diff --git a/apis/condition_set.go b/apis/condition_set.go
index 49f9d2e9b6..8d02fec485 100644
--- a/apis/condition_set.go
+++ b/apis/condition_set.go
@@ -142,6 +142,11 @@ type conditionsImpl struct {
 	accessor ConditionsAccessor
 }
 
+// GetTopLevelConditionType is an accessor for the top-level happy condition.
+func (r ConditionSet) GetTopLevelConditionType() ConditionType {
+	return r.happy
+}
+
 // Manage creates a ConditionManager from an accessor object using the original
 // ConditionSet as a reference. Status must be a pointer to a struct.
 func (r ConditionSet) Manage(status ConditionsAccessor) ConditionManager {
diff --git a/reconciler/reconcile_common.go b/reconciler/reconcile_common.go
new file mode 100644
index 0000000000..38e3bbe383
--- /dev/null
+++ b/reconciler/reconcile_common.go
@@ -0,0 +1,55 @@
+/*
+Copyright 2020 The Knative Authors
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    https://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package reconciler
+
+import (
+	"context"
+
+	duckv1 "knative.dev/pkg/apis/duck/v1"
+	"knative.dev/pkg/logging"
+)
+
+const failedGenerationBump = "NewObservedGenFailure"
+
+// PreProcessReconcile contains logic to apply before reconciliation of a resource.
+func PreProcessReconcile(ctx context.Context, resource duckv1.KRShaped) {
+	newStatus := resource.GetStatus()
+
+	if newStatus.ObservedGeneration != resource.GetObjectMeta().GetGeneration() {
+		condSet := resource.GetConditionSet()
+		manager := condSet.Manage(newStatus)
+
+		// Reset Ready/Successful to unknown. The reconciler is expected to overwrite this.
+		manager.MarkUnknown(condSet.GetTopLevelConditionType(), failedGenerationBump, "unsuccessfully observed a new generation")
+	}
+}
+
+// PostProcessReconcile contains logic to apply after reconciliation of a resource.
+func PostProcessReconcile(ctx context.Context, resource duckv1.KRShaped) {
+	logger := logging.FromContext(ctx)
+	newStatus := resource.GetStatus()
+	mgr := resource.GetConditionSet().Manage(newStatus)
+
+	// Bump observed generation to denote that we have processed this
+	// generation regardless of success or failure.
+	newStatus.ObservedGeneration = resource.GetObjectMeta().GetGeneration()
+
+	rc := mgr.GetTopLevelCondition()
+	if rc.Reason == failedGenerationBump {
+		logger.Warn("A reconciler observed a new generation without updating the resource status")
+	}
+}
diff --git a/reconciler/reconcile_common_test.go b/reconciler/reconcile_common_test.go
new file mode 100644
index 0000000000..b61cc03996
--- /dev/null
+++ b/reconciler/reconcile_common_test.go
@@ -0,0 +1,96 @@
+/*
+Copyright 2020 The Knative Authors
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    https://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package reconciler
+
+import (
+	"context"
+	"testing"
+
+	corev1 "k8s.io/api/core/v1"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+
+	"knative.dev/pkg/apis"
+	duckv1 "knative.dev/pkg/apis/duck/v1"
+)
+
+func makeResource(topLevelCond string) *duckv1.KResource {
+	fooCond := apis.Condition{
+		Type:    "Foo",
+		Status:  corev1.ConditionTrue,
+		Message: "Something something foo",
+	}
+	readyCond := apis.Condition{
+		Type:    apis.ConditionType(topLevelCond),
+		Status:  corev1.ConditionTrue,
+		Message: "Something something bar",
+	}
+
+	return &duckv1.KResource{
+		ObjectMeta: metav1.ObjectMeta{
+			Generation: 42,
+		},
+
+		Status: duckv1.Status{
+			ObservedGeneration: 0,
+			Conditions:         duckv1.Conditions{fooCond, readyCond},
+		},
+	}
+}
+
+func TestPreProcessResetsReady(t *testing.T) {
+	testCases := []struct {
+		name                      string
+		initTopLevelCond          string
+		expectedTopLevelCondition apis.ConditionType
+	}{{
+		name:                      "top level Ready",
+		initTopLevelCond:          "Ready",
+		expectedTopLevelCondition: apis.ConditionReady,
+	}, {
+		name:                      "top level Succeeded",
+		initTopLevelCond:          "Succeeded",
+		expectedTopLevelCondition: apis.ConditionSucceeded,
+	}}
+
+	for _, test := range testCases {
+		t.Run(test.name, func(t *testing.T) {
+			resource := makeResource(test.initTopLevelCond)
+			krShape := duckv1.KRShaped(resource)
+
+			PreProcessReconcile(context.Background(), krShape)
+
+			if rc := resource.Status.GetCondition(test.expectedTopLevelCondition); rc.Status != "Unknown" {
+				t.Errorf("Expected unchanged ready status got=%s want=Unknown", rc.Status)
+			}
+		})
+	}
+}
+
+func TestPostProcessReconcileBumpsGeneration(t *testing.T) {
+	resource := makeResource("Ready")
+
+	krShape := duckv1.KRShaped(resource)
+	PostProcessReconcile(context.Background(), krShape)
+
+	if resource.Status.ObservedGeneration != resource.Generation {
+		t.Errorf("Expected observed generation bump got=%d want=%d", resource.Status.ObservedGeneration, resource.Generation)
+	}
+
+	if krShape.GetStatus().ObservedGeneration != krShape.GetObjectMeta().GetGeneration() {
+		t.Errorf("Expected observed generation bump got=%d want=%d", resource.Status.ObservedGeneration, resource.Generation)
+	}
+}