Fallibility Management Group (FMG) is a research, system-licensing and co-investment firm based in
Lexington, KY, USA. The firm's work is generally guided by the philosophy of fallibility - a redefined
Socratic method promoted in the mid-20th century by the philosopher of science Karl Popper. The
philosophy essentially states that finding the areas where your working theory doesn't work is just as
important as finding where and when it does: it pays to spot errors, especially your own.
The philosophy's larger socioeconomic relevance is, perhaps, best described by Popper's most financially
successful student - George Soros:
Lexington, KY, USA. The firm's work is generally guided by the philosophy of fallibility - a redefined
Socratic method promoted in the mid-20th century by the philosopher of science Karl Popper. The
philosophy essentially states that finding the areas where your working theory doesn't work is just as
important as finding where and when it does: it pays to spot errors, especially your own.
The philosophy's larger socioeconomic relevance is, perhaps, best described by Popper's most financially
successful student - George Soros:
The main points to remember are, first, that rational human beings do not base their decisions on
reality but on their understanding of reality and the two are never the same - although the extent of
the divergence does vary from person to person and from time to time... This is the principle of
fallibility.
Second, [in human affairs] the participants' misconceptions… affect the so-called fundamentals which
market prices are supposed to reflect. This is the principle of reflexivity. The two of them together
assure that both market participants and regulators have to make their decisions in conditions of
uncertainty. This is the human uncertainty principle. It implies that outcomes are unlikely to
correspond to expectations...
reality but on their understanding of reality and the two are never the same - although the extent of
the divergence does vary from person to person and from time to time... This is the principle of
fallibility.
Second, [in human affairs] the participants' misconceptions… affect the so-called fundamentals which
market prices are supposed to reflect. This is the principle of reflexivity. The two of them together
assure that both market participants and regulators have to make their decisions in conditions of
uncertainty. This is the human uncertainty principle. It implies that outcomes are unlikely to
correspond to expectations...
A good general approach for countering the negative effects of fallibility and uncertainty is suggested by
empiricist Nassim Nicholas Taleb, famous for his book “the Black Swan”. To protect vital societal systems
from many avoidable failures, Dr. Taleb recommends that every society and organization increase the
“robustness” of its systems.
Unfortunately, neither Soros nor Taleb provides precise system designs to help avoid such failures. They
suggest better general philosophical and political frameworks, but, unable to make the society heed their
advice, simply continue to write books and make money (a lot).
We at Fallibility Management are designers of intelligent human systems. We look at the problems of
fallibility, reflexivity and uncertainty from an organizational cybernetics perspective. This approach relies
not only on the notion of useful redundancy -- the core notion behind "robustness" -- but on agility and
flexibility as well. Such a combination allows for the design of self-adaptive human systems that limit
avoidable failures and simultaneously increase opportunities for success ("positive Black Swans” in Taleb's
parlance).
At this time we offer the following organizational products:
If none of the organizational products listed above seems to fit your particular situation, send us yourrequest for a new system design. We'll see if we can help.
Please keep in mind that we do not get paid until our systems produce the promised results for our clients.
We also keep the names of our clients strictly confidential.
To learn more about FMG's systems, please check for updates or send us your inquiry. We will answer it
as soon as we can.
info@FallMgt.com
empiricist Nassim Nicholas Taleb, famous for his book “the Black Swan”. To protect vital societal systems
from many avoidable failures, Dr. Taleb recommends that every society and organization increase the
“robustness” of its systems.
Unfortunately, neither Soros nor Taleb provides precise system designs to help avoid such failures. They
suggest better general philosophical and political frameworks, but, unable to make the society heed their
advice, simply continue to write books and make money (a lot).
We at Fallibility Management are designers of intelligent human systems. We look at the problems of
fallibility, reflexivity and uncertainty from an organizational cybernetics perspective. This approach relies
not only on the notion of useful redundancy -- the core notion behind "robustness" -- but on agility and
flexibility as well. Such a combination allows for the design of self-adaptive human systems that limit
avoidable failures and simultaneously increase opportunities for success ("positive Black Swans” in Taleb's
parlance).
At this time we offer the following organizational products:
 | A management system for eliminating organizational and societal waste and malfeasance | |
| (learn more at www.CorruptionManagement.com); |
| A management system for improving business and the economic development of companies (or | |
| entire countries) through the collaborative harnessing of the latent entrepreneurial talents of their people (further details at www.CorruptionManagement.com/more); |
| A system for increasing the financial and PR returns of PE firms and privately-owned businesses | |
| (learn more at www.PEHeaven.com); |
| A system for improving motivation and learning outcomes in educational institutions and companies | |
| (call or write for details); |
| A system for increasing the membership, active involvement and fundraising capacities of non-profit | |
| organizations (call or write for details); |
| A system for news organizations that allows production of high-value content (such as thoroughly | |
| fact-checked investigative stories) at negligible cost by using mostly citizen-journalists as manpower; |
| A system for democratic decision-making that de-politicizes governance processes, while increasing | |
| their effectiveness and responsiveness; |
| A hedge fund strategy derived from knowledge gained through our systems. |
If none of the organizational products listed above seems to fit your particular situation, send us your
Please keep in mind that we do not get paid until our systems produce the promised results for our clients.
We also keep the names of our clients strictly confidential.
To learn more about FMG's systems, please check for updates or send us your inquiry. We will answer it
as soon as we can.
info@FallMgt.com
Fallibility Management Group
Better Systems = Better Outcomes
Better Systems = Better Outcomes
| info@FallMgt.com Tel. 859-575-2700 P.O.Box 22704 Lexington, KY, USA 40522-2704 |
Please note that we are an
organizational R&D firm, not a
management consulting outfit.
We help install our systems,
design any desired additions
and take care of them for as
long as necessary.
However, beyond an odd
seminar, we do not engage in
consulting gigs. Being self-
adaptive, our systems take
care of a consultant’s work on
their own.
organizational R&D firm, not a
management consulting outfit.
We help install our systems,
design any desired additions
and take care of them for as
long as necessary.
However, beyond an odd
seminar, we do not engage in
consulting gigs. Being self-
adaptive, our systems take
care of a consultant’s work on
their own.