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The Personal MBA: The Book

Master the Art of Business - by Josh Kaufman, founder of PersonalMBA.com

Second-Order Effects

This is a preview of a concept contained in The Personal MBA by Josh Kaufman, a book that will help you master the fundamentals of business, hone your business instincts, and save a fortune in tuition. The Personal MBA distills the most powerful principles of business and delivers them quickly and concisely. Order your copy now…

What is “Second-Order Effects”?

“While we are free to choose our actions, we are not free to choose the consequences of our actions.” — Stephen Covey, author of The Seven Habits of Highly Effective People

Key Points:

  • Every action has a consequence, and each consequence has another consequence. These are called Second-Order Effects.
  • Every change you make to a system will have Second-Order Effects, which may affect the system’s functionality.
  • Be careful when making changes, they may have the opposite effect of what you aimed for.

Questions for Consideration:

  • What are the probable consequences of a system change you’re considering?
  • What are the probable consequences of those consequences?
  • What can you do to minimize the probability and cost of unintended consequences?

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True leaders aren’t made by business schools – they make themselves, seeking out the knowledge, skills, and experiences they need to succeed. Read this book and you will learn in one week the principles it takes most business professionals a lifetime to master. Buy The Personal MBA by Josh Kaufman now.