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skills/forecast-premortem/resources/backcasting-method.md
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skills/forecast-premortem/resources/backcasting-method.md
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# Backcasting Method
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## Temporal Reasoning from Future to Present
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**Backcasting** is the practice of starting from a future state and working backward to identify the path that led there.
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**Contrast with forecasting:**
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- **Forecasting:** Present → Future (What will happen?)
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- **Backcasting:** Future → Present (How did this happen?)
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---
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## The Structured Backcasting Process
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### Phase 1: Define the Future State
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**Step 1.1: Set the resolution date**
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- When will you know if the prediction came true?
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- Be specific: "December 31, 2025"
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**Step 1.2: State the outcome as a certainty**
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- Don't say "might fail" or "probably fails"
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- Say "HAS failed" or "DID fail"
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- Use past tense
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**Step 1.3: Emotional calibration**
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- How surprising is this outcome?
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- Shocking → You were very overconfident
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- Expected → Appropriate confidence
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- Inevitable → You were underconfident
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---
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### Phase 2: Construct the Timeline
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**Step 2.1: Work backward in time chunks**
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Start at resolution date, work backward in intervals:
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**For 2-year prediction:**
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- Resolution date (final failure)
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- 6 months before (late-stage warning)
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- 1 year before (mid-stage problems)
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- 18 months before (early signs)
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- Start date (initial conditions)
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**For 6-month prediction:**
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- Resolution date
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- 1 month before
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- 3 months before
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- Start date
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---
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**Step 2.2: Fill in each time chunk**
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For each period, ask:
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- What was happening at this time?
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- What decisions were made?
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- What external events occurred?
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- What warning signs appeared?
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**Template:**
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```
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[Date]: [Event that occurred]
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Effect: [How this contributed to failure]
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Warning sign: [What would have indicated this was coming]
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```
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---
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### Phase 3: Identify Causal Chains
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**Step 3.1: Map the causal structure**
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```
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Initial condition → Trigger event → Cascade → Failure
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```
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**Example:**
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```
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Team overworked → Key engineer quit → Lost 3 months → Missed deadline → Funding fell through → Failure
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```
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---
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**Step 3.2: Classify causes**
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| Type | Description | Example |
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|------|-------------|---------|
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| **Necessary** | Without this, failure wouldn't happen | Regulatory ban |
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| **Sufficient** | This alone causes failure | Founder death |
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| **Contributing** | Makes failure more likely | Market downturn |
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| **Catalytic** | Speeds up inevitable failure | Competitor launch |
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---
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**Step 3.3: Find the "brittle point"**
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**Question:** Which single event, if prevented, would have avoided failure?
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This is your **critical dependency** and highest-priority monitoring target.
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---
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### Phase 4: Narrative Construction
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**Step 4.1: Write the headlines**
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Imagine you're a journalist covering this failure. What headlines mark the timeline?
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**Example:**
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- "Startup X raises $10M Series A" (12 months before)
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- "Startup X faces regulatory scrutiny" (9 months before)
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- "Key executive departs Startup X" (6 months before)
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- "Startup X misses Q3 targets" (3 months before)
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- "Startup X shuts down, cites regulatory pressure" (resolution)
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---
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**Step 4.2: Write the obituary**
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"Startup X failed because..."
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Complete this sentence with a single, clear causal narrative. Force yourself to be concise.
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**Good:**
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"Startup X failed because regulatory uncertainty froze customer adoption, leading to missed revenue targets and inability to raise Series B."
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**Bad (too vague):**
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"Startup X failed because of various challenges."
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---
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**Step 4.3: The insider vs outsider narrative**
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**Insider view:** What would the founders say?
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- "We underestimated regulatory risk"
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- "We hired too slowly"
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- "We ran out of runway"
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**Outsider view:** What would analysts say?
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- "82% of startups in this space fail due to regulation"
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- "Classic execution failure"
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- "Unit economics never made sense"
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**Compare:** Does your insider narrative match outsider base rates?
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---
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## Narrative vs Quantitative Backcasting
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### Narrative Backcasting
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**Strengths:**
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- Rich, detailed stories
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- Reveals unknown unknowns
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- Good for complex systems
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**Weaknesses:**
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- Subject to narrative fallacy
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- Can feel too "real" and bias you
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- Hard to quantify
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**Use when:**
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- Complex, multi-causal failures
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- Human/organizational factors dominate
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- Need to surface blind spots
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---
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### Quantitative Backcasting
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**Strengths:**
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- Precise probability estimates
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- Aggregates multiple failure modes
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- Less subject to bias
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**Weaknesses:**
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- Requires data
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- Can miss qualitative factors
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- May feel mechanical
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**Use when:**
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- Statistical models exist
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- Multiple independent failure modes
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- Need to calculate confidence intervals
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---
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## Advanced Technique: Multiple Backcast Paths
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### Generate 3-5 Different Failure Narratives
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Instead of one story, create multiple:
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**Path 1: Internal Execution Failure**
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- Team burned out
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- Product quality suffered
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- Customers churned
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- Revenue missed
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- Funding dried up
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**Path 2: External Market Shift**
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- Competitor launched free tier
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- Market commoditized
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- Margins compressed
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- Unit economics broke
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- Shutdown
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**Path 3: Regulatory Kill**
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- New law passed
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- Business model illegal
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- Forced shutdown
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**Path 4: Black Swan**
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- Pandemic
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- Supply chain collapse
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- Force majeure
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---
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### Aggregate the Paths
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**Calculate probability for each path:**
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- Path 1 (Internal): 40%
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- Path 2 (Market): 30%
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- Path 3 (Regulatory): 20%
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- Path 4 (Black Swan): 10%
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**Total failure probability:** 100% (since we assumed failure)
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**Insight:** But in reality, your prediction gives 25% failure. This means you're underestimating by 75 percentage points, OR these paths are not independent.
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**Adjustment:**
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If paths are partially overlapping (e.g., internal failure AND market shift), use:
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```
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P(A or B) = P(A) + P(B) - P(A and B)
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```
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---
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## Temporal Reasoning Techniques
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### The "Newspaper Test"
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**Method:**
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For each time period, imagine you're reading a newspaper from that date.
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**What headlines would you see?**
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- Macro news (economy, politics, technology)
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- Industry news (competitors, regulations, trends)
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- Company news (your specific case)
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**This forces you to think about:**
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- External context, not just internal execution
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- Leading indicators, not just lagging outcomes
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---
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### The "Retrospective Interview"
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**Method:**
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Imagine you're interviewing someone 1 year after failure.
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**Questions:**
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- "Looking back, when did you first know this was in trouble?"
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- "What was the moment of no return?"
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- "If you could go back, what would you change?"
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- "What signs did you ignore?"
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**This reveals:**
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- Early warning signals you should monitor
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- Critical decision points
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- Hindsight that can become foresight
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---
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### The "Parallel Universe" Technique
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**Method:**
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Create two timelines:
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**Timeline A: Success**
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What had to happen for success?
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**Timeline B: Failure**
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What happened instead?
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**Divergence point:**
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Where do the timelines split? That's your critical uncertainty.
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---
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## Common Backcasting Mistakes
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### Mistake 1: Being Too Vague
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**Bad:** "Things went wrong and it failed."
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**Good:** "Q3 2024: Competitor X launched free tier. Q4 2024: We lost 30% of customers. Q1 2025: Revenue dropped below runway. Q2 2025: Failed to raise Series B. Q3 2025: Shutdown."
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**Fix:** Force yourself to name specific events and dates.
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---
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### Mistake 2: Only Internal Causes
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**Bad:** "We executed poorly."
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**Good:** "We executed poorly AND market shifted AND regulation changed."
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**Fix:** Use PESTLE framework to ensure external factors are considered.
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---
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### Mistake 3: Hindsight Bias
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**Bad:** "It was always obvious this would fail."
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**Good:** "In retrospect, these warning signs were present, but at the time they were ambiguous."
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**Fix:** Acknowledge that foresight ≠ hindsight. Don't pretend everything was obvious.
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---
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### Mistake 4: Single-Cause Narratives
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**Bad:** "Failed because of regulation."
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**Good:** "Regulation was necessary but not sufficient. Also needed internal execution failure and market downturn to actually fail."
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**Fix:** Multi-causal explanations are almost always more accurate.
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---
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## Integration with Forecasting
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### How Backcasting Improves Forecasts
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**Before Backcasting:**
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- Forecast: 80% success
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- Reasoning: Strong team, good market, solid plan
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- Confidence interval: 70-90%
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**After Backcasting:**
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- Identified failure modes: Regulatory (20%), Execution (15%), Market (10%), Black Swan (5%)
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- Total failure probability from backcasting: 50%
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- **Realized:** Current 80% is too high
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- **Adjusted forecast:** 60% success
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- **Adjusted CI:** 45-75% (wider, reflecting uncertainty)
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---
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## Practical Workflow
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### Quick Backcast (15 minutes)
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1. **State outcome:** "It failed."
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2. **One-sentence cause:** "Failed because..."
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3. **Three key events:** Timeline points
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4. **Probability check:** Does failure narrative feel >20% likely?
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5. **Adjust:** If yes, lower confidence.
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---
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### Rigorous Backcast (60 minutes)
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1. Define future state and resolution date
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2. Create timeline working backward in chunks
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3. Write detailed narrative for each period
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4. Identify causal chains (necessary, sufficient, contributing)
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5. Generate 3-5 alternative failure paths
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6. Estimate probability of each path
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7. Aggregate and compare to current forecast
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8. Adjust probability and confidence intervals
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9. Set monitoring signposts
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10. Document assumptions
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---
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**Return to:** [Main Skill](../SKILL.md#interactive-menu)
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497
skills/forecast-premortem/resources/failure-mode-taxonomy.md
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skills/forecast-premortem/resources/failure-mode-taxonomy.md
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# Failure Mode Taxonomy
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## Comprehensive Categories for Systematic Risk Identification
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---
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## The Two Primary Dimensions
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### 1. Internal vs External
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**Internal failures:**
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- Under your control (at least partially)
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- Organizational, execution, resource-based
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- Can be prevented with better planning
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**External failures:**
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- Outside your control
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- Market, regulatory, competitive, acts of God
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- Can only be mitigated, not prevented
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---
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### 2. Preventable vs Unpreventable
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**Preventable:**
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- Known risk with available mitigation
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- Happens due to negligence or oversight
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- "We should have seen this coming"
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**Unpreventable (Black Swans):**
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- Unknown unknowns
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- No reasonable way to anticipate
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- "Nobody could have predicted this"
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---
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## Four Quadrants
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| | **Preventable** | **Unpreventable** |
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|---|---|---|
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| **Internal** | Execution failure, bad hiring | Key person illness, burnout |
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| **External** | Competitor launch (foreseeable) | Pandemic, war, black swan |
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**Premortem focus:** Mostly on **preventable failures** (both internal and external)
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---
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## Internal Failure Modes
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### 1. Execution Failures
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**Team/People:**
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- Key person quits
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- Co-founder conflict
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- Team burnout
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- Cultural toxicity
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- Skills gap
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- Hiring too slow/fast
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- Onboarding failure
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**Process:**
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- Missed deadlines
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- Scope creep
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- Poor prioritization
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- Communication breakdown
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- Decision paralysis
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- Process overhead
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- Lack of process
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**Product/Technical:**
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- Product quality issues
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- Technical debt collapse
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- Scalability failures
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- Security breach
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- Data loss
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- Integration failures
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- Performance degradation
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---
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### 2. Resource Failures
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**Financial:**
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- Ran out of money (runway)
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- Failed to raise funding
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- Revenue shortfall
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- Cost overruns
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- Budget mismanagement
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- Fraud/embezzlement
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- Cash flow crisis
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**Time:**
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- Too slow to market
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- Missed window of opportunity
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- Critical path delays
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- Underestimated timeline
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- Overcommitted resources
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**Knowledge/IP:**
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- Lost key knowledge (person left)
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- IP stolen
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- Failed to protect IP
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- Technological obsolescence
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- R&D dead ends
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---
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### 3. Strategic Failures
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**Market fit:**
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- Built wrong product
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- Solved non-problem
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- Target market too small
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- Pricing wrong
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- Value prop unclear
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- Positioning failure
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**Business model:**
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- Unit economics don't work
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- CAC > LTV
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- Churn too high
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- Margins too thin
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- Revenue model broken
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- Unsustainable burn rate
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**Competitive:**
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- Differentiation lost
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- Commoditization
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- Underestimated competition
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- Failed to defend moat
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- Technology leapfrogged
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---
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## External Failure Modes
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### 1. Market Failures
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**Demand side:**
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- Market smaller than expected
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- Adoption slower than expected
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- Customer behavior changed
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- Willingness to pay dropped
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- Switching costs too high
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**Supply side:**
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- Input costs increased
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- Suppliers failed
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- Supply chain disruption
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- Talent shortage
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- Infrastructure unavailable
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**Market structure:**
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- Market consolidated
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- Winner-take-all dynamics
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- Network effects favored competitor
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- Platform risk (dependency on another company)
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---
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### 2. Competitive Failures
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**Direct competition:**
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- Incumbent responded aggressively
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- New entrant with more capital
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- Competitor launched superior product
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- Price war
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- Competitor acquired key talent
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**Ecosystem:**
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- Complementary product failed
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- Partnership fell through
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- Distribution channel cut off
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- Platform changed terms
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- Ecosystem shifted away
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---
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### 3. Regulatory/Legal Failures
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**Regulation:**
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- New law banned business model
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- Compliance costs too high
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- Licensing denied
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- Government investigation
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- Regulatory capture by incumbents
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**Legal:**
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- Lawsuit (IP, employment, customer)
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- Contract breach
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- Fraud allegations
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- Criminal charges
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- Bankruptcy proceedings
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---
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### 4. Macroeconomic Failures
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**Economic:**
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- Recession
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- Inflation
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- Interest rate spike
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- Currency fluctuation
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||||
- Credit crunch
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||||
- Stock market crash
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||||
|
||||
**Geopolitical:**
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||||
- War
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- Trade restrictions
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- Sanctions
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||||
- Political instability
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||||
- Coup/revolution
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||||
- Expropriation
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||||
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||||
---
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### 5. Technological Failures
|
||||
|
||||
**Disruption:**
|
||||
- New technology made product obsolete
|
||||
- Paradigm shift (e.g., mobile, cloud, AI)
|
||||
- Standard changed
|
||||
- Interoperability broke
|
||||
|
||||
**Infrastructure:**
|
||||
- Cloud provider outage
|
||||
- Internet backbone failure
|
||||
- Power grid failure
|
||||
- Critical dependency failed
|
||||
|
||||
---
|
||||
|
||||
### 6. Social/Cultural Failures
|
||||
|
||||
**Public opinion:**
|
||||
- Reputation crisis
|
||||
- Boycott
|
||||
- Social media backlash
|
||||
- Cultural shift away from product
|
||||
- Ethical concerns raised
|
||||
|
||||
**Demographics:**
|
||||
- Target demographic shrunk
|
||||
- Generational shift
|
||||
- Migration patterns changed
|
||||
- Urbanization/de-urbanization
|
||||
|
||||
---
|
||||
|
||||
### 7. Environmental/Health Failures
|
||||
|
||||
**Natural disasters:**
|
||||
- Earthquake, hurricane, flood
|
||||
- Wildfire
|
||||
- Drought
|
||||
- Extreme weather
|
||||
|
||||
**Health:**
|
||||
- Pandemic
|
||||
- Endemic disease outbreak
|
||||
- Health regulation
|
||||
- Contamination/recall
|
||||
|
||||
---
|
||||
|
||||
## Black Swans (Unpreventable External)
|
||||
|
||||
### Characteristics
|
||||
- Extreme impact
|
||||
- Retrospectively predictable, prospectively invisible
|
||||
- Outside normal expectations
|
||||
|
||||
### Examples
|
||||
- 9/11 terrorist attacks
|
||||
- COVID-19 pandemic
|
||||
- 2008 financial crisis
|
||||
- Fukushima disaster
|
||||
- Technological singularity
|
||||
- Asteroid impact
|
||||
|
||||
### How to Handle
|
||||
**Can't prevent, can:**
|
||||
1. **Increase robustness** - Survive the shock
|
||||
2. **Increase antifragility** - Benefit from volatility
|
||||
3. **Widen confidence intervals** - Acknowledge unknown unknowns
|
||||
4. **Plan for "unspecified bad thing"** - Generic resilience
|
||||
|
||||
---
|
||||
|
||||
## PESTLE Framework for Systematic Enumeration
|
||||
|
||||
Use this checklist to ensure comprehensive coverage:
|
||||
|
||||
### Political
|
||||
- [ ] Elections/regime change
|
||||
- [ ] Policy shifts
|
||||
- [ ] Government instability
|
||||
- [ ] Geopolitical conflict
|
||||
- [ ] Trade agreements
|
||||
- [ ] Lobbying success/failure
|
||||
|
||||
### Economic
|
||||
- [ ] Recession/depression
|
||||
- [ ] Inflation/deflation
|
||||
- [ ] Interest rates
|
||||
- [ ] Currency fluctuations
|
||||
- [ ] Market bubbles/crashes
|
||||
- [ ] Unemployment
|
||||
|
||||
### Social
|
||||
- [ ] Demographic shifts
|
||||
- [ ] Cultural trends
|
||||
- [ ] Public opinion
|
||||
- [ ] Social movements
|
||||
- [ ] Consumer behavior change
|
||||
- [ ] Generational values
|
||||
|
||||
### Technological
|
||||
- [ ] Disruptive innovation
|
||||
- [ ] Obsolescence
|
||||
- [ ] Cyber attacks
|
||||
- [ ] Infrastructure failure
|
||||
- [ ] Standards change
|
||||
- [ ] Technology convergence
|
||||
|
||||
### Legal
|
||||
- [ ] New regulations
|
||||
- [ ] Lawsuits
|
||||
- [ ] IP challenges
|
||||
- [ ] Compliance requirements
|
||||
- [ ] Contract disputes
|
||||
- [ ] Liability exposure
|
||||
|
||||
### Environmental
|
||||
- [ ] Climate change
|
||||
- [ ] Natural disasters
|
||||
- [ ] Pandemics
|
||||
- [ ] Resource scarcity
|
||||
- [ ] Pollution/contamination
|
||||
- [ ] Sustainability pressures
|
||||
|
||||
---
|
||||
|
||||
## Kill Criteria Templates
|
||||
|
||||
### What is a Kill Criterion?
|
||||
|
||||
**Definition:** A specific event that, if it occurs, drastically changes your probability.
|
||||
|
||||
**Format:** "If [event], then probability drops to [X%]"
|
||||
|
||||
---
|
||||
|
||||
### Template Library
|
||||
|
||||
**Regulatory kill criteria:**
|
||||
```
|
||||
If [specific regulation] passes, probability drops to [X]%
|
||||
If FDA rejects in Phase [N], probability drops to [X]%
|
||||
If government bans [activity], probability drops to 0%
|
||||
```
|
||||
|
||||
**Competitive kill criteria:**
|
||||
```
|
||||
If [competitor] launches [feature], probability drops to [X]%
|
||||
If incumbent drops price by [X]%, probability drops to [X]%
|
||||
If [big tech co] enters market, probability drops to [X]%
|
||||
```
|
||||
|
||||
**Financial kill criteria:**
|
||||
```
|
||||
If we miss Q[N] revenue target by >20%, probability drops to [X]%
|
||||
If we can't raise Series [X] by [date], probability drops to [X]%
|
||||
If burn rate exceeds $[X]/month, probability drops to [X]%
|
||||
```
|
||||
|
||||
**Team kill criteria:**
|
||||
```
|
||||
If [key person] leaves, probability drops to [X]%
|
||||
If we can't hire [critical role] by [date], probability drops to [X]%
|
||||
If team size drops below [X], probability drops to [X]%
|
||||
```
|
||||
|
||||
**Product kill criteria:**
|
||||
```
|
||||
If we can't ship by [date], probability drops to [X]%
|
||||
If NPS drops below [X], probability drops to [X]%
|
||||
If churn exceeds [X]%, probability drops to [X]%
|
||||
```
|
||||
|
||||
**Market kill criteria:**
|
||||
```
|
||||
If TAM shrinks below $[X], probability drops to [X]%
|
||||
If adoption rate < [X]% by [date], probability drops to [X]%
|
||||
If market shifts to [substitute], probability drops to [X]%
|
||||
```
|
||||
|
||||
**Macro kill criteria:**
|
||||
```
|
||||
If recession occurs, probability drops to [X]%
|
||||
If interest rates exceed [X]%, probability drops to [X]%
|
||||
If war breaks out in [region], probability drops to [X]%
|
||||
```
|
||||
|
||||
---
|
||||
|
||||
## Failure Mode Probability Estimation
|
||||
|
||||
### Quick Heuristics
|
||||
|
||||
**For each failure mode, estimate:**
|
||||
|
||||
**Very Low (1-5%):**
|
||||
- Black swans
|
||||
- Never happened in this industry
|
||||
- Requires multiple unlikely events
|
||||
|
||||
**Low (5-15%):**
|
||||
- Happened before but rare
|
||||
- Strong mitigations in place
|
||||
- Early warning systems exist
|
||||
|
||||
**Medium (15-35%):**
|
||||
- Common failure mode in industry
|
||||
- Moderate mitigations
|
||||
- Uncertain effectiveness
|
||||
|
||||
**High (35-70%):**
|
||||
- Very common failure mode
|
||||
- Weak mitigations
|
||||
- History of this happening
|
||||
|
||||
**Very High (>70%):**
|
||||
- Almost certain to occur
|
||||
- No effective mitigation
|
||||
- Base rate is very high
|
||||
|
||||
---
|
||||
|
||||
### Aggregation
|
||||
|
||||
**If failure modes are independent:**
|
||||
```
|
||||
P(any failure) = 1 - ∏(1 - P(failure_i))
|
||||
```
|
||||
|
||||
**Example:**
|
||||
- P(regulatory) = 20%
|
||||
- P(competitive) = 30%
|
||||
- P(execution) = 25%
|
||||
|
||||
```
|
||||
P(any) = 1 - (0.8 × 0.7 × 0.75) = 1 - 0.42 = 58%
|
||||
```
|
||||
|
||||
**If failure modes are dependent:**
|
||||
Use Venn diagram logic or conditional probabilities (more complex).
|
||||
|
||||
---
|
||||
|
||||
## Monitoring and Signposts
|
||||
|
||||
### Early Warning Signals
|
||||
|
||||
For each major failure mode, identify **leading indicators:**
|
||||
|
||||
**Example: "Key engineer will quit"**
|
||||
|
||||
**Leading indicators (6-12 months before):**
|
||||
- Code commit frequency drops
|
||||
- Participation in meetings declines
|
||||
- Starts saying "no" more often
|
||||
- Takes more sick days
|
||||
- LinkedIn profile updated
|
||||
- Asks about vesting schedule
|
||||
|
||||
**Action:** Monitor these monthly, set alerts
|
||||
|
||||
---
|
||||
|
||||
### Monitoring Cadence
|
||||
|
||||
| Risk Level | Check Frequency |
|
||||
|------------|----------------|
|
||||
| Very High (>50%) | Weekly |
|
||||
| High (25-50%) | Bi-weekly |
|
||||
| Medium (10-25%) | Monthly |
|
||||
| Low (5-10%) | Quarterly |
|
||||
| Very Low (<5%) | Annually |
|
||||
|
||||
---
|
||||
|
||||
## Practical Usage
|
||||
|
||||
**Step-by-Step:** (1) Choose categories (Internal/External, PESTLE), (2) Brainstorm 10-15 failure modes, (3) Estimate probability for each, (4) Aggregate, (5) Compare to forecast, (6) Identify top 3-5 risks, (7) Set kill criteria, (8) Define monitoring signposts, (9) Set calendar reminders based on risk level.
|
||||
|
||||
**Return to:** [Main Skill](../SKILL.md#interactive-menu)
|
||||
292
skills/forecast-premortem/resources/premortem-principles.md
Normal file
292
skills/forecast-premortem/resources/premortem-principles.md
Normal file
@@ -0,0 +1,292 @@
|
||||
# Premortem Principles
|
||||
|
||||
## The Psychology of Overconfidence
|
||||
|
||||
### Why We're Systematically Overconfident
|
||||
|
||||
**The Planning Fallacy:**
|
||||
- We focus on best-case scenarios
|
||||
- We ignore historical delays and failures
|
||||
- We assume "our case is different"
|
||||
- We underestimate Murphy's Law
|
||||
|
||||
**Research:**
|
||||
- 90% of projects run over budget
|
||||
- 70% of projects run late
|
||||
- Yet 80% of project managers predict on-time completion
|
||||
|
||||
**The fix:** Premortem forces you to imagine failure has already happened.
|
||||
|
||||
---
|
||||
|
||||
## Hindsight Bias
|
||||
|
||||
### The "I Knew It All Along" Effect
|
||||
|
||||
**What it is:**
|
||||
After an outcome occurs, we believe we "always knew" it would happen.
|
||||
|
||||
**Example:**
|
||||
- Before 2008 crash: "Housing is safe"
|
||||
- After 2008 crash: "The signs were obvious"
|
||||
|
||||
**Problem for forecasting:**
|
||||
If we think outcomes were predictable in hindsight, we'll be overconfident going forward.
|
||||
|
||||
**The premortem fix:**
|
||||
By forcing yourself into "hindsight mode" BEFORE the outcome, you:
|
||||
1. Generate the warning signs you would have seen
|
||||
2. Realize how many ways things could go wrong
|
||||
3. Reduce overconfidence
|
||||
|
||||
---
|
||||
|
||||
## The Power of Inversion
|
||||
|
||||
### Solving Problems Backward
|
||||
|
||||
**Charlie Munger:**
|
||||
> "Invert, always invert. Many hard problems are best solved backward."
|
||||
|
||||
**In forecasting:**
|
||||
- Hard: "Will this succeed?" (requires imagining all paths to success)
|
||||
- Easier: "It failed - why?" (failure modes are more concrete)
|
||||
|
||||
**Why this works:**
|
||||
- Failure modes are finite and enumerable
|
||||
- Success paths are infinite and vague
|
||||
- Humans are better at imagining concrete negatives than abstract positives
|
||||
|
||||
---
|
||||
|
||||
## Research on Premortem Effectiveness
|
||||
|
||||
### Gary Klein's Studies
|
||||
|
||||
**Original research:**
|
||||
- Teams that did premortems identified 30% more risks
|
||||
- Risks identified were more specific and actionable
|
||||
- Teams adjusted plans proactively
|
||||
|
||||
**Key finding:**
|
||||
> "Prospective hindsight" (imagining an event has happened) improves recall by 30%
|
||||
|
||||
---
|
||||
|
||||
### Kahneman's Endorsement
|
||||
|
||||
**Daniel Kahneman:**
|
||||
> "The premortem is the single best debiasing technique I know."
|
||||
|
||||
**Why it works:**
|
||||
1. **Legitimizes doubt** - In group settings, dissent is hard. Premortem makes it safe.
|
||||
2. **Concrete > Abstract** - "Identify risks" is vague. "Explain the failure" is concrete.
|
||||
3. **Defeats groupthink** - Forces even optimists to imagine failure.
|
||||
|
||||
---
|
||||
|
||||
## Outcome Bias
|
||||
|
||||
### Judging Decisions by Results, Not Process
|
||||
|
||||
**What it is:**
|
||||
We judge the quality of a decision based on its outcome, not the process.
|
||||
|
||||
**Example:**
|
||||
- Drunk driver gets home safely → "It was fine"
|
||||
- Sober driver has accident → "Bad decision to drive"
|
||||
|
||||
**Reality:**
|
||||
Quality of decision ≠ Quality of outcome (because of randomness)
|
||||
|
||||
**For forecasting:**
|
||||
A 90% prediction that fails doesn't mean the forecast was bad (10% events happen 10% of the time).
|
||||
|
||||
**The premortem fix:**
|
||||
By imagining failure BEFORE it happens, you evaluate the decision process independent of outcome.
|
||||
|
||||
---
|
||||
|
||||
## When Premortems Work Best
|
||||
|
||||
### High-Confidence Predictions
|
||||
|
||||
**Use when:**
|
||||
- Your probability is >80% or <20%
|
||||
- You feel very certain
|
||||
- Confidence intervals are narrow
|
||||
|
||||
**Why:**
|
||||
These are the predictions most likely to be overconfident.
|
||||
|
||||
---
|
||||
|
||||
### Team Forecasting
|
||||
|
||||
**Use when:**
|
||||
- Multiple people are making predictions
|
||||
- Groupthink is a risk
|
||||
- Dissent is being suppressed
|
||||
|
||||
**Why:**
|
||||
Premortems legitimize expressing doubts without seeming disloyal.
|
||||
|
||||
---
|
||||
|
||||
### Important Decisions
|
||||
|
||||
**Use when:**
|
||||
- Stakes are high
|
||||
- Irreversible commitments
|
||||
- Significant resource allocation
|
||||
|
||||
**Why:**
|
||||
Worth the time investment to reduce overconfidence.
|
||||
|
||||
---
|
||||
|
||||
## When Premortems Don't Help
|
||||
|
||||
### Already Uncertain
|
||||
|
||||
**Skip if:**
|
||||
- Your probability is ~50%
|
||||
- Confidence intervals are already wide
|
||||
- You're confused, not confident
|
||||
|
||||
**Why:**
|
||||
You don't need a premortem to tell you you're uncertain.
|
||||
|
||||
---
|
||||
|
||||
### Trivial Predictions
|
||||
|
||||
**Skip if:**
|
||||
- Low stakes
|
||||
- Easily reversible
|
||||
- Not worth the time
|
||||
|
||||
**Why:**
|
||||
Premortems take effort; save them for important forecasts.
|
||||
|
||||
---
|
||||
|
||||
## The Premortem vs Other Techniques
|
||||
|
||||
### Premortem vs Red Teaming
|
||||
|
||||
**Red Teaming:**
|
||||
- Adversarial: Find flaws in the plan
|
||||
- Focus: Attack the strategy
|
||||
- Mindset: "How do we defeat this?"
|
||||
|
||||
**Premortem:**
|
||||
- Temporal: Failure has occurred
|
||||
- Focus: Understand what happened
|
||||
- Mindset: "What led to this outcome?"
|
||||
|
||||
**Use both:** Red team attacks the plan, premortem explains the failure.
|
||||
|
||||
---
|
||||
|
||||
### Premortem vs Scenario Planning
|
||||
|
||||
**Scenario Planning:**
|
||||
- Multiple futures: Good, bad, likely
|
||||
- Branching paths
|
||||
- Strategies for each scenario
|
||||
|
||||
**Premortem:**
|
||||
- Single future: Failure has occurred
|
||||
- Backward path
|
||||
- Identify risks to avoid
|
||||
|
||||
**Use both:** Scenario planning explores, premortem stress-tests.
|
||||
|
||||
---
|
||||
|
||||
### Premortem vs Risk Register
|
||||
|
||||
**Risk Register:**
|
||||
- List of identified risks
|
||||
- Probability and impact scores
|
||||
- Mitigation strategies
|
||||
|
||||
**Premortem:**
|
||||
- Narrative of failure
|
||||
- Causal chains
|
||||
- Discover unknown unknowns
|
||||
|
||||
**Use both:** Premortem feeds into risk register.
|
||||
|
||||
---
|
||||
|
||||
## Cognitive Mechanisms
|
||||
|
||||
### Why Premortems Defeat Overconfidence
|
||||
|
||||
**1. Prospective Hindsight**
|
||||
Imagining an event has occurred improves memory access by 30%.
|
||||
|
||||
**2. Permission to Doubt**
|
||||
Social license to express skepticism without seeming negative.
|
||||
|
||||
**3. Concrete Failure Modes**
|
||||
Abstract "risks" become specific "this happened, then this, then this."
|
||||
|
||||
**4. Temporal Distancing**
|
||||
Viewing from the future reduces emotional attachment to current plan.
|
||||
|
||||
**5. Narrative Construction**
|
||||
Building a story forces causal reasoning, revealing gaps.
|
||||
|
||||
---
|
||||
|
||||
## Common Objections
|
||||
|
||||
### "This is too negative!"
|
||||
|
||||
**Response:**
|
||||
Pessimism during planning prevents failure during execution.
|
||||
|
||||
**Reframe:**
|
||||
Not negative - realistic. You're not hoping for failure, you're preparing for it.
|
||||
|
||||
---
|
||||
|
||||
### "We don't have time for this."
|
||||
|
||||
**Response:**
|
||||
- Premortem: 30 minutes
|
||||
- Recovering from preventable failure: Months/years
|
||||
|
||||
**Math:**
|
||||
If premortem prevents 10% of failures, ROI is massive.
|
||||
|
||||
---
|
||||
|
||||
### "Our case really is different!"
|
||||
|
||||
**Response:**
|
||||
Maybe. But the premortem will reveal HOW it's different, not just assert it.
|
||||
|
||||
**Test:**
|
||||
If the premortem reveals nothing new, you were right. If it reveals risks, you weren't.
|
||||
|
||||
---
|
||||
|
||||
## Practical Takeaways
|
||||
|
||||
1. **Use for high-confidence predictions** - When you feel certain
|
||||
2. **Legitimate skepticism** - Makes doubt socially acceptable
|
||||
3. **Concrete failure modes** - Forces specific risks, not vague worries
|
||||
4. **Widen confidence intervals** - Adjust based on plausibility of failure narrative
|
||||
5. **Set kill criteria** - Know what would change your mind
|
||||
6. **Monitor signposts** - Track early warning signals
|
||||
|
||||
**The Rule:**
|
||||
> If you can easily write a plausible failure narrative, your confidence is too high.
|
||||
|
||||
---
|
||||
|
||||
**Return to:** [Main Skill](../SKILL.md#interactive-menu)
|
||||
Reference in New Issue
Block a user