{"id":15056,"date":"2020-09-29T09:03:45","date_gmt":"2020-09-29T13:03:45","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=15056"},"modified":"2020-10-01T17:48:07","modified_gmt":"2020-10-01T21:48:07","slug":"second-order-consequences","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/second-order-consequences\/","title":{"rendered":"Second Order Consequences: What They Mean"},"content":{"rendered":"\n

What are second order consequences? How does embracing radical transparency<\/a> lead to weighing consequences?<\/p>\n\n\n\n

Everything you do has first, second, and third order consequences. Second order consequences are a type of consequence that are a longer term and are less directly related to the action. <\/p>\n\n\n\n

Read more about these types of consequences below. <\/p>\n\n\n\n\n\n\n\n

Transparency and Consequences<\/h2>\n\n\n\n

Radical transparency lets everyone see everything.<\/strong> Everyone gets access to the full truthful information, rather than having it filtered through other people first. In turn, people with better information can make better decisions<\/a>, and the organization draws on the full power of its people.<\/p>\n\n\n\n

Dalio suggests that you should be radically transparent as a default, with very few exceptions<\/strong>. Often the most difficult information to share is the most important to share, because it builds the trust of people you are sharing it with. Consider the second- and third-order consequences of not sharing something.<\/p>\n\n\n\n

Weigh All Your Consequences<\/strong><\/h4>\n\n\n\n

Every action has a direct \u201cfirst-order\u201d consequence, as well as longer-term second- and third-order consequences. The second order effect of your actions are also worth considering in addition to immediate consequences. <\/p>\n\n\n\n

For example, saving money has the first-order consequence of deducting money from your account that you can\u2019t spend today. While this is painful, the second consequences are better\u2014you have more money saved for retirement. The third-order effect is even better still\u2014with more money saved for retirement, you feel less stress about your career and might have more options for how you spend your time<\/a>.<\/p>\n\n\n\n

Think of the consequences as a series of dominoes, one triggering the other.<\/p>\n\n\n\n

Some of the hardest habits to adopt have painful short-term first-order consequences but fantastic second- and third-order consequences. Don\u2019t let short-term first-order consequences deter you from reaching the real goals.<\/strong><\/p>\n\n\n\n

As another example, physical fitness requires the painful first-order consequence of exercise, dieting, and self-restraint when eating. The second order consequences are things like better health. The third-order consequence is greater happiness, self-confidence, and more. It\u2019s worth enduring the shorter-term pain for the longer-term gain.<\/p>\n\n\n\n

Inversely, some things that are bad for you long-term have very tempting first-order consequences. For example, smoking presents an immediate first-order reward, with dire long-term consequences. But what about the second order effect? <\/p>\n\n\n\n

From his evolutionary viewpoint, Dalio considers that nature may even be throwing us trick choices to punish people who make short-term decisions on first-order consequences alone.<\/p>\n","protected":false},"excerpt":{"rendered":"

What are second order consequences? How does embracing radical transparency lead to weighing consequences? Everything you do has first, second, and third order consequences. Second order consequences are a type of consequence that are a longer term and are less directly related to the action. Read more about these types of consequences below.<\/p>\n","protected":false},"author":5,"featured_media":15075,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[43,30],"tags":[129],"class_list":["post-15056","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-self-improvement","category-work","tag-principles-life-and-work","","tg-column-two"],"yoast_head":"\nSecond Order Consequences: What They Mean - Shortform Books<\/title>\n<meta name=\"description\" content=\"What are second order consequences? 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