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gh-lyndonkl-claude/skills/forecast-premortem/resources/premortem-principles.md
2025-11-30 08:38:26 +08:00

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# 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%
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### 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)