David Kelley, CEO of IDEO, usually gets credit for this quote. Other sources suggest that he got the idea from IBM.
ISBN-10: 1578518520
Also the author of The Innovator's Dilemma.

Back Story:

Fail Faster

"Fail faster to succeed sooner," or so the saying goes.

Intellectually, it makes a lot of sense. Most small businesses fail. Most new products vanish without a trace. Venture capitalists -- arguably the best idea finders in the world -- are delighted if a third of their investments succeed.

So if failure is inevitable, better get it over with, learn the lesson, and move on.

You first.

That's the difficulty, of course. Neither most corporate cultures nor society at large are terribly tolerant of failure. The more spectacular the failure, the more dire the career consequences are likely to be. Falling short of a difficult goal is often punished more severely than shambling along in mediocrity. 2003 ALCS... 

Yet the spectacular career- and company-killing failures are usually not the result of "failing faster." Just the opposite. These disasters happen when companies refuse to admit failure, plowing more and more resources into an idea that just isn't going to work. Rather, the point is to identify failures quickly and move on to something else. Then again......