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Counterfactual thinking

Learning guide and study notes

What if we did not do this? Use it to compare action, inaction and failure paths.

What you will learn

  • Separate before-and-after change from causal effect.
  • Construct a defensible “what if we had not” comparison.

What is it?

Counterfactual thinking tests a proposed choice against realistic alternatives—including the true cost of doing nothing and a structured premortem of how the preferred plan could fail—before committing resources.

Counterfactuals compare a chosen path with plausible alternatives. A premortem is one exercise: imagine the plan failed, then inspect why before committing.

Core question
What if we did not do this?
When to use it
Use it to compare action, inaction and failure paths.

Tools and techniques

Key techniques

  • Realistic do-nothing baselineModel the ongoing risk, cost, and degradation of inaction rather than treating status quo as zero-cost.
  • Prospective hindsight (Premortem)Assume the plan failed six months after launch and independently list plausible failure mechanisms.
  • Staged vs. full-commitment comparisonTurn the top premortem failure causes into pre-launch dependency and rollback tests.

Procedure: think it through step by step

Work through these steps in order, applying the tools above. Write down the answer to each step before moving on.

  1. State the baseline

    Define what would likely happen without the proposed action; do not assume inaction has no cost. [1] Source: Harvard Business Review — Performing a Project Premortem (opens in a new tab)

  2. Imagine failure

    At a fixed future date, assume the plan failed; independently list plausible causes and compare alternatives. [1] Source: Harvard Business Review — Performing a Project Premortem (opens in a new tab)

  3. Change the plan

    Turn the strongest causes into tests, mitigations or a changed recommendation. [2] Source: CIA — A Tradecraft Primer (opens in a new tab)

Try it now

Write a do-nothing path, then assume your preferred option failed in six months; list three causes you can test today.

Visual guide

WorkflowFrom situation through deliberate steps to output
Workflow chart: Counterfactual thinking
Read the workflow as text
  1. SituationA database migration is proposed.
  2. Step 1State the baseline
  3. Step 2Imagine failure
  4. Step 3Change the plan
  5. OutputTest dependency and rollback assumptions before selecting the timing.
Mind mapFour connected questions to keep in view
Mind map: Counterfactual thinking
Read the mind map as text
Counterfactual thinking
Do-nothing baseline
Alternate paths
Plausible failure
Tests and mitigations

Detailed examples

Core scenario

Situation: A database migration is proposed.

How to apply: Compare doing nothing, migrating now and a staged move; imagine a failed migration caused by hidden dependencies.

Outcome: Test dependency and rollback assumptions before selecting the timing.

02 / Evaluating whether a post-incident control actually prevented outages

Situation: Six months after adding a manual change-review board, the team celebrates having zero major outages.

How to apply: Ask the counterfactual: how many submitted changes were actually modified or rejected by the board versus caught earlier by automated staging tests?

Outcome: Discover the board rubber-stamped 99% of tickets while automated tests caught the bugs; streamline the board and strengthen automated checks.

03 / Premortem on a global network cutover

Situation: An infrastructure team is confident in a weekend cutover plan for core routing.

How to apply: Run a 20-minute premortem: “It is Monday morning and the cutover had to be aborted—what went wrong?” Surfacing out-of-band console access depending on the very network being cut over.

Outcome: Verify independent out-of-band console paths before the maintenance window begins.

Illustrative examples showing how the lens changes decisions; not measured outcomes.

Practice and keep learning

Watch out: A premortem is structured imagination, not evidence that the imagined failure will occur.

Getting better at it

  • 01 · Learn the foundationNever compare a proposal against a static, pain-free status quo; compare it against what actually happens if you do nothing for 12 months.
  • 02 · Build daily fluencyBefore launching any major change, have team members silently write two reasons the project could fail in six months, then address the top risks.
  • 03 · Master under pressureWhen evaluating past successes or failures, separate luck and external tailwinds from the causal impact of your actions.

Combine this lens with others rather than relying on it alone. Browse all thinkings

Review and make it your own

The idea to remember

To judge an action’s effect, compare what happened with a plausible alternative under comparable conditions.

An outline for your notes

Use a problem of your own. Write a short answer to each prompt, then return after trying the method.

  • Action: define the intervention and the outcome being evaluated.
  • Alternative: describe what would plausibly happen without it.
  • Validity: list confounders, assumptions, and evidence for the comparison.

Check your understanding

Answer from memory before opening the suggested answer.

Errors fell after a deployment. Does that establish its benefit?

Compare with a suggested answer

Not alone. Traffic, other changes, or regression to the mean may explain the change. Compare against a credible no-deployment path.

What makes a counterfactual unfair?

Compare with a suggested answer

Changing unrelated assumptions to make the preferred action look good. Keep conditions comparable and explain unavoidable differences.

Sources

These sources support the method; the examples and exercises are original teaching illustrations.

  1. Harvard Business Review — Performing a Project PremortemGary Klein's exercise for surfacing failure causes before launch.
  2. CIA — A Tradecraft PrimerWhat-if analysis and alternative futures.
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