Conceptual vocabulary

The vocabulary behind the calls.

The recurring concepts for thinking clearly about AI-era decisions: proof gap, leverage debt, accountability floors, and where borrowed competence starts to matter.

Mental models

01

Capability Compression

AI reduces the time, headcount, and specialized skill required to demonstrate a working capability.

Field receipt

One person built the PorcelainSheer catalogue in days — photography, copy, production. A team of three would have taken weeks. The capability compressed.

What did not compress: the judgment about whether it was worth building. When execution becomes cheap, that question gets skipped. Compression removes the friction that used to force it.

Use whenUse it when a workflow suddenly becomes possible for a single operator or tiny team.

PreventsMistaking a lower prototype cost for a lower operating cost.

02

Prototype-Production Gap

The cost of demoing a workflow is collapsing faster than the cost of making it dependable.

Field receipt

In consulting, this gap runs on a reliable cycle. An internal team builds an AI tool. It demonstrates. Then someone asks what it would take to scale it, integrate it, or pass a security review. The answer is another team and a rewrite.

The demo was never a product. Production is a product problem — it requires product thinking before the first line is written, not after the demo lands.

Use whenUse it before turning a promising agent, script, or workflow into a real operating dependency.

PreventsConfusing a magical demo with a system someone can trust on a bad day.

03

Minimum Efficient Team

AI changes the smallest team capable of operating a business capability.

Field receipt

The minimum efficient team for a catalogue, a site, or a working software tool is now one person. This is visible in both directions.

On the personal side, the leverage is real. On the consulting side, the same one-person team is arriving as an independent contractor — and becoming competition for firms whose pricing was calibrated to a team that is becoming optional.

Use whenUse it when deciding whether a capability needs a department, a squad, a contractor, or one augmented owner.

PreventsPreserving legacy team shapes after the work itself has changed.

04

Coordination Tax

Every additional agent, tool, handoff, or automation creates specification, validation, and integration load.

Field receipt

When you remove a layer of people from a working arrangement, you discover how much faster the remaining work moves. The coordination tax was invisible because it looked like how work gets done.

It does not disappear when AI takes over execution. It compresses into artefacts — task packets, prompts, result files. The only tax worth paying is the one that moves a judgment forward, not the one that synchronises context.

Use whenUse it when adding more agents appears to increase velocity but actually increases supervision burden.

PreventsBelieving parallelism is free.

05

Accountability Floor

Some decisions cannot be delegated away because a human or institution must remain answerable.

Field receipt

When AI drafts the operating model for a large utility client, the consultant has no mechanism to audit the reasoning chain. The output looks correct. The logic is coherent. But coherent and auditable are not the same property.

The client does not hold the model accountable. They hold the practitioner. That condition does not change as AI capability increases. It becomes more consequential.

Use whenUse it when automating work with legal, financial, safety, reputational, or strategic consequences.

PreventsTreating automation as accountability laundering.

06

Owned Versus Rented Leverage

The question is not self-hosted versus SaaS. It is which capabilities must become strategic assets.

Field receipt

Large organisations are building AI workflows entirely on top of a single provider's stack. No internal capability. No IP. The dependency shifted from cloud hyperscaler to AI provider — same structural problem, new landlord.

The belief that keeps this in place: internal AI capability belongs to product companies. It does not. The organisations that own the judgment layer will not be exposed when the terms change. The ones who rented it will.

Use whenUse it when deciding whether to build, buy, subscribe, outsource, or own a workflow.

PreventsOverbuilding commodities while renting the capabilities that create durable advantage.

07

Leverage Debt

Automation can create short-term output while accumulating hidden maintenance, security, and judgment costs.

Field receipt

A consulting team that has spent twelve months producing AI-assisted deliverables is faster. They have become better at prompting. The question worth asking: have they become better at the underlying work — the diagnosis, the framing, the judgment?

If the answer is no, the leverage was borrowed. The debt is the gap between apparent capability and actual capability. It comes due when the tool changes.

Use whenUse it when a tool saves time today but quietly increases fragility tomorrow.

PreventsCounting output without counting obligations.

08

Build-Buy-Automate-Delegate-Own

Every capability needs an explicit operating mode rather than an inherited default.

Field receipt

The default in enterprise and consulting is Buy. COTS products, platform subscriptions, vendor solutions. Rational for commodity inputs. A structural problem when applied to capabilities that determine competitive position.

The signal that the wrong decision was made: a prototype converts to a product, and the conversation immediately turns to the team of three needed to maintain and run it. That is not a product. That is a support contract in human form.

Use whenUse it when prioritising the next move for a product, team, workflow, or personal operating system.

PreventsLetting convenience decide strategy.