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skills/kill-criteria-exit-ramps/SKILL.md
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skills/kill-criteria-exit-ramps/SKILL.md
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name: kill-criteria-exit-ramps
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description: Use when defining stopping rules for projects, avoiding sunk cost fallacy, setting objective exit criteria, deciding whether to continue/pivot/kill initiatives, or when users mention kill criteria, exit ramps, stopping rules, go/no-go decisions, project termination, sunk costs, or need disciplined decision-making about when to quit.
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---
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# Kill Criteria & Exit Ramps
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## Purpose
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Kill criteria are pre-defined, objective conditions that trigger stopping a project, product, or initiative. Exit ramps are specific decision points where you evaluate whether to continue, pivot, or kill. This skill helps avoid sunk cost fallacy and opportunity cost by establishing discipline around quitting.
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Use this skill when:
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- **Starting new projects**: Define kill criteria upfront before emotional/financial investment
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- **Evaluating ongoing initiatives**: Decide whether to continue, pivot, or stop
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- **Avoiding sunk cost trap**: "We've invested too much to quit now"
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- **Portfolio management**: Which projects to kill to free resources for winners
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- **Setting go/no-go gates**: Milestone-based decision points
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- **Managing risk**: Exit before losses escalate
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The hardest decision is often knowing when to quit. Kill criteria remove emotion and politics from stopping decisions.
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---
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## Common Patterns
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### Pattern 1: Upfront Kill Criteria (Before Launch)
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**When**: Starting new project, experiment, or product
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**Process**: (1) Define success metrics ("10% conversion"), (2) Set time horizon ("6 months"), (3) Establish kill criteria ("If <5% after 6 months, kill"), (4) Assign decision rights (specific person), (5) Document formally (signed PRD)
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**Example**: New feature — Success: 20% adoption in 3 months, Kill: <10% adoption, Decision: Product VP makes call
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### Pattern 2: Go/No-Go Gates (Milestone-Based)
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**When**: Multi-stage projects with increasing investment
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**Structure**: Stage 1 (cheap, concept) → Go/No-Go → Stage 2 (moderate, MVP) → Go/No-Go → Stage 3 (expensive, launch) → Go/No-Go
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**Example**: Gate 1 (4wk, $10k): 15+ customer interviews show interest → GO. Gate 2 (3mo, $50k): 40% weekly active (got 25%) → NO-GO, kill
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**Benefit**: Small investments first, kill before expensive stages
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### Pattern 3: Trigger-Based Exit Ramps
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**When**: Ongoing projects with uncertain outcomes
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**Common triggers**: Time-based ("not profitable by Month 18"), Metric-based ("churn >8% for 2 months"), Market-based ("competitor launches"), Resource-based ("budget overrun >30%"), Opportunity-based ("better option emerges")
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**Example**: SaaS — Trigger 1: MRR growth <10%/mo for 3 months → Evaluate. Trigger 2: CAC payback >24mo → Evaluate. Trigger 3: Competitor raises >$50M → Evaluate
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**Note**: Triggers prompt evaluation, not automatic kill
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### Pattern 4: Pivot vs. Kill Decision
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**When**: Project isn't working as planned — should you pivot or kill?
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**Framework**:
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**Pivot if**:
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- Core insight is valid but execution is wrong
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- Customer pain is real, solution is wrong
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- Market exists, go-to-market is wrong
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- Learning rate is high (discovering new insights rapidly)
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- Resource burn is sustainable (not desperation mode)
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**Kill if**:
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- No customer pain (nice-to-have, not must-have)
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- Market too small (can't sustain business)
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- Burn rate too high relative to progress
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- Team doesn't believe in vision
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- Better opportunities available (opportunity cost)
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- Regulatory/legal blockers
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**Example**: Mobile app with low engagement
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- **Situation**: Launched fitness app, 10k downloads, 5% weekly active (target was 40%)
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- **Pivot option**: Interviews reveal users want meal tracking not workout tracking → Pivot to nutrition app
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- **Kill option**: Users don't care about fitness tracking at all, market saturated → Kill, reallocate team
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**Decision**: Pivot if hypothesis valid but execution wrong. Kill if hypothesis invalid.
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### Pattern 5: Portfolio Kill Criteria (Multiple Projects)
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**When**: Managing portfolio of projects, need to kill some to focus
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**Process**:
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1. **Rank by expected value**: ROI, strategic fit, resource efficiency
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2. **Define minimum threshold**: "Top 70% of portfolio gets resources"
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3. **Kill bottom 30%**: Projects below threshold, regardless of sunk cost
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4. **Reallocate resources**: Winners get resources from killed projects
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**Example**: Company with 10 projects, capacity for 7
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- Rank by: (Expected Revenue × Probability of Success) / Resource Cost
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- Kill: Projects ranked #8, #9, #10 (even if they're "almost done")
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- Reallocate: Engineers from killed projects to top 3
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**Principle**: Opportunity cost matters more than sunk cost. "Almost done" doesn't justify continuing if better alternatives exist.
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### Pattern 6: Sunk Cost Trap Avoidance
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**When**: Team resists killing project due to past investment
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**Technique**: **Pre-mortem inversion**
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1. Ask: "If we were starting today with zero investment, would we start this project?"
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2. If answer is "No" → Kill (sunk costs are irrelevant)
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3. If answer is "Yes, but differently" → Pivot
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4. If answer is "Yes, exactly as-is" → Continue
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**Example**: Failed enterprise sales push
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- **Situation**: 18 months, $2M spent, 2 customers (need 50 for viability)
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- **Inversion**: "If starting today, would we pursue enterprise sales?" → "No, we'd focus on self-serve SMB"
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- **Decision**: Kill enterprise sales, pivot to SMB (sunk $2M is irrelevant)
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**Trap**: "We've invested so much, we can't quit now" → This is sunk cost fallacy
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**Escape**: Only future costs and benefits matter. Past is gone.
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---
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## Workflow
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Use this structured approach when defining or applying kill criteria:
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```
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□ Step 1: Define success metrics and time horizon
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□ Step 2: Establish objective kill criteria
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□ Step 3: Assign decision rights and governance
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□ Step 4: Set milestone gates or trigger points
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□ Step 5: Document formally (signed agreement)
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□ Step 6: Monitor metrics regularly
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□ Step 7: Evaluate at gates/triggers
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□ Step 8: Execute kill decision (if triggered)
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```
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**Step 1: Define success metrics and time horizon** ([details](#1-define-success-metrics-and-time-horizon))
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Specify quantifiable success criteria (e.g., "20% conversion") and evaluation period (e.g., "6 months post-launch").
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**Step 2: Establish objective kill criteria** ([details](#2-establish-objective-kill-criteria))
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Set numeric thresholds that trigger stop decision (e.g., "If <10% conversion after 6 months"). Make criteria objective, not subjective.
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**Step 3: Assign decision rights and governance** ([details](#3-assign-decision-rights-and-governance))
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Name specific person who makes kill decision. Define escalation process. Avoid "team consensus" (leads to paralysis).
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**Step 4: Set milestone gates or trigger points** ([details](#4-set-milestone-gates-or-trigger-points))
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For multi-stage projects: define go/no-go gates. For ongoing projects: define triggers that prompt evaluation.
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**Step 5: Document formally** ([details](#5-document-formally))
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Write kill criteria in PRD, project charter, or investment memo. Get stakeholders to sign/approve before launch (prevents moving goalposts).
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**Step 6: Monitor metrics regularly** ([details](#6-monitor-metrics-regularly))
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Track metrics weekly/monthly. Dashboard with kill criteria thresholds clearly marked. Automate alerts when approaching thresholds.
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**Step 7: Evaluate at gates/triggers** ([details](#7-evaluate-at-gatestriggers))
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When gate or trigger hit, conduct formal evaluation. Use pre-mortem inversion: "Would we start this today?" Decide: continue, pivot, or kill.
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**Step 8: Execute kill decision** ([details](#8-execute-kill-decision))
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If kill triggered: communicate decision, wind down project, reallocate resources, conduct postmortem. Execute quickly (avoid zombie projects).
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---
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## Critical Guardrails
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### 1. Set Kill Criteria Before Launch (Not After)
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**Danger**: Defining kill criteria after project starts leads to moving goalposts
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**Guardrail**: Write kill criteria in initial project document, before emotional/financial investment. Get stakeholder sign-off.
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**Red flag**: "We'll figure out when to stop as we go" — this leads to sunk cost trap
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### 2. Make Criteria Objective (Not Subjective)
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**Danger**: Subjective criteria ("team feels it's not working") are easy to ignore
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**Guardrail**: Use quantifiable metrics (numbers, dates, milestones). "5% conversion" not "low adoption". "6 months" not "reasonable time".
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**Test**: Could two people independently evaluate criteria and reach same conclusion? If not, too subjective.
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### 3. Assign Clear Decision Rights
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**Danger**: "Team decides" or "we'll discuss" leads to paralysis (everyone has sunk cost)
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**Guardrail**: Name specific person who makes kill decision. Define what data they need. Escalation path for overrides.
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**Example**: "Product VP makes kill decision based on 6-month metrics. Can be overridden only by CEO with written justification."
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### 4. Don't Move the Goalposts
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**Danger**: When kill criteria approached, team lowers bar or extends timeline
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**Guardrail**: Kill criteria are fixed at launch. Changes require formal process (written justification, senior approval, new document).
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**Red flag**: "Let's give it another 3 months" when 6-month criteria not met
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### 5. Sunk Costs Are Irrelevant
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**Danger**: "We've invested $2M, can't stop now" — sunk cost fallacy
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**Guardrail**: Use pre-mortem inversion: "If starting today with $0 invested, would we do this?" Only future matters.
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**Principle**: Past costs are gone. Only question: "Is future investment better here or elsewhere?"
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### 6. Kill Quickly (Avoid Zombie Projects)
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**Danger**: Projects that should be killed linger, draining resources ("zombie projects")
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**Guardrail**: Kill decision → immediate wind-down. Announce within 1 week, reallocate team within 1 month.
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**Red flag**: Project in "wind-down" for >3 months — this is zombie mode, not killing
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### 7. Opportunity Cost > Sunk Cost
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**Danger**: Continuing project because "almost done" even if better opportunities exist
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**Guardrail**: Portfolio thinking. Ask: "Is this the best use of these resources?" If not, kill even if 90% done.
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**Principle**: Opportunity cost of *not* pursuing better option often exceeds benefit of finishing current project
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### 8. Postmortem, Don't Blame
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**Danger**: Kill decisions seen as "failure", teams avoid them
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**Guardrail**: Normalize killing projects. Celebrate disciplined stopping. Postmortem focuses on learning, not blame.
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**Culture**: "We killed 3 projects this quarter" = good (freed resources for winners), not bad (failures)
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---
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## Quick Reference
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### Kill Criteria Checklist
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Before launching project, answer:
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- [ ] Success metrics defined? (quantifiable, e.g., "20% conversion")
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- [ ] Time horizon set? (e.g., "6 months post-launch")
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- [ ] Kill criteria established? (e.g., "If <10% conversion after 6 months, kill")
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- [ ] Decision rights assigned? (specific person, not "team")
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- [ ] Documented formally? (in PRD, signed by stakeholders)
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- [ ] Monitoring plan? (who tracks, how often, dashboard)
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- [ ] Wind-down plan? (how to kill if criteria triggered)
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### Go/No-Go Gate Template
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| Gate | Investment | Timeline | Success Criteria | Decision |
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|------|-----------|----------|------------------|----------|
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| Gate 1: Concept | $10k | 4 weeks | 15+ customer interviews showing strong interest | GO / NO-GO |
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| Gate 2: MVP | $50k | 3 months | 40% weekly active users (50 beta users) | GO / NO-GO |
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| Gate 3: Launch | $200k | 6 months | 10% conversion, <$100 CAC | GO / NO-GO |
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### Pivot vs. Kill Decision Framework
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| Factor | Pivot | Kill |
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|--------|-------|------|
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| Customer pain | Real but solution wrong | No pain, nice-to-have |
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| Market size | Large enough | Too small |
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| Learning rate | High (new insights) | Low (stuck) |
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| Burn rate | Sustainable | Too high |
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| Team belief | Believes with changes | Doesn't believe |
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| Opportunity cost | Pivot is best option | Better options exist |
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---
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## Resources
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### Navigation to Resources
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- [**Templates**](resources/template.md): Kill criteria document, go/no-go gate template, pivot/kill decision framework, wind-down plan
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- [**Methodology**](resources/methodology.md): Sunk cost psychology, portfolio management, decision rights frameworks, postmortem processes
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- [**Rubric**](resources/evaluators/rubric_kill_criteria_exit_ramps.json): Evaluation criteria for kill criteria quality (10 criteria)
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### Related Skills
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- **expected-value**: For quantifying opportunity cost of continuing vs. killing
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- **hypotheticals-counterfactuals**: For pre-mortem analysis ("what if we had killed earlier?")
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- **decision-matrix**: For comparing continue/pivot/kill options
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- **postmortem**: For learning from killed projects
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- **portfolio-roadmapping-bets**: For portfolio-level kill decisions
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---
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## Examples in Context
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### Example 1: Startup Feature Kill
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**Context**: SaaS launched "Advanced Analytics", kill criteria: <15% adoption after 3 months
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**Result**: 12% adoption → Killed feature, reallocated 2 engineers to core. Saved 6 months maintenance.
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### Example 2: Enterprise Sales Pivot
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**Context**: B2B SaaS, pivot trigger: <10 customers by Month 12
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**Result**: 7 customers → Pivoted to self-serve SMB. Hit 200 SMB customers in 6 months, 4× faster growth.
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### Example 3: R&D Portfolio Kill
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**Context**: 8 R&D projects, capacity for 5. Ranked by EV/Cost: A(3.5), B(2.8), C(2.5), D(2.1), E(1.8), F(1.5), G(1.2), H(0.9)
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**Decision**: Killed F, G, H despite F being "80% done". Top 3 projects shipped 4 months earlier.
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