• Framework
  • Economics
  • 6 min read

The Two-Cycle Go/No-Go

Outcomes, cost, time, record, incidents. Read at the second review, from the record, with the first cycle labelled as what it was.

Author
ftes.ai Editorial
ftes.ai Team

The short answer

The Two-Cycle Go/No-Go is a five-criterion frame for judging a Digital FTE pilot at the second monthly review: outcomes against targets with evidence, cost per outcome against the recorded baseline, manager time against the baseline sheet, a routine class promoted under the Promotion Standard, and no unresolved incidents. Three verdicts follow: continue and add, continue and fix, or stop.

Put a Digital FTE on thisEvery role proposes with evidence and reports to you.

Key takeaways

  • The first cycle includes setup and calibration and is labelled first-cycle; the second review is the judgement.
  • Each criterion is answered from something in the workspace or the baseline sheet, never from a feeling.
  • Continue-and-fix is the most common honest verdict; it names what to change.
  • Stop is a legitimate verdict, and the exit path is designed for it.
  • Write the verdict and its evidence in the review note before telling anyone.

What decision does the Two-Cycle Go/No-Go frame?

Whether a Digital FTE pilot continues, and in what form. Pilots are usually judged too early, on the first cycle, which contains the setup week, the close-reading weeks, and the calibration, and are judged on impressions rather than the record. The frame fixes the timing at the second monthly review and fixes the evidence at five things a manager can open. The verdict is then defensible to a CFO, a board, or a sceptical team, because every line of it traces to the workspace or to the baseline sheet the team recorded before the pilot began.

The frame applies to any role, any vertical, and any size of pilot, including one role in one function.

What are the five criteria?

Outcomes: did the role meet its targets in the Targets tab over the second cycle, with the evidence attached, and were the targets the ones agreed at the first review? Cost: what is cost per outcome for the second cycle, from the role's usage at the plan rate divided by the outcomes, against the baseline cost of the same outcome recorded before the pilot, with human hours added? Time: did the manager's approval and review minutes in the second cycle fall against the first, and against the baseline hours the function consumed? Record: did at least one routine class meet the Promotion Standard, or is there a specific, named reason it did not? Incidents: were there any escalations that failed the summary standard, any send-backs for a substantive reason on a promoted class, or any incident, and is each resolved with a remit or memory change recorded?

Each criterion is a yes, a no, or a no with a named fix.

  • Outcomes: targets met with evidence
  • Cost: per outcome against the baseline, hours included
  • Time: manager minutes falling
  • Record: a class promoted, or a named reason
  • Incidents: none open, or each resolved with a recorded change
Measuresample the prompt setProposeworth-it verdictDraftpasses the fact gateApprovea named personPublishyour routeand againweekly, dated, honestWHAT IS UNMEASURED IS MARKED UNMEASURED
Figure 1The loop the frame reads at the second review: targets with evidence, usage and cost per outcome, manager minutes, the approval record, and incidents with their recorded fixes, each feeding the next cycle.

How does the worked example read, with the inputs left blank?

Role: [role], hired [date], reviewed [date] and [date]. Outcomes: targets agreed at the first review were [target] and [target]; in the second cycle the record shows [result] and [result], with evidence in the Targets tab. Cost: usage in the second cycle was [tokens] at [rate], outcomes were [count], so cost per outcome was [figure]; baseline cost per outcome from the sheet was [hours] at [rate] plus [external], so [figure]; manager hours in the cycle were [hours] at [rate], added. Time: approval minutes per day fell from [minutes] in cycle one to [minutes] in cycle two; the function's baseline was [hours] per week. Record: [class] was promoted on [date] under the Promotion Standard; or, [class] was not promoted because [reason]. Incidents: [count], each resolved by [change] recorded on [date]. Verdict: [continue and add, continue and fix, stop], because [criteria].

If the first cycle's numbers are used anywhere, they are labelled first-cycle and are not the comparison.

What are the three verdicts?

Continue and add: all five criteria are yes; the role continues, its block is sized from usage, and the Second-Role Test is run for the next function. Continue and fix: outcomes or cost are close but one criterion is a no with a named fix, a remit too wide, a memory gap, an unsettled approver, a target set wrong; the role continues for a third cycle with the fix recorded, and the frame is re-run. Stop: outcomes or cost are clearly short with no named fix, or an incident is unresolved, or the function turned out to be judgement work; the role is paused, the audit trail and memory are exported, the credentials are revoked, and the note records why, so the next attempt, if any, starts from the record.

Continue-and-fix is the most common honest verdict, and it is not a failure; it is the frame naming the change.

Why the second review and not the first?

Because the first cycle is the calibration period and measures the setup, not the function. Its approval rate is low because every proposal was read closely; its cost per outcome is high because setup hours are in it and no class had earned autonomy; its send-backs are about facts the memory lacked. Judging on it produces a no-go for roles that would have worked and, occasionally, a go for roles that were only impressive. The second cycle runs with a tuned remit, a corrected memory, and a manager who has the habit, and its numbers are the ones a CFO can sign.

The myth piece on working perfectly from day one describes what the first cycle looks like and why it is misread.

How is the frame applied?

Before the pilot: record the baseline with the template, and agree with the sponsor that the verdict comes at the second review, in writing. At the first review: set targets, tune the remit, promote nothing or one class, and label the cycle's numbers first-cycle in the note. At the second review: fill the five criteria from the Targets, Performance, and Approvals tabs and the baseline sheet, write the verdict with its evidence in the review note, and only then tell the sponsor. For continue-and-fix, name the fix and the date of the third review. For stop, run the offboarding checklist the same week.

The whitepaper on the economics of digital labor gives the cost arithmetic in full, and the monthly review note template gives the fields.

Frequently asked questions

What is the Two-Cycle Go/No-Go?

Five criteria read at the second monthly review: outcomes, cost per outcome against the baseline, manager time, a promoted class, and no open incidents. Three verdicts: continue and add, continue and fix, or stop.

Why not judge after the first month?

The first cycle measures setup and calibration. Its rate, cost, and send-backs are not representative, and judging on them produces wrong verdicts both ways.

Is stop a real option?

Yes. The role is paused, the trail and memory exported, credentials revoked, and the reason recorded so any later attempt starts from the record.

What is the most common verdict?

Continue and fix: outcomes or cost are close, one criterion is a no with a named fix, and the frame is re-run after a third cycle.

  • Framework
  • Pilot
  • Go/No-Go
  • Monthly review
  • Economics
Further reading

Keep going.

Related guides on hiring and managing Digital FTEs.

Playbook · Operations · 5 min

Playbook: Running the First Monthly Review in 30 Minutes

A minute-by-minute plan for the first review of a Digital FTE: read its own report, check targets against evidence, read the send-back reasons grouped, look at cost per outcome, decide three things, write five lines.

Read

Checklist · Operations · 5 min

Template: The Five-Line Monthly Review Note

The note that turns a thirty-minute review into a record: date and reviewer, the three decisions with their evidence, and what was found that is not the FTE's to fix. Copyable, with the fields and the reasons each exists.

Read

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