Adjudication Rules
Adjudication Rules#
Individual Participant Decision Model (V7.5)#
Each round, each participant makes individual decisions for their assigned industries (1 or more industries per participant; recommend 2 max). Decisions are refined in cluster huddles, locked at submission, then evaluated through facilitator scoring + peer ranking.
Scoring Logic:
- Explicit Industry Decisions: Scored on the two-layer system below (facilitator + peer)
- Industries Without Explicit Actions: Receive pre-defined base case fallback scores (deterministic, small fixed deltas) from Base Case Fallback Bank
Each industry decision is scored independently in its own context. The 11 industries are: Retail, CPG, Healthcare Provider, Healthcare Payer, Finance, Consulting, Law, Manufacturing, Logistics, Big Tech, B2B/B2C SaaS.
Two-Layer Scoring Framework#
Layer 1 — Facilitator Bands (Strategic Fit + Execution Risk)#
| Dimension | Definition | Range |
|---|---|---|
| Strategic Fit | Does the decision align with industry fundamentals, competitive positioning, and the macro scenario? Is it well-fit to the chosen Strategic Archetype? | -2 / 0 / +2 (±3 on red-flag) |
| Execution Risk | Can the organization execute this decision within the timeframe? Are there organizational, technical, or capital constraints? | -2 / 0 / +2 (±3 on red-flag) |
Facilitator subtotal: -4 to +4 (or ±6 with red-flag exceptions)
Tail Risk dimension removed in V7.5. Catastrophic-risk concerns are now handled through (a) red-flag triggers that unlock ±3 on Strategic Fit or Execution Risk, and (b) peer ranking, which surfaces backfire risk through "Most likely to succeed" and aggressiveness commentary.
Layer 2 — Peer Ranking#
After all decisions are read aloud, peers rank decisions on three axes:
| Axis | Mechanism | Score impact |
|---|---|---|
| Most likely to succeed | Private rank, aggregated | Top: +1, Bottom: -1, Middle: 0 |
| Greatest impact | Private rank, aggregated | Top: +1, Bottom: -1, Middle: 0 |
| Most aggressive | Public poll | Read-only — drives discussion |
Peer subtotal: -2 to +2
Round Total#
Strategic Fit (±2) + Execution Risk (±2) + Peer Success (±1) + Peer Impact (±1) = -6 to +6
Strategic Archetype (Required on Worksheet)#
Every decision must commit to one of these archetypes. Selection feeds Strategic Fit scoring.
| Archetype | Description |
|---|---|
| Labor Reshape | Workforce, talent, augmentation, headcount restructuring |
| Process Reinvention | Workflows, operational systems, end-to-end redesign |
| Customer/Product Bet | New products, propositions, channels, markets |
| Defensive Hardening | Compliance, security, capital discipline, risk reduction |
| Strategic Swing | M&A, partnership, platform play, big bet |
Scoring implication: A well-chosen archetype that aligns with the industry's competitive position is a strong signal for Strategic Fit. A mismatched archetype (e.g., Defensive Hardening when the industry is in Surge condition with clear growth path) drags Strategic Fit toward 0 or -2.
Scoring Guidance by Dimension#
Strategic Fit (-2 / 0 / +2; ±3 red-flag)#
| Score | Interpretation | Example |
|---|---|---|
| +2 | Decision directly captures the core competitive opportunity or mitigates the core threat. Archetype well-chosen. | Retail picks Process Reinvention to deploy AI demand forecasting when competitors are doing the same; Consulting picks Customer/Product Bet to build vertical AI expertise when clients demand it. |
| 0 | Decision is reasonable; archetype defensible; not bold or game-changing. | CPG picks Defensive Hardening for AI content governance; Manufacturing picks Process Reinvention for incremental predictive maintenance. |
| -2 | Decision is misaligned; archetype mismatched with scenario or industry position. | Big Tech picks Defensive Hardening when copilot adoption wave is accelerating and competitors are moving; Healthcare Provider picks Strategic Swing without regulatory pathway. |
Execution Risk (-2 / 0 / +2; ±3 red-flag)#
Execution Risk is driven primarily by the band combination on the worksheet (Spend, Time, Complexity, Dependency, Scale).
| Score | Interpretation | Band Combination Example |
|---|---|---|
| +2 | Straightforward; minimal organizational change; available capital and talent. | Absorbable + 0–3mo + Low + Internal + Pilot |
| 0 | Feasible but requires some organizational change and talent investment. | Material + 3–12mo + Medium + Internal + Regional |
| -2 | Material execution challenges; significant change management, talent gaps, or capex strain. | Material/Transformational + 1–2yr + High + Vendor + National |
| -3 (exception) | Extremely difficult; severe constraints likely cause failure. | Transformational/Existential + 2+yr + Very High + Ecosystem + Global |
Band-to-Score Translation Reference#
| 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: Each band downgrade (Material → Transformational; 0–3mo → 1–2yr; Low → High; Internal → Ecosystem; Pilot → Global) shifts Execution Risk down ~0.5–1.0.
Red-Flag Triggers (Unlock ±3)#
Red-flag triggers fire on band combinations or strategic archetype mismatches. When fired, ±3 scoring is unlocked on Strategic Fit or Execution Risk.
| Category | Trigger | Action |
|---|---|---|
| Timeline Misalignment | Global/National + 0–3mo + no pilot | Offer narrower scope or longer timeline |
| Regulator-dependent deployment + <12mo timeline | Propose pre-submission/pilot rather than full approval | |
| Pilot → enterprise jump + <6mo with no proven track record | Demand pilot phase | |
| Overcommitted Complexity | Transformational + Very High + Ecosystem + <12mo | Challenge scope; propose pilot |
| Unhedged Catastrophe Risk | Autonomous + National/Global + no rollback plan | Refuse to score until hedged |
| Healthcare AI + High/Very High complexity + no FDA pathway | Push back hard | |
| Law + AI work product + no attorney review + no bar compliance | Refuse to score until hedged | |
| Finance + AI underwriting + no bias/fair lending plan | Push back hard | |
| Consulting + AI advisory + no client confidentiality plan | Push back hard | |
| >30% headcount cut + no severance/transition plan | Refuse to score until addressed | |
| Existential Bet | Existential spend + 2+yr + Very High + Ecosystem | Reframe as narrower scope OR accept -3 |
| Archetype Mismatch | Industry in Crisis condition picks pure-growth archetype (Customer/Product Bet, Strategic Swing) without addressing constraints | Auto -2 Strategic Fit per Industry Health rules |
| Implausible Synergies (M&A only) | Deal size + synergy targets >100% of acquisition cost | Challenge synergy claims |
When fired: Stop. Ask participant to reframe (narrower scope / longer timeline / lower spend / add hedges). If reframed credibly → may unlock +3. If not → -2 to -3 on the relevant dimension.
Decision Specificity Checklist#
Before scoring, verify the participant has specified:
| Item | Example |
|---|---|
| Industry | Retail / CPG / Healthcare Provider / etc. |
| Strategic Archetype | Labor Reshape / Process Reinvention / Customer/Product Bet / Defensive Hardening / Strategic Swing — must match decision content |
| WHO | Team owner; sponsor |
| WHAT | Specific capability (e.g., "Contract review copilots," not "AI delivery") |
| WHERE | Scope (500 stores; 8 plants; 3 practice groups) |
| WHEN | Realistic timeline for the band selected |
| HOW | Talent plan; integration plan; rollback plan |
| BANDS | All 5 bands clear (Spend, Time, Complexity, Dependency, Scale) |
Scoring rule: If >2 items are missing or archetype is mismatched → ask for clarification before scoring. Do NOT score vague decisions; auto-fallback applies if participant cannot specify.
Note: Quantify only when the move is M&A, major capex, or regulatory/legal commitment. Otherwise, bands + justification suffice. No dollar figures expected on participant worksheets.
Facilitation Language#
Challenging a Vague Decision#
"I want to score this Retail decision, but I need specificity. You've checked Process Reinvention as your archetype, but the decision statement says 'deploy AI across stores and online.' I need to know:
- Where are you starting? Which stores or e-commerce functions?
- Your spend band says Material — can you describe what 'material' means for Retail (rough magnitude, not dollars)?
- How will you staff it? Internal team or vendor?
- What's the rollback plan?
Once you answer those, I can score your Retail decision. Note: peer ranking happens after all decisions are read aloud — every decision gets ranked on Success, Impact, and Aggressiveness."
Challenging a Red-Flag#
"I appreciate the ambition. Let me walk you through:
- Your bands: Transformational + Very High complexity + 0–3mo timeline + Ecosystem. That's a red-flag combination.
- Realistically, this either needs a longer timeline (1–2yr) OR a narrower scope (pilot first).
Here's what I can score: A pilot version with realistic timeline. That gives Strategic Fit +1, Execution Risk 0. Peer ranking will determine the rest.
Or, if you accept the bands as written, this scores Execution Risk -3 because the band combination is implausible.
Which direction?"
Accepting a Strong Decision#
"OK, I have all the specificity I need for your Retail decision.
- Strategic Fit: +2 — Process Reinvention archetype is well-chosen; AI demand forecasting addresses your core margin-defense opportunity vs. Amazon.
- Execution Risk: +1 — Bands check out: Material + 3–12mo + Medium + Vendor + Regional. Proven tech, vendor partnership, phased rollout.
- Peer ranking: pending — we'll see where this lands on Success, Impact, and Aggressiveness after all decisions are read."
Outcome Narration (Start of R2, R3, R4)#
After scoring is finalized at the end of each round, the facilitator prepares a brief outcome narration to deliver at the start of the next round. This is the engagement layer that connects decisions to consequences.
Outcome Narration Template#
"[Industry]: your [archetype] decision in R[n-1] [worked / partially worked / backfired]. [Specific consequence — margin held / brand backlash / regulatory action / etc.]. Going into this round, you are in [Surge / Tailwind / Steady / Headwind / Crisis].
[For Headwind: One constraint imposed: [Constraint from menu].] [For Crisis: Two constraints imposed: [Constraint 1] and [Constraint 2]. Pure-growth decisions will score auto -2 Strategic Fit.] [For Surge: You may attempt one Transformational-band decision without auto red-flag challenge.]"
Examples#
- "Retail: your Process Reinvention bet on demand forecasting paid off. Margins held, brand intact. Wall Street notices. Going into R2, you are in Tailwind."
- "Healthcare Provider: your aggressive diagnostic AI rollout outran the FDA pathway. Bar association is asking questions; one early adverse event is in the press. You are in Headwind. One constraint imposed: Reputational Pressure. You must address this before submitting your R2 decision."
- "Big Tech: your Customer/Product Bet on enterprise AI services landed strongly. Cloud revenue accelerated. You are in Surge. You may attempt one Transformational-band decision this round without an auto red-flag challenge."
Time budget: ~30–45 sec per industry. Total ~4–5 min for all industries.
Industry Health Signals (Cumulative)#
After scoring all explicit decisions and applying base case fallbacks each round:
- Update cumulative aggregate score per industry (running total across all rounds)
- Look up Industry Condition from Industry Health Signal Tables
- Announce conditions at start of next round (folded into Outcome Narration)
- Apply Headwind/Crisis constraints before participants submit next round's decisions
Base Case Fallback Scoring#
After scoring all explicit decisions, apply base case fallbacks to industries that did not receive an explicit action:
- Identify industries without explicit actions
- Reference Base Case Fallback Bank
- Apply pre-defined fallback score (deterministic; ±1 per dimension, plausible defensive move)
- Announce: "[Industry] falls back to [score] — [brief rationale]."
Fallback scoring is deterministic. Do not negotiate.
Scoring Reference Table#
| Round Total | Interpretation | Action |
|---|---|---|
| +5 to +6 | Strong decision (70%+ success expectation) | Accept; reinforce in outcome narration |
| +1 to +4 | Acceptable (50–70% success) | Accept; monitor |
| -2 to 0 | Weak | Outcome narration should reflect mixed/marginal result |
| <-2 | Poor; red-flag fired | Outcome narration should reflect material setback |
Summary Checklist (Per Explicit Decision)#
- Industry identified
- Strategic Archetype selected (1 of 5) and matches decision content
- All 5 bands clear (Spend, Time, Complexity, Dependency, Scale)
- WHO/WHAT/WHERE/WHEN/HOW specified
- No red-flag combination (or challenged + reframed)
- No dollar figures expected — bands + justification suffice
- Score Strategic Fit: {-2, 0, +2} (or ±3 if red-flag)
- Score Execution Risk: {-2, 0, +2} (or ±3 if red-flag) — use band translation table
- Wait for peer ranking to apply Success ±1 + Impact ±1
- Aggressiveness ranking is read-only — note for discussion only
- Sum total (range: -6 to +6)
- Post score and brief rationale
- After round: apply base case fallbacks; update cumulative; prepare outcome narration for next round