Post by Principled Selling®

Most PE performance last cycle wasn't built. It was borrowed. From future customers. From future capability. From the next owner. The problem is not incompetence. The problem is that borrowed and earned performance look identical on the day you measure them. They stop looking identical later. I mapped the mechanism - and built a diagnostic framework for catching it before the bill arrives. The Architecture of Earned Performance. Full piece below. If you run a portfolio, save this before your next board meeting.