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Instilling rigor and imagination in analysis
INDICATORS: THE LINGUA FRANCA OF
ANALYTIC TECHNIQUES
IALEIA Webinar, July 18, 2012
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Two Concepts to Keep in Mind
1. Greg TrevertonIs our problem a puzzle or a mystery?
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2. Gary Klein: SensemakingOur brains automatically fit data into a frame and fit the frame around the data.
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Indicators as a Lingua Franca• Prepare us to attend to the
changes in puzzles or static frames.
• Help us think our way through the mysteries or forward-looking frames.
• Bridge our communication across cultures, disciplines, and analytic problems.
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Indicators
• What are Indicators?• Types of Indicators• Qualities of a Good Indicator• Developing a Useful Set of Indicators• Validating Indicators• Challenges in Using Indicators
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What are Indicators?• Indicators are observable
phenomena that (usually as part of a set) help you track events, spot emerging trends, and warn of unanticipated change.
• An indicator of a phenomenon, X, is a set of observable conditions, facts, or events whose joint occurrence would be very unlikely without the occurrence of X.
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Why Do We Use Indicators?Goal: An objective baseline to track events, instill rigor into the analytic process, and enhance the credibility of the product.
• Applications in Intelligence AnalysisoWarningo Signposts of Changeo Validationo AnticipationoGuide for Collection
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Different Uses of IndicatorsA pre-established set of Indicators is often used in the Intelligence/Law Enforcement Community as evidence to suggest:
• A target’s activities or behavior are consistent with an established pattern
(Backward-Looking)
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• A given hypothesis is correct or a forecasted scenario is emerging
(Forward-Looking)
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From a Student Taking an Exam…
10
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Qualities of Good Indicators
• Observable/Collectible [Practical]• Valid• Reliable• Stable• Unique
Specificity Is Critical!Copyright 2012 Pherson Associates, LLC. All Rights Reserved. www.pherson.org 11
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Qualities to Keep in Mind• Indicators that can be measured are more
objective than descriptive indicators.• Descriptive indicators may be necessary but
must be tangibly defined to be objective and reliable. o What does “nervous” or “abnormal” mean?o How can you determine “intent to do harm”?
• Index or composite indicator -- weighted or aggregated set of several indicators.
• Diagnostic indicators or sets distinguish among hypotheses or scenarios.
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Developing Indicators1. Clearly define the issue, question or
hypothesis of interest.2. Use structured brainstorming to generate
an inclusive list of activities, events or other observables that you would expect to see.o Think in multiple dimensions, e.g., political, social,
technological, environmental, economic, military, etc.
o Consider analogous sets of indicators drawn from similar or parallel circumstances.
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Developing Indicators3. Consider each indicator individually and in
conjunction with others within the set.• Are the indicators redundant?• Are they complementary?• Are they sufficiently comprehensive, i.e., are
they sufficient to meet the requirements of a good indicator?
• What are the collection strategies and priorities?
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Indicators of a Drug Laboratory• Noxious odors associated with chemical/industrial use.• Exhaust fans constantly running or running in cold
weather.• All windows darkened, covered, sealed and/or painted.• Abnormal use of electricity and water; high bills.• Purchase of large quantities of chemicals such as:
o Acetone in multi-gallon lots.o Sodiumhydroxide products (“Drano”) by the case.
• Purchase of lab supplies or equipment.
• Delivery frequently being made by parcel services of glassware, chemicals.
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Medicine: ABCDEs of Melanoma• Asymmetry• Border Irregular• Color Changes• Diameter Increase• Evolving
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Seven Signs of Terrorist Activity
• Surveillance• Elicitation• Test of Security • Acquiring Supplies• Suspicious People
Who Do Not Belong• Dry Runs• Deploying Assets
Getting Into PositionCopyright 2012 Pherson Associates, LLC. All Rights Reserved. www.pherson.org 17
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Indicators of Gang Dominance• Gangs take on defensive positions.• Gang Graffiti predominantly from one gang.• Decline in reports of inter-gang or gang-
related violence.• Decline in gang-related 911 calls.• Merchants report paying protection money to
the same gang.• Tattoo parlors report making tattoos for one
gang.• Police officers observe one gang’s colors on
the street.• Growing reports of gang intimidation of
recent migrants to the region.Copyright 2012 Pherson Associates, LLC. All Rights Reserved. www.pherson.org 18
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Insider Threat • Without need or authorization, takes
proprietary or other material home via documents, thumb drives, disks, or e-mail.
• Inappropriately seeks to obtain proprietary or classified information on subjects not related to their work duties.
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• Interest in matters outside the scope of their duties, particularly those of interest to foreign entities of business competitors.• Unnecessarily copies material, especially if it is proprietary or classified.• Remotely accesses computer network while on vacation, sick leave, or other odd times.
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Copyright 2012 Pherson Associates, LLC. All Rights Reserved. www.pherson.org 20
Foreign Reserves '" arning Threshold
Billion US
50
40
30
20
10
o
Dt"c ~Ia l' Jlln St"p Dt"c ~Ia l' Jlln S" p i\"OY Dt"c Jail Feb i\Iar
' 92 ' 93 ' 94 ' 95
'Yarning Threshold
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Copyright 2012 Pherson Associates, LLC. All Rights Reserved. www.pherson.org 21
Zalllbria Political Instability Indicators
Legend . Negligible COllcem • Substantial Prosperts for major r egime policy rhange 0 Low COn Celll • S tTOng D uring next s. ix months ,:) Modemte D urin g next s ix months to t\\'o years
1984 1985 1986 I II III IV I II III I V I II
Sodal t:hau gt'l couflic t Ethnid rdigious discontent · · · · · · · · · · Demonstrations, riots. strikes · · 0 0 0 J • • • • E c on omic [adOI"s General det""ioratiOll 0 l » J C) , ) ci ) » Decr('.ased access to foreign ftwds 0 J c 0 c 0 0 ) 0 0 Capital flight 0 0 0 ) I 0 • • • • U npopu lar cbanges in economic policies 0 0 0 0 • • • • • • F oodIenergy sbonages 0 0 0 0 • • • • • • Inflation 0 0 cI 0 0 J • • • • Opposition 3c tiyit i e-'> Organizational capabilities 0 · · · · · · 0 0 0 OPPOSitiOlllcouspiracy planning 0 0 0 0 0 0 ~ 0 0 Terrorism and 5.'\botage 0 0 ) 0 0 0 0 0 0 ) Insurgent anned attacks 0 0 0 0 0 0 0 0 0 0 Public suppon · · · · · · · · · ·
~lilitary attitudt's/a cti\"itips Threat to corpor-ate military in terests/dignity · · · · · · · 0 0 0 Discontent over- car-eel loss, payor benefits · · · · · · · 0 0 DiscoUlent over govemm enl acriou/policies , 0 0 0 0 L 0 .J • 1 Reports/rumors of coup plottin g 0 0 0 ) (' 0 0 j n n Exterual support for gov-=nunent 0 0 ) 0 , 0 0 0 E"'terual support for opposition 0 0 () 0 ('> 0 0 0 0 0 Threat of military conflict n 0 n · · · · · · ·
R i'Kime ac r.ioD';/capabHities Repression/brutality , 0 t t oJ! • :II , t 1 Security capabilities · · · · 0 U 0 0 0 0 Politica l disunitylloss of confidence n 0 " n n 0 n u n n Loss oflegitimacy • I 1 cJ ) 0 I J )
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Copyright 2012 Pherson Associates, LLC. All Rights Reserved. www.pherson.org 22
• "A.llunO:l ::>lfl 01 l;)llq ::> .... OUI
'i.l=>qUl::>lU AI~lUIlJ r;'Q=>lI ·p::>UOpUllqll ::>lIqs SU~.JOqqS!;oU u! .. dum:> ISOW ";'P!"'U! p=><mq <;:'!ls'!ilollSOlU pUl~ s.I::>t.mnbpll=>q I~;'(l
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ChallengesAnalysts must periodically review the validity and relevance of an indicators list.
• Narrowly conceived or outdated indicators can:oReinforce analytic biases.oEncourage analysts to discard new evidence.oLull consumers inappropriately.
• Original assumptions may be flawed.• Indicators may be invalid. They may have proven to
be poor “pointers” to what they were supposed to represent.
• Issues evolve.• Targets learn your indicators and adapt.
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Indicators Validator™Definition: A simple technique for assessing the diagnostic power of indicators.
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Why Use IV: • IV helps ensure the credibility of the analysis by
identifying and dismissing non-diagnostic indicators or, in other words, those indicators that point to multiple futures.
When to Use IV: • When you need to develop a robust set of
indicators to help anticipate the future. • When you need to challenge your (or other’s)
assessment of the indicators.
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The Method1. List a set of mutually exclusive scenarios across
the top of the matrix.2. Brainstorm indicators for each and list them down
the left side of the matrix.3. Consider each indicator against each scenario.
o Is it Highly Likely to Appear, Likely to Appear, Could Appear, Unlikely to Appear, Highly Unlikely to Appear?
o Is it common to more than one?oDoes it provide uniqueness because it only appears in
one or because its presence would be invalidating?o Is it necessary or just nice to have?
(How important is it?)Copyright 2012 Pherson Associates, LLC. All Rights Reserved. www.pherson.org 26
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The Method4. Resort the indicators so the most
diagnostic are at the top.o Create a revised list of necessary or discriminating
indicators for each scenario.o Consider whether you have enough indicators for
each scenario.o Will set of indicators provide full coverage?
5. Eliminate those with few Unlikely or Highly Unlikely ratings.
6. Track indicators and brainstorm new ones to see which scenario is evolving.
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Indicators Validator™ Matrix
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Indicators Validator™ Matrix Group Matrix
~Filt..A ... Iy_ CUlTently d il pleying : All
Ol.reg., Indicator
•
III : uT If ..... . lIICId. ...... 19: leT ptllCtOCfl_odI
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111 : leT _Nil. ollie ... ......
Mild Oi5put e
51 : LeT attacks Taj Hotel with smal arms and 9I'0f\IId0s
HU
HU
U
HU
U
' J Ii ", HU
52 : leT attacks mu~ipIe simu~aooous targotS with sma. arms ani ... ]
HU
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HL
HU
U
OPil Show Disregarde d Indicatorsi!l I'iSI
53: leT mul\:>iD simultanoous WOOlS w~h suiciOO bombo"
HL
HL
HL
L
HL
L
54: leT muftiplo simultanoous WOOlS w~h HosIagO Taking
HU
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NOles
· ... AI.~"""
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· ... AlI....,x""",
· "'-AnllO'llllOord
'"
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ConclusionThe key points to remember about Indicators and the Indicator Validator™:
• The 5 qualities of a good indicator. • Develop both forward and backward looking
indicators!• Periodically review your indicators.• Verify that an indicator is pointing to the future
that you think it is with the Indicator Validator™.
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For More Information
Heuer and R. Pherson, 2010
Miller and R. Pherson, 2011
Heuer,1999
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What’s New
K. Pherson and R. Pherson, Oct. 2012
ThinkSuite™
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www.globalytica.com
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Questions or Comments?
Kathy PhersonPherson Associates, LLCPhone: (703) 390-9902Email: [email protected]: www.pherson.org
32 Copyright 2012 Pherson Associates, LLC. All Rights Reserved. www.pherson.org
Website: www.pherson.org
Copyright 2012 Pherson Associates, LLC. All Rights Reserved.