Part II · Chapter 2 · The Boundary · lesson 12
The boundary you will regret in eleven months
13 min
Builds on The two hundred questions, and the three they are really asking
Part II · Chapter 2 · The Boundary · lesson 12
13 min
Builds on The two hundred questions, and the three they are really asking
The boundary that gets you through the first audit and the boundary that gets you through the next four buyers are not the same sentence, and you have to pick one of them eleven months before you find out which.
Four companies, all of them real shapes, all four boundaries defensible. Here is the renewal conversation each one produced a year later.
Narrowest. Production platform, production access, nothing else. Eleven months on, a buyer in financial services asks about the support desk — fifteen people who read customer records all day, outside the line. The answer is that the support desk was not examined. The deal takes another quarter and a separate questionnaire.
Plus the support function. The expensive notch, taken deliberately. Eleven months on, the same buyer is satisfied and a different one asks about the second region, which opened in month seven and is not in the sentence. The sentence was written before the region existed, and nobody updated it.
Everything, including both regions and every internal tool. Eleven months on, no buyer has a question. The register has forty-one controls, nine of them performed by one person, and three stopped happening in the spring. The first anybody hears of it is the second-year fieldwork.
Narrow, with three named exclusions and a stated date for revisiting them. Eleven months on, two of the three exclusions are still out and the date has passed. A buyer who kept the first document asks about the date. The controls are all running.
Predict
Three failure modes, and they are not the same shape.
Too narrow fails in sales, one buyer at a time, a quarter at a time. The cost is specific, visible and arrives late. It is also the only one of the three you can fix by widening next period.
Too wide fails in year two, quietly, in the controls nobody would notice stopping. The cost is invisible until somebody samples, and widening was the easy part — narrowing afterwards means explaining to buyers why your coverage shrank.
Stale fails in both directions at once, and it is the most common. The estate moved, the sentence did not, and now the document describes a company that existed last March.
Nothing distinguishes these at the moment of drawing the line. What distinguishes them is which question you asked: what passes, what sells, or what you can still be holding in three years.
What would you do
Your first report lands next month. The boundary is the narrow one: production platform, 24 people with production access, three named exclusions. The controls are all running and the register has eleven entries, which is a register your company can actually sustain.
Sales says the next two buyers in the pipeline are a healthcare integrator and a European retailer. Both are larger than anyone you have sold to. Neither has sent a questionnaire yet. The support desk — fifteen people, read access to customer records — is one of the three exclusions.
The condition under which all of this stops holding is worth naming, because it is the common one.
You drew the boundary for the buyers you had. If the next buyer is in a different sector, their questions come from their own obligations rather than from diligence, and those obligations were written by somebody who has never heard of you. A healthcare integrator and a European retailer do not ask the same questions, and neither of them asks the questions your current customers ask.
That is not a drafting failure, and no amount of care at the moment of drawing the line prevents it. What helps is knowing which of your three exclusions is the one a new sector is most likely to collide with, and having a sentence ready for it — which is a different exercise from predicting the sector.
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