The glossary
The book uses Acquired Alpha as the ontology defines it. The other terms are this book’s own.
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Acquired Alpha. An advantage a buyer gains by buying, adopting, or hiring what another party has built, strong enough to change a real decision. It counts only when the seller’s evidence for it cost the seller something real (money, time, access, data, reputation, or a changed decision) and the buyer can check that evidence without relying on the seller’s word. It means buying products, services, and capabilities, not buying a company.
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Baseline. What the reasonable alternative produced, measured before a trial.
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Board Questions. Eight questions a board or executive committee asks before approving a consequential purchase.
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Claim Card. One card per claim: the claim, the decision it would change, the alternative, the evidence, its rung, its cost to the seller, how to check it, and what would show it false.
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Consequence Bearer. The person or group other than the buyer who bears the cost of a wrong decision.
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Cost-to-Seller Ladder. Seven rungs of evidence by what it cost the seller and how the buyer checks it.
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Costly Question. A question that fluent writing cannot answer, because answering needs access to the seller’s records, people, or systems, or work on the buyer’s own material.
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Eight Look-Alikes. Demo, badge, placement, chosen-reference, self-run benchmark, free-pilot, roadmap, and fluent-proposal alpha.
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Evidence drift. A claim that was true at signing and is no longer.
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Exit Kit. The terms and materials that let a buyer leave.
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Exit Rehearsal. A tested walk through the exit that measures the switching time.
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Fail Condition. An acceptance criterion with a number, a baseline, a date, and a named scorer.
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Failable Pilot. A trial on the buyer’s terms with six parts.
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False alpha. A claimed advantage that rests only on evidence that cost the seller nothing or that the buyer cannot check. The phrase says nothing about the seller’s honesty.
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Proof Plan. One page per claim that matters.
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Purchase Review. A scheduled comparison of what the purchase has produced with each Claim Card, at 30, 90, and 365 days and at renewal.
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Seven Kinds of Claim. Capability, outcome, safety and compliance, cost, durability, fit, and team. Each has a minimum rung and a usual look-alike.
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Signing requirements. Seven things required before signing: a Claim Card for every claim that matters, each claim at its required rung, a Proof Plan result or a plan, acceptance criteria and a Stake in the contract, an Exit Kit tested on paper, a named owner for the purchase and for the Sustainment Tail, and a signature from someone who speaks for the Consequence Bearer.
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Stake. Money, credit, or a right the seller gives up if the claim is false.
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Sustainment Tail. The ongoing work that begins after delivery.
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Switching time. The time from the decision to leave to a working replacement.
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Three Tests. The decision test, the cost test, and the check test.
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Three-Way Sort. Build, buy, or generate once, decided before shopping.