A
Adopted
The state in ROI Capture where an initiative’s expected value has begun to materialize and its realized impact is recorded qualitatively.
Auditor
A governance role with system-wide visibility for compliance and logging, without permissions to edit value models or initiatives.
B
Baseline Lock
Baseline Lock freezes value ranges, feasibility scores, and strategic modeling assumptions before execution begins. It protects decision integrity and enables future variance assessment.
Related:
Execution Readiness, ROI Capture, Variance, Decision Integrity
C
Closed (Capture State)
The final state of ROI Capture, indicating that value capture has been assessed and no further updates will be made.
Contributor
A supporting role allowed to add qualitative input or supporting information, but not to modify core value assumptions.
cSROI (Convertible SROI)
A subtype of SROI representing strategic value that can optionally be converted into monetary terms without changing its classification.
D
Decision
The approval point where prioritized initiatives are moved into execution readiness based on DPI and governance validation.
Decision Flow
The defined sequence from initiative modeling through feasibility, DPI, prioritization, and approval.
Decision Quality KPI
The Decision Quality KPI measures how closely realized outcomes align with the assumptions used to approve investments. It is used for organizational learning and evaluates decision quality across cycles.
Related:
Variance, Enterprise View, Portfolio Quality, Governance Learning
DPI (Decision Priority Index)
DPI is the priority score for initiatives, calculated as ROI Score × Feasibility. It determines relative investment priority within the Strategic ROI Matrix™.
Related:
ROI Score, Feasibility Score, Strategic ROI Matrix™, Funding Bands
Driver
A short causal explanation connecting an initiative to a specific KPI, required for each KPI impacted.
Drivers
Drivers explain the causal mechanism by which an initiative influences a KPI. Each KPI impacted by an initiative must have its own driver.
Related:
KPI, Initiative, Strategic Alignment
E
Enterprise View (Capital Flow & Governance Intelligence)
The Enterprise View provides a system-level perspective of value expected, value created, and value captured across the lifecycle. It is the governance window for portfolio balance, variance, decision accuracy, and long-term organizational learning.
Related:
ROI Capture, Variance, Decision Accuracy KPI, Portfolio Quality, Follow-the-Money
Execution Readiness
The minimal governance gate that follows approval, involving baseline lock without additional project documentation.
Expected Value
The central estimate in a KPI’s sensitivity range representing the best governance-approved prediction of impact.
F
Feasibility Score
Feasibility is a governance-assigned score (1–5) reflecting the organization’s ability to deliver the initiative. It is independent of initiative desirability or ROI.
Related:
DPI, Initiative, Portfolio Owner, Governance Flow
Follow-the-Money
A conceptual model in the Enterprise View tracking value from expected to created to captured.
Funding Bands
Categorical decision zones (Now / Soon / Later / Rethink) based on DPI ranges used to sequence investment.
Funding Bands (Now / Soon / Later / Rethink)
Funding bands categorize initiatives based on DPI ranges and feasibility. They provide a fast, transparent structure for investment sequencing.
Related:
DPI, Strategic ROI Matrix™, Decision
G
Governance Administrator
The role responsible for KPI definitions, ROI types, drivers, feasibility scoring standards, and value model integrity.
Governance Flow
The structured process ensuring all initiatives pass through correct roles and modeling gates before approval.
Governance Roles (Core Taxonomy)
Thorec® defines clear governance roles: System Owner, Governance Administrator, Portfolio Owner, Supervisor, Initiative Owner, Contributor, Viewer, Auditor.
Each with distinct responsibilities to maintain integrity and separation of duties (SoD).
I
Initiative Owner
The role responsible for modeling initiative impact, defining drivers, and completing value ranges before supervision.
Initiatives
Initiatives are discrete, value-creating changes that influence one or more KPIs. They are modeled lightly, with strategic clarity and minimal bureaucracy.
Related:
KPI, Driver, DPI, Feasibility Score, Baseline Lock
K
KPI (Key Performance Indicator)
A KPI is the unit of value in Thorec®, representing a measurable manifestation of strategic objectives. Each KPI belongs to exactly one quadrant.
Related:
Strategic Alignment, Quadrant, Driver, Sensitivity Range, Initiative
KPI Coverage
A measure of how many KPIs are currently supported by initiatives, displayed only in the Enterprise View.
L
Later (Funding Band)
A lower-priority category for initiatives with modest DPI or strategic relevance.
Least Privilege Principle
A governance principle ensuring each role has only the minimum access required to perform its function.
M
Market Differentiation (Quadrant)
Quadrant with initiatives that strengthen an organization’s competitive position by improving how it is perceived and chosen in the market. These initiatives drive Strategic ROI by enhancing brand trust, customer experience, innovation leadership, societal impact and more.
Maturity (KPI Maturity)
A long-term pattern of improvement or regression in strategic KPIs, monitored within the Enterprise View.
Max Value
The upper bound of a KPI’s sensitivity range, used to capture optimistic scenario potential.
Min Value
The lower bound of a KPI’s sensitivity range, used to capture conservative or risk-aware scenarios.
Modeling Principles (Lightweight Governance)
Modeling in Thorec® is intentionally simple: Only information required for DPI and governance is captured.
No financial modeling, task planning, or project management artifacts are included.
MROI (Monetary ROI)
Tangible, operational, or financial value typically found in Operational Efficiency and Sales & Service Performance quadrants.
MVP (Capture State)
The point where an initiative reaches minimum viable form and becomes eligible for ROI Capture.
N
Not Recommended / Rethink (Funding Band)
A category assigned to low-DPI or non-strategic initiatives that should not be funded.
O
Operational Efficiency (Quadrant)
KPIs and initiatives focused on process improvement, cost efficiency, and productivity gains measured through MROI.
Organizational Capabilities (Quadrant)
Quadrant with initiatives that build the internal foundations required for sustained performance and adaptability. These include skills, data maturity, operating models, culture, governance and more.
P
Portfolio Overview
A summary of initiative distribution, quadrant balance, variance trends, and KPI coverage shown in the Enterprise View.
Portfolio Owner
The governance role responsible for prioritization readiness, feasibility scoring, and strategic alignment review.
Portfolio Quality
Portfolio quality refers to the overall health of the initiative portfolio, including quadrant balance, KPI coverage, feasibility distribution, and decision accuracy. It is visible only in the Enterprise View.
Related:
Quadrant Balance, KPI Coverage, Decision Accuracy KPI, Enterprise View
Q
Quadrant
A strategic domain in the ROI Matrix categorizing KPIs and initiatives as Organizational Capabilities, Operational Efficiency, Market Differentiation, or Sales & Service Performance.
Quadrant Balance
Quadrant balance reflects the distribution of initiatives and KPI impact across the four strategic domains. It ensures both short-term and long-term value are addressed.
Related:
Strategic ROI Matrix™, Portfolio Quality, Enterprise View
R
Rethink / Not Recommended (Funding Band)
A category assigned to low-DPI or non-strategic initiatives that should not be funded.
Risk (SROI/MROI Risk)
The likelihood that value creation will deviate significantly from Expected; expressed implicitly through sensitivity ranges.
ROI Capture
ROI Capture validates realized value using a simple, qualitative method with four states:
MVP → Adopted → Variance → Closed.
It provides learning and indication, not financial reporting.
Related:
MVP, Adopted, Variance, Closed, Realized Value
ROI Types (MROI, SROI, cSROI)
- MROI represents tangible, operational economic outcomes.
- SROI represents long-term, strategic or intangible outcomes.
- cSROI is SROI that can optionally be converted to monetary terms without becoming MROI.
Role Governance
The structured assignment of responsibilities ensuring separation of duties and decision integrity.
S
Sales & Service Performance (Quadrant)
KPIs and initiatives driving customer-facing performance and revenue-related outcomes, measured through MROI.
Scenario Engine
The computational logic that processes KPI value ranges, feasibility scores, and quadrant placement to compute DPI.
Sensitivity Range (Min / Expected / Max)
Each KPI’s potential impact is expressed as a sensitivity range capturing uncertainty rather than precision. It forms the basis for ROI scoring and future variance evaluation.
Related:
Expected Value, ROI Score, Variance, KPI
Separation of Duties (SoD)
A governance principle preventing any single role from controlling modeling, validation, and approval.
SROI (Strategic ROI)
Long-term or capability-building value, typically non-monetary unless optionally converted (cSROI).
Strategic Alignment
Every initiative must link to a strategic objective through its KPI(s). Strategic alignment is validated during governance review before the baseline is locked.
Related:
KPI, Initiative, Governance Review
Strategic Quadrants
The quadrants categorize KPIs and initiatives into four strategic domains:
1) Organizational Capabilities
2) Operational Efficiency,
3) Market Differentiation,
4) Sales & Service Performance.
Quadrants determine ROI type and strategic balance.
Related:
KPI, ROI Type, Quadrant Balance, Strategic Alignment
Strategic ROI Matrix™ (Decision Engine)
The Strategic ROI Matrix™ is the prioritization engine that ranks initiatives using DPI, feasibility, and strategic quadrant balance. It supports rapid, evidence-based investment decisions.
Related:
DPI, Initiative, Quadrant Balance, Funding Bands, Decision
Supervisor
The quality gatekeeper role validating all modeling assumptions before approval.
T
Thorec®
The governance infrastructure for capital allocation, comprising the Strategic ROI Matrix™, ROI Capture and Governance Quality.
V
Value Creation Cycle
The loop of expected → created → captured value tracked in the Enterprise View.
Value Flow Lifecycle
The end-to-end value chain in Thorec® is:
Strategy → KPI → Initiative → DPI → Decision → Execution Readiness → ROI Capture → Enterprise View (Learning & Capital Flow).
Related:
Role Governance, Separation of Duties, Decision
Variance
Variance represents meaningful deviation (positive or negative) from Expected value during Capture. Variance provides organizational learning rather than corrective action.
Related:
Expected Value, Realized Value, Decision Accuracy KPI, Enterprise View
Viewer
A transparency role with read-only access to initiatives, KPIs, and governance flows.