The Friction Index™

The Friction Index™

Every portfolio company has governance conditions that financial reporting will never surface. These are the conditions that determine whether the business can actually execute what the board pack promises. The Friction Index™ measures six of them, independently of management.

Every portfolio company has governance conditions that financial reporting will never surface. These are the conditions that determine whether the business can actually execute what the board pack promises. The Friction Index™ measures six of them, independently of management.

Governance scorecard

ILLUSTRATIVE OUTPUT

COMPOSITE SCORE

62 / 100

62 / 100

Decision Velocity · 71

Information Fidelity · 48

Talent Resilience · 55

Cross-Functional Alignment · 43

Leadership Consensus · 67

Adaptive Capacity · 38

WHAT EACH DIMENSION MEASURES

Decision Velocity

When every major decision waits for one person, the company stalls each time that person is unavailable. The result shows exactly where the bottleneck sits and how dependent the business is on any single individual.

Information Fidelity

Board packs tell a story. The question is whether that story matches what is actually happening. The result shows the distance between what management reports and what the evidence supports.

Talent Resilience

When a key person leaves and critical knowledge walks out the door, it is usually too late to recover. The result shows which departures would damage the business and which capabilities have been protected.

Cross-Functional Alignment

When departments operate as separate islands, work falls through the gaps between them. The result shows whether the organisation operates as one business or as several disconnected units.

Leadership Consensus

Leadership teams often appear aligned in meetings but operate with different priorities. The result shows the gap between stated alignment and actual behaviour.

Adaptive Capacity

Every business faces disruption. The result shows how much stability is built into the system and how much is borrowed from individuals.

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