Readers have brought my attention to several articles on flag framing. Basically, "flags"are all data objects on the character sheet.
If you haven't done so yet, I urge you to go read these insightful articles by experienced gamemasters.
This article aims at clarifying the relationship between flags and systematic strategic exploitation through the THACOSG, and the manner in wich the strategic gamemastering method can be used to design plot hooks for preexisting scenarios.