Run a pre-mortem from the outside-view perspective
Imagine the project has failed — then ask which base-rate failure type caused it.
Why it works
A standard pre-mortem asks "why did this fail?" Gary Klein showed this loosens the group’s commitment to the plan and surfaces risk. Combining it with outside-view thinking sharpens it: rather than imagining novel failure modes, ask which known categories of failure (the ones that appear in the reference class) caused the imagined failure. This imports the distribution into the pre-mortem rather than relying on creative speculation.
How to do it
- Gather the team before committing to the plan.
- State: "Imagine it is one year from now and this project failed badly. What did the failure look like?"
- Then ask: "Which of the common failure types for projects like this — late, over-budget, low adoption — is this?"
- Document the top two or three failure types and build explicit mitigation measures for each.
Evidence
Klein’s pre-mortem technique is well described in the practitioner literature; its effectiveness in reducing overconfidence is plausible and anecdotally reported, though direct RCT evidence is limited. The outside-view extension is a conceptual combination rather than a separately studied technique. Mitchell, Russo, and Pennington (1989) supply the underlying mechanism: prospective hindsight — imagining an outcome as already having occurred — measurably increases the number and specificity of reasons people can generate for it, which is what the pre-mortem exploits. (anecdotal)
Pre-mortems work best with psychological safety — teams under hierarchical pressure tend to produce sanitized failure scenarios that don’t threaten the plan.
Sources
- Klein (2007), "Performing a project premortem," Harvard Business Review
- Klein, G. (2007). Performing a project premortem. Harvard Business Review, 85(9), 18-19.
- Mitchell, D. J., Russo, J. E., & Pennington, N. (1989). Back to the future: Temporal perspective in the explanation of events. Journal of Behavioral Decision Making, 2(1), 25-38.
Common mistake
Generating only creative or catastrophic failure scenarios ("what if the market collapses?") rather than the mundane base-rate failures that actually happen most often ("what if this takes three times longer than estimated?").
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More practices for The Outside View
- Invoke the outside view before committing to any significant plan
Before finalizing a plan or forecast, ask "How did similar things go?" as the first checkpoint.
- Actively seek disconfirming cases
When researching base rates, specifically look for cases where things went badly — failure cases are underrepresented in natural memory.
- Separate motivational optimism from your forecast
Let your ambition be honest about what it is — a desired outcome — without contaminating your probability estimate.
- Defer heavily to base rates when entering a domain where you lack experience
In unfamiliar territory, the class distribution should almost entirely govern the forecast.
- Score your own past predictions to calibrate your outside-view use
Keep a forecast log and score it — you cannot improve calibration without feedback on where you were over- or under-confident.