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skills/forecast-premortem/SKILL.md
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skills/forecast-premortem/SKILL.md
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---
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name: forecast-premortem
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description: Use to stress-test predictions by assuming they failed and working backward to identify why. Invoke when confidence is high (>80% or <20%), need to identify tail risks and unknown unknowns, or want to widen overconfident intervals. Use when user mentions premortem, backcasting, what could go wrong, stress test, or black swans.
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---
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# Forecast Pre-Mortem
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## Table of Contents
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- [What is a Forecast Pre-Mortem?](#what-is-a-forecast-pre-mortem)
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- [When to Use This Skill](#when-to-use-this-skill)
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- [Interactive Menu](#interactive-menu)
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- [Quick Reference](#quick-reference)
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- [Resource Files](#resource-files)
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---
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## What is a Forecast Pre-Mortem?
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A **forecast pre-mortem** is a stress-testing technique where you assume your prediction has already failed and work backward to construct the history of how it failed. This reveals blind spots, tail risks, and overconfidence.
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**Core Principle:** Invert the problem. Don't ask "Will this succeed?" Ask "It has failed - why?"
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**Why It Matters:**
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- Defeats overconfidence by forcing you to imagine failure
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- Identifies specific failure modes you hadn't considered
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- Transforms vague doubt into concrete risk variables
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- Widens confidence intervals appropriately
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- Surfaces "unknown unknowns"
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**Origin:** Gary Klein's "premortem" technique, adapted for probabilistic forecasting
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---
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## When to Use This Skill
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Use this skill when:
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- **High confidence** (>80% or <20%) - Most likely to be overconfident
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- **Feeling certain** - Certainty is a red flag in forecasting
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- **Prediction is important** - Stakes are high, need robustness
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- **After inside view analysis** - Used specific details, might have missed big picture
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- **Before finalizing forecast** - Last check before committing
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Do NOT use when:
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- Confidence already low (~50%) - You're already uncertain
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- Trivial low-stakes prediction - Not worth the time
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- Pure base rate forecasting - Premortem is for inside view adjustments
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---
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## Interactive Menu
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**What would you like to do?**
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### Core Workflows
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**1. [Run a Failure Premortem](#1-run-a-failure-premortem)** - Assume prediction failed, explain why
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**2. [Run a Success Premortem](#2-run-a-success-premortem)** - For pessimistic predictions (<20%)
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**3. [Dragonfly Eye Perspective](#3-dragonfly-eye-perspective)** - View failure through multiple lenses
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**4. [Identify Tail Risks](#4-identify-tail-risks)** - Find black swans and unknown unknowns
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**5. [Adjust Confidence Intervals](#5-adjust-confidence-intervals)** - Quantify the adjustment
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**6. [Learn the Framework](#6-learn-the-framework)** - Deep dive into methodology
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**7. Exit** - Return to main forecasting workflow
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---
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## 1. Run a Failure Premortem
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**Let's stress-test your prediction by imagining it has failed.**
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```
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Failure Premortem Progress:
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- [ ] Step 1: State the prediction and current confidence
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- [ ] Step 2: Time travel to failure
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- [ ] Step 3: Write the history of failure
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- [ ] Step 4: Identify concrete failure modes
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- [ ] Step 5: Assess plausibility and adjust
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```
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### Step 1: State the prediction and current confidence
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**Tell me:**
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1. What are you predicting?
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2. What's your current probability?
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3. What's your confidence interval?
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**Example:** "This startup will reach $10M ARR within 2 years" - Probability: 75%, CI: 60-85%
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### Step 2: Time travel to failure
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**The Crystal Ball Exercise:**
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Jump forward to the resolution date. **It is now [resolution date]. The event did NOT happen.** This is a certainty. Do not argue with it.
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**How does it feel?** Surprising? Expected? Shocking? This emotional response tells you about your true confidence.
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### Step 3: Write the history of failure
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**Backcasting Narrative:** Starting from the failure point, work backward in time. Write the story of how we got here.
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**Prompts:**
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- "The headlines that led to this were..."
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- "The first sign of trouble was when..."
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- "In retrospect, we should have known because..."
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- "The critical mistake was..."
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**Frameworks to consider:**
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- **Internal friction:** Team burned out, co-founders fought, execution failed
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- **External shocks:** Regulation changed, competitor launched, market shifted
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- **Structural flaws:** Unit economics didn't work, market too small, tech didn't scale
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- **Black swans:** Pandemic, war, financial crisis, unexpected disruption
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See [Failure Mode Taxonomy](resources/failure-mode-taxonomy.md) for comprehensive categories.
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### Step 4: Identify concrete failure modes
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**Extract specific, actionable failure causes from your narrative.**
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For each failure mode: (1) What happened, (2) Why it caused failure, (3) How likely it is, (4) Early warning signals
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**Example:**
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| Failure Mode | Mechanism | Likelihood | Warning Signals |
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|--------------|-----------|------------|-----------------|
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| Key engineer quit | Lost technical leadership, delayed product | 15% | Declining code commits, complaints |
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| Competitor launched free tier | Destroyed unit economics | 20% | Hiring spree, beta leaks |
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| Regulation passed | Made business model illegal | 5% | Proposed legislation, lobbying |
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### Step 5: Assess plausibility and adjust
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**The Plausibility Test:**
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Ask yourself:
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- **How easy was it to write the failure narrative?**
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- Very easy → Drop confidence by 15-30%
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- Very hard, felt absurd → Confidence was appropriate
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- **How many plausible failure modes did you identify?**
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- 5+ modes each >5% likely → Too much uncertainty for high confidence
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- 1-2 modes, low likelihood → Confidence can stay high
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- **Did you discover any "unknown unknowns"?**
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- Yes, multiple → Widen confidence intervals by 20%
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- No, all known risks → Confidence appropriate
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**Quantitative Method:** Sum the probabilities of failure modes:
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```
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P(failure) = P(mode_1) + P(mode_2) + ... + P(mode_n)
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```
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If this sum is greater than `1 - your_current_probability`, your probability is too high.
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**Example:** Current success: 75% (implied failure: 25%), Sum of failure modes: 40%
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**Conclusion:** Underestimating failure risk by 15%, **Adjusted:** 60% success
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**Next:** Return to [menu](#interactive-menu) or document findings
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---
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## 2. Run a Success Premortem
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**For pessimistic predictions - assume the unlikely success happened.**
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```
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Success Premortem Progress:
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- [ ] Step 1: State pessimistic prediction (<20%)
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- [ ] Step 2: Time travel to success
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- [ ] Step 3: Write the history of success
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- [ ] Step 4: Identify how you could be wrong
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- [ ] Step 5: Assess and adjust upward if needed
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```
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### Step 1: State pessimistic prediction
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**Tell me:** (1) What low-probability event are you predicting? (2) Why is your confidence so low?
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**Example:** "Fusion energy will be commercialized by 2030" - Probability: 10%, Reasoning: Technical challenges too great
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### Step 2: Time travel to success
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**It is now 2030. Fusion energy is commercially available.** This happened. It's real. How?
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### Step 3: Write the history of success
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**Backcasting the unlikely:** What had to happen for this to occur?
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- "The breakthrough came when..."
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- "We were wrong about [assumption] because..."
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- "The key enabler was..."
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- "In retrospect, we underestimated..."
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### Step 4: Identify how you could be wrong
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**Challenge your pessimism:**
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- Are you anchoring too heavily on current constraints?
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- Are you underestimating exponential progress?
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- Are you ignoring parallel approaches?
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- Are you biased by past failures?
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### Step 5: Assess and adjust upward if needed
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If success narrative was surprisingly plausible, increase probability.
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**Next:** Return to [menu](#interactive-menu)
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---
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## 3. Dragonfly Eye Perspective
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**View the failure through multiple conflicting perspectives.**
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The dragonfly has compound eyes that see from many angles simultaneously. We simulate this by adopting radically different viewpoints.
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```
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Dragonfly Eye Progress:
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- [ ] Step 1: The Skeptic (why this will definitely fail)
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- [ ] Step 2: The Fanatic (why failure is impossible)
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- [ ] Step 3: The Disinterested Observer (neutral analysis)
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- [ ] Step 4: Synthesize perspectives
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- [ ] Step 5: Extract robust failure modes
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```
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### Step 1: The Skeptic
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**Channel the harshest critic.** You are a short-seller, a competitor, a pessimist. Why will this DEFINITELY fail?
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**Be extreme:** Assume worst case, highlight every flaw, no charity, no benefit of doubt
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**Output:** List of failure reasons from skeptical view
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### Step 2: The Fanatic
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**Channel the strongest believer.** You are the founder's mother, a zealot, an optimist. Why is failure IMPOSSIBLE?
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**Be extreme:** Assume best case, highlight every strength, maximum charity and optimism
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**Output:** List of success reasons from optimistic view
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### Step 3: The Disinterested Observer
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**Channel a neutral analyst.** You have no stake in the outcome. You're running a simulation, analyzing data dispassionately.
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**Be analytical:** No emotional investment, pure statistical reasoning, reference class thinking
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**Output:** Balanced probability estimate with reasoning
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### Step 4: Synthesize perspectives
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**Find the overlap:** Which failure modes appeared in ALL THREE perspectives?
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- Skeptic mentioned it
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- Even fanatic couldn't dismiss it
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- Observer identified it statistically
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**These are your robust failure modes** - the ones most likely to actually happen.
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### Step 5: Extract robust failure modes
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**The synthesis:**
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| Failure Mode | Skeptic | Fanatic | Observer | Robust? |
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|--------------|---------|---------|----------|---------|
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| Market too small | Definitely | Debatable | Base rate suggests yes | YES |
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| Execution risk | Definitely | No way | 50/50 | Maybe |
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| Tech won't scale | Definitely | Already solved | Unknown | Investigate |
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Focus adjustment on the **robust** failures that survived all perspectives.
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**Next:** Return to [menu](#interactive-menu)
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---
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## 4. Identify Tail Risks
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**Find the black swans and unknown unknowns.**
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```
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Tail Risk Identification Progress:
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- [ ] Step 1: Define what counts as "tail risk"
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- [ ] Step 2: Systematic enumeration
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- [ ] Step 3: Impact × Probability matrix
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- [ ] Step 4: Set kill criteria
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- [ ] Step 5: Monitor signposts
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```
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### Step 1: Define what counts as "tail risk"
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**Criteria:** Low probability (<5%), High impact (would completely change outcome), Outside normal planning, Often exogenous shocks
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**Examples:** Pandemic, war, financial crisis, regulatory ban, key person death, natural disaster, technological disruption
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### Step 2: Systematic enumeration
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**Use the PESTLE framework for comprehensive coverage:**
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- **Political:** Elections, coups, policy changes, geopolitical shifts
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- **Economic:** Recession, inflation, currency crisis, market crash
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- **Social:** Cultural shifts, demographic changes, social movements
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- **Technological:** Breakthrough inventions, disruptions, cyber attacks
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- **Legal:** New regulations, lawsuits, IP challenges, compliance changes
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- **Environmental:** Climate events, pandemics, natural disasters
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For each category, ask: "What low-probability event would kill this prediction?"
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See [Failure Mode Taxonomy](resources/failure-mode-taxonomy.md) for detailed categories.
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### Step 3: Impact × Probability matrix
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**Plot your tail risks:**
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```
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High Impact
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│
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│ [Pandemic] [Key Founder Dies]
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│
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│
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│ [Recession] [Competitor Emerges]
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│
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└─────────────────────────────────────→ Probability
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Low High
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```
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**Focus on:** High impact, even if very low probability
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### Step 4: Set kill criteria
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**For each major tail risk, define the "kill criterion":**
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**Format:** "If [event X] happens, probability drops to [Y]%"
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**Examples:**
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- "If FDA rejects our drug, probability drops to 5%"
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- "If key engineer quits, probability drops to 30%"
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- "If competitor launches free tier, probability drops to 20%"
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- "If regulation passes, probability drops to 0%"
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**Why this matters:** You now have clear indicators to watch
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### Step 5: Monitor signposts
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**For each kill criterion, identify early warning signals:**
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| Kill Criterion | Warning Signals | Check Frequency |
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|----------------|----------------|-----------------|
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| FDA rejection | Phase 2 trial results, FDA feedback | Monthly |
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| Engineer quit | Code velocity, satisfaction surveys | Weekly |
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| Competitor launch | Hiring spree, beta leaks, patents | Monthly |
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| Regulation | Proposed bills, lobbying, hearings | Quarterly |
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**Setup monitoring:** Calendar reminders, news alerts, automated tracking
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**Next:** Return to [menu](#interactive-menu)
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---
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## 5. Adjust Confidence Intervals
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**Quantify how much the premortem should change your bounds.**
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```
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Confidence Interval Adjustment Progress:
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- [ ] Step 1: State current CI
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- [ ] Step 2: Evaluate premortem findings
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- [ ] Step 3: Calculate width adjustment
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- [ ] Step 4: Set new bounds
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- [ ] Step 5: Document reasoning
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```
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### Step 1: State current CI
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**Current confidence interval:** Lower bound: __%, Upper bound: __%, Width: ___ percentage points
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### Step 2: Evaluate premortem findings
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**Score your premortem on these dimensions (1-5 each):**
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1. **Narrative plausibility** - 1 = Failure felt absurd, 5 = Failure felt inevitable
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2. **Number of failure modes** - 1 = Only 1-2 unlikely modes, 5 = 5+ plausible modes
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3. **Unknown unknowns discovered** - 1 = No surprises, all known, 5 = Many blind spots revealed
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4. **Dragonfly synthesis** - 1 = Perspectives diverged completely, 5 = All agreed on failure modes
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**Total score:** __ / 20
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### Step 3: Calculate width adjustment
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**Adjustment formula:**
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```
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Width multiplier = 1 + (Score / 20)
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```
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**Examples:**
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- Score = 4/20 → Multiplier = 1.2 → Widen CI by 20%
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- Score = 10/20 → Multiplier = 1.5 → Widen CI by 50%
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- Score = 16/20 → Multiplier = 1.8 → Widen CI by 80%
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**Current width:** ___ points, **Adjusted width:** Current × Multiplier = ___ points
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### Step 4: Set new bounds
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**Method: Symmetric widening around current estimate**
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```
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New lower = Current estimate - (Adjusted width / 2)
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New upper = Current estimate + (Adjusted width / 2)
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```
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**Example:** Current: 70%, CI: 60-80% (width = 20), Score: 12/20, Multiplier: 1.6, New width: 32, **New CI: 54-86%**
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### Step 5: Document reasoning
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**Record:** (1) What failure modes drove the adjustment, (2) Which perspective was most revealing, (3) What unknown unknowns were discovered, (4) What monitoring you'll do going forward
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**Next:** Return to [menu](#interactive-menu)
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---
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## 6. Learn the Framework
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**Deep dive into the methodology.**
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### Resource Files
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📄 **[Premortem Principles](resources/premortem-principles.md)** - Why humans are overconfident, hindsight bias and outcome bias, the power of inversion, research on premortem effectiveness
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📄 **[Backcasting Method](resources/backcasting-method.md)** - Structured backcasting process, temporal reasoning techniques, causal chain construction, narrative vs quantitative backcasting
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📄 **[Failure Mode Taxonomy](resources/failure-mode-taxonomy.md)** - Comprehensive failure categories, internal vs external failures, preventable vs unpreventable, PESTLE framework for tail risks, kill criteria templates
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**Next:** Return to [menu](#interactive-menu)
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---
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## Quick Reference
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### The Premortem Commandments
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1. **Assume failure is certain** - Don't debate whether, debate why
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2. **Be specific** - Vague risks don't help; concrete mechanisms do
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3. **Use multiple perspectives** - Skeptic, fanatic, observer
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4. **Quantify failure modes** - Estimate probability of each
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5. **Set kill criteria** - Know what would change your mind
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6. **Monitor signposts** - Track early warning signals
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7. **Widen CIs** - If premortem was too easy, you're overconfident
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### One-Sentence Summary
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> Assume your prediction has failed, write the history of how, and use that to identify blind spots and adjust confidence.
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### Integration with Other Skills
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- **Before:** Use after inside view analysis (you need something to stress-test)
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- **After:** Use `scout-mindset-bias-check` to validate adjustments
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- **Companion:** Works with `bayesian-reasoning-calibration` for quantitative updates
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- **Feeds into:** Monitoring systems and adaptive forecasting
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---
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## Resource Files
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📁 **resources/**
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- [premortem-principles.md](resources/premortem-principles.md) - Theory and research
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- [backcasting-method.md](resources/backcasting-method.md) - Temporal reasoning process
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- [failure-mode-taxonomy.md](resources/failure-mode-taxonomy.md) - Comprehensive failure categories
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---
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**Ready to start? Choose a number from the [menu](#interactive-menu) above.**
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Reference in New Issue
Block a user