# Second-order effects When we think about the potential effects or impacts of our decisions and actions, we often fail to think about the second-order effects, things that will happen as a result of the immediate consequences. Our focus tends to remain on the obvious and immediate outcomes. For example, a company might reduce staff to cut costs (first-order effect), but fail to anticipate the resulting decrease in morale and productivity among remaining employees (second-order effect). The ability to think about, and anticipate these consequences requires a more systems-oriented approach to decision-making. Developing this deeper foresight can dramatically improve the quality of our choices and help us avoid unintended consequences that often undermine our original goals. ## Related - [[We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run]]