you also submit a Law decision, it will be scored separately on Law-specific metrics (billable hour impact, bar compliance, malpractice exposure, etc.)."
Challenging a Red-Flag#
"I appreciate the ambition here. But this proposal triggers a plausibility concern for me. Let me walk you through:
- You're proposing FDA approval in 12 months for a novel diagnostic system.
- FDA approval for novel diagnostics typically takes 18-24 months, even with a complete application.
- In 12 months, you could submit an application or run a pilot with investigational status, but not full deployment.
Here's what I can score: Proposing a pilot with human oversight and FDA submission (not approval). That's Strategic Fit +1 (good direction), Execution Risk -1 (regulatory timeline is long), Tail Risk 0 (human oversight limits downside). Total: 0/6.
Or, if you want higher execution feasibility, propose a different approach. What would you prefer?"
Accepting a Strong Industry Decision#
"Okay, I have all the specificity I need for your Retail decision. Let me score:
- Strategic Fit: +2 -- Direct response to inventory margin loss; aligns with omnichannel strategy.
- Execution Risk: +1 -- Demand forecasting AI is proven; you have experience; 500-store pilot is feasible.
- Tail Risk: +1 -- Phased pilot allows learning; if brand backlash emerges, you can narrow scope.
- Total: +4/6 -- This is a strong Retail decision. Expected probability of success: 70%+. If you also submit a Consulting decision, it will be scored separately."
Scoring Reference Table#
| Total Score | Interpretation | Action |
|---|---|---|
| +5 to +6 | Strong decision; expect 70%+ success probability. | Accept and celebrate. Participant is executing well. |
| +1 to +4 | Acceptable decision; execution risk is real; monitor closely. | Accept; add to watch list; expect 50-70% success probability. |
| -2 to 0 | Weak decision; reframe as narrower scope or defer. | Challenge; ask participant to narrow scope or add hedges. |
| <-2 | Challenge; likely implausible; ask participant to narrow or add hedges. | Reject or reframe significantly. Low probability of success. |
Base Case Fallback Scoring#
After scoring all explicit industry decisions, apply base case fallbacks to any industry that did not receive an explicit action from any participant.
Fallback Scoring Process:
- Identify industries without explicit actions (variable count based on how many industries each participant covers)
- Reference the fallback bank (see Base Case Fallback Bank)
- Apply the pre-defined fallback score for that industry (deterministic, small fixed deltas: +/-1 per dimension, plausible)
- Fallback industries are applied automatically (no participant input required)
- Post fallback score alongside explicit decisions for transparency
Example: Participant covering Retail and CPG submits explicit Retail decision (+2/6). CPG receives no explicit action. Reference fallback bank -> CPG falls back to {0, +1, 0} = +1/6 (defensive but plausible cost-reduction move). Post both scores.
Fallback scoring is deterministic, not participant-controlled. Facilitator applies it directly from the fallback bank.
Industry Health Signals (End of Round)#
- During play: Score explicit decisions only (3 dimensions, sum per decision).
- Apply base case fallbacks after explicit scoring (reference fallback bank).
- End of round: Update cumulative aggregate score for each industry (running total across all rounds). Look up Industry Health condition (Surge/Tailwind/Steady/Headwind/Crisis) from Industry Health Signal Tables.
- Announce conditions at start of next round (~2 min). Apply Headwind/Crisis constraints as applicable.
Summary Checklist (Per Explicit Decision)#
- Industry identified (Retail? CPG? Finance? Healthcare Provider? Consulting? Law? etc.)
- Participant specified all 7 items (WHO/WHAT/WHERE/WHEN/HOW/HOW MUCH/RISK)
- Band mapping clear (Spend/Commitment, Time-to-Impact, Complexity, Dependency, Scale)
- No red-flag band combinations (if yes, unlock +/-3 scoring and reference decision trees)
- Only quantify if M&A, major capex, or regulatory/legal commitment; otherwise bands + justification suffices
- Score Strategic Fit: {-2, 0, +2} (or +/-3 if red-flag)
- Score Execution Risk: {-2, 0, +2} (or +/-3 if red-flag) -- reference band translation table
- Score Tail Risk: {-2, 0, +1} (or +/-3 if red-flag)
- Sum total (range: -6 to +6)
- Post score and brief rationale to participant
- After round: Apply base case fallbacks to industries without explicit actions (reference Base Case Fallback Bank)
- End of round: Update cumulative scores and look up Industry Health conditions (reference Industry Health Signal Tables)