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The Compounding Model

License: MIT Release AI assessment

A tested and validated procedure that takes a software project — wherever it stands today — to Stage 3 (Compounding) AI maturity.

Start here: run the AI assessment — your own agent audits your repos and pipelines and grades you on evidence, not self-declaration (prompt) — then hand your agent the quick start: it executes day one and stops only where a decision is genuinely yours.

This is not an opinion piece. Every gate, guard and standard in it was exercised in production by the AI agents it governs before it was written down — where a rule exists, its absence cost something first — and the whole was validated against a formal enterprise maturity framework. It contains no information about any specific project.

Written for your agent, not for you

This repository's reader is an AI agent. Every document is written to be fetched and executed: the assessment is a prompt, the quick start is an instruction set, CLAUDE.md is the agent's contract, the runbooks are sized to an agent's read window, and the standards are phrased as checks a tool boundary can enforce. Your part is judgment: the marked decision stops, the approval gates, the steering reviews. Give it to your agent and watch it do the job — that is not a slogan, it is the operating philosophy this repository exists to install: humans decide, agents execute, and every execution leaves evidence.

The model

Six questions, three stages. A team's stage is the lowest answer it can prove — maturity is a chain, not an average:

  1. Stage 1 — Ad hoc: AI is a personal tool.
  2. Stage 2 — Systematic: AI is a team practice.
  3. Stage 3 — Compounding: AI is part of the operating model, and every use makes the next one better.
# Question Stage 1 — Ad hoc Stage 2 — Systematic Stage 3 — Compounding
1 Where does AI act? isolated coding tasks most delivery stages end-to-end workflows incl. operations; agents queue prod, humans land it
2 Who does it act as? shared keys, anonymous named accounts per-person agent identity; unattributed writes refused
3 What does it cost — is it worth it? unknown spend visible per tool every call attributed + priced; unit-economics reviews change decisions
4 How good is its output? vibes human spot-review judged: sampled verdicts, eval harness gating model swaps, honest "can't grade"
5 Does capability compound? nothing persists shared assets with owners a factory: assets as code through their own gates; lessons served back during work
6 Who carries it? a few enthusiasts named champions per team fluency in every role; daily usage proven from telemetry

Every claim is proven with an artifact and the mechanism that produces it continuously — see maturity-model.md and the evidence checklists.

What the model guides and enforces

The six questions are not a scorecard bolted onto a delivery system — they generate it. Each question, taken seriously, demands a set of standards; this repository is those standards, written down and wired to tool boundaries:

flowchart LR
  M{{"THE COMPOUNDING MODEL<br/>six questions · three stages<br/>stage = lowest provable answer"}}
  M -->|guides| SOL["Business → solution<br/><i>solution/</i>"]
  M -->|guides| ARC["Architecture & 16 seeded decisions<br/><i>architecture/ · decisions/</i>"]
  M -->|guides| FND["Cloud foundation · IaC · identity<br/><i>baseline/</i>"]
  M -->|guides| OPS["Operations & the monitoring map<br/><i>operations/</i>"]
  M -->|enforces| DEL["Delivery & quality gates<br/><i>baseline/devops · enforcement/</i>"]
  M -->|enforces| SEC["DevSecOps & security operations<br/><i>security/</i>"]
  M -->|enforces| FAC["The AI factory & agent identity<br/><i>baseline/factory · ai-standards</i>"]
  M -->|enforces| EVD["Evidence per stage<br/><i>evidence/</i>"]
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Category What the model demands Where
Business → solution every build traces to a named outcome with a falsifiable value hypothesis; NFR targets agreed before design; effects measured after shipping solution/
Decisions start from 16 pre-accepted defaults — cloud, IaC, identity, network, runtime (VMs included), data, secrets, delivery, observability, AI access, APIs, docs-as-code, cost, DevSecOps, knowledge & work, data & analytics; disagree by superseding, never by drifting decisions/
Architecture quality attributes drive structure; boundaries follow the domain; failure is designed per dependency; structure is enforced by fitness functions in CI — and the factory has its own hub-spoke infrastructure architecture/
Cloud foundation & IaC a governed hierarchy with one isolation boundary per workload+environment; policy as code; Terraform on verified modules; pipeline-only state; drift is an incident — with Azure · AWS · GCP mappings baseline/cloud-foundation.md, baseline/terraform.md
Identity groups + PIM for humans, federated identities for workloads, agents act as the person driving them — anonymous writes are refused baseline/identity.md
Delivery & quality PR-only through the AI merge gate; build once, promote the artifact; guards refuse unsafe deploys; a human lands production; done means verified on the running system baseline/devops.md, baseline/quality.md, enforcement/
Security the scan lane rides the delivery pipeline (secrets/SAST/SCA/IaC/image/SBOM/signing/DAST); findings carry owners, SLAs and expiring suppressions; posture, SIEM and rotation run forever after security/
AI platform & factory one model gateway with isolated quota; every call attributed and priced; output judged with honest "can't grade"; AI assets are code shipped through their own gates; every agent connects through one MCP socket for every question and action baseline/ai-standards.md, baseline/factory.md
Knowledge & work the wiki of record and the work tracker are live tools: federated search, attributed comments; an action without a ticket never happened; agents never open tickets unasked baseline/knowledge-work-integration.md
Data & analytics notebooks are code through the gate; catalog + lineage mandatory; data tests gate layer promotion; freshness SLOs render "stale since", never silently old numbers baseline/data-analytics.md
Operations & monitoring SLOs with error budgets; incidents become lessons the AI serves back; seven monitoring altitudes, each with an owner; failed ≠ empty operations/
Evidence & people champions with mandated time; every stage claim proven by an artifact and the mechanism producing it evidence/, templates/

Navigate by role

How to use this repository

You don't work through it — your agent does. What you watch happen:

  1. It assesses you: the agent runs the AI assessment against your real repos and pipelines — the verdict names your weakest links.
  2. It stands up day one (quick start, roadmap phase 0): the rails, the secrets policy, the registry — and it presents the 16 seeded decisions, where you decide: disagreements become superseding ADRs the same day, and the external clocks (boundary vending, consents, quotas) start ticking.
  3. It builds the factory (phases 1–2): from architecture/factory-infrastructure.md it provisions the factory's own spoke as IaC through the pipeline, then builds the thirteen utilities in order — the enforcement spine (1–4) first — each landing as a gated PR, registered at birth. The factory is not installed; it is built by the agent it will govern.
  4. It observes and operates (phase 3): the monitoring map and SRE practice; incidents feed the lessons library it serves back to the team.
  5. It attaches delivery to value (phase 4): the solution front-half — intake, business cases with falsifiable hypotheses, NFR targets, benefits checks measured after shipping.
  6. It keeps the evidence green (evidence/) so validation is an export, not an archaeology project.

The roadmap sequences all of this by dependency, not calendar: the agent builds in hours; the calendar belongs to human decisions, cloud lead times and the days evidence needs to accumulate.

The invariants

Humans decide, agents execute, every execution leaves evidence. Trace every build to a business outcome; enforce the invariant, not a ban; measure what you cannot enforce; write down every lesson with what it cost; and let the factory ship itself through its own gates.

About

A tested, production-validated procedure that takes a software project to Stage 3 (Compounding) AI maturity: business-to-solution traceability, seeded architecture decisions, cloud (Azure·AWS·GCP) and Terraform standards, DevSecOps, an enforceable AI delivery factory, and the evidence to prove every claim.

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