I've always heard of fail fast in the sense that Eric Ries and Steve Blank talk about it: Get your product in front of customers as soon as possible. Iterate.

Don't hole up and build your grand ideas for 1 year before anybody sees it and gives you feedback because you're afraid to fail.. fast.

But Suster seems to be talking about a different things. It's like corporate types taking a product development methodology and applying it to running a company. That's frightening!