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Executive Intelligence · Advanced Executive Intelligence

Strategic Early Warning System

User-defined, documented leading indicators with thresholds, alerting from verified sources and stating staleness.

Demonstration: Pinecrest Foods plc (fictional) · Food manufacturing. Fictional data and a scripted answer.

The situation

Organisation
Pinecrest Foods plc (fictional)
Who is asking
Chief strategy officer
Industry
Food manufacturing
What happened
The board wants warnings of trouble early enough to act, rather than reports of trouble after it has arrived.

The question asked

Given the current indicators, which strategic warnings are triggered?

What it reads, and who can see the result

  • Leading indicators feedCommercial, cost and people indicators with agreed thresholds.
Reads
The indicator values and the thresholds the board agreed.
Does not read
The detailed data behind the indicators.
Permission
Strategy office access.
Who sees it
The chief strategy officer and the board.

Try it

Answer the questions about the organisation. Each rule becomes applicable, not applicable, or undetermined until the questions it depends on are answered: nothing is assumed.

What the indicators show

Has our win rate on new business fallen by more than five points over two quarters?

Has the largest customer's order volume fallen for three months running?

Has the cost of our main raw material risen by more than 10% in a quarter?

Has voluntary staff turnover exceeded 20% over the last twelve months?

WarningWhereStatusWhat to do and who
Commercial: pipeline quality is deteriorating
Board early-warning rule 1
SalesUndeterminedNeeds: Has our win rate on new business fallen by more than five points over two quartersNone needed
Concentration: the largest customer is pulling back
Board early-warning rule 2
CommercialUndeterminedNeeds: Has the largest customer's order volume fallen for three months runningNone needed
Margin squeeze: input costs are outrunning prices
Board early-warning rule 3
FinanceUndeterminedNeeds: Has the cost of our main raw material risen by more than 10% in a quarterNone needed
Combined: weaker demand while costs rise
Board early-warning rule 4
GroupUndeterminedNeeds: Has our win rate on new business fallen by more than five points over two quarters; Has the cost of our main raw material risen by more than 10% in a quarterNone needed
Capability: people are leaving faster than we can replace them
Board early-warning rule 5
PeopleUndeterminedNeeds: Has voluntary staff turnover exceeded 20% over the last twelve monthsNone needed
Triggered
0
Not triggered
0
Undetermined
5
Answered
0 of 4

The answer

Simulated answer. Written for this fictional case, not produced by a live model. Only the figures in it are computed, from what you decided above.

0 warnings are triggered, 0 are not, and 5 cannot be called yet.

Each warning is a rule the board agreed in advance, tested against what the indicators show [S1][S2]. Where an indicator has not been answered the warning is undetermined and says which one it needs; a quiet indicator is not treated as a clear one.

A combined warning fires only when both of its conditions hold, which is why it is worth having: two moderate signals together can matter more than either alone. For every warning triggered the register names the action and the owner: 0 actions across 0 owners.

Relies on: S1 · Leading indicators, Q3S2 · Early warning rules agreed by the board

Review and approval

The chief strategy officer decides. Approving sends the triggered warnings to their owners with the actions agreed in advance. It does not change any plan.

Not ready to approve. 5 obligations are undetermined until the questions they depend on are answered. Answer them first; nothing is assumed.

In the product this is a different person with the right permission. Here you play that role to see the rule.

What it produces

registerDraft, not approved

Warnings issued

  • 0 warnings triggered, 0 actions, 0 owners.
  • 0 not triggered.

Limits of this example

  • A warning is only as good as its threshold, which the board set.
  • A threshold crossed early may be a false alarm; that is the price of early warning.
  • This is a scripted demonstration on fictional data. No model was called and no real organisation, person or result is shown.