Productivity & Mindsetadvanced
Second Order Effects
Definition
The knock-on consequences of a decision, the effects of the effects, that show up later beyond the obvious first result.
Why it matters
Thinking through second-order effects stops you making choices that look good today but cause bigger problems down the line.
Example
Slashing prices wins sales now, but trains customers to wait for discounts and squeezes your margins later.
Related terms
Learn the language of business - and build the systems behind it.
Rich Girl Systems turns 1168+ founder concepts into a step-by-step programme with daily challenges, XP and your own assistant.
Take the free founder quiz