Second-order thinking for individual decision-making

Satyajit Rout
2 min readJul 28, 2022

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Second-order thinking makes us imagine the unseen problems and opportunities created by every action we take.

A three-step process for making second-order thinking a part of your decision-making toolkit ๐Ÿ› 

1๏ธโƒฃ ๐‹๐จ๐จ๐ค ๐›๐ž๐ฒ๐จ๐ง๐ ๐ญ๐ก๐ž ๐Ÿ๐ข๐ซ๐ฌ๐ญ ๐š๐ฏ๐š๐ข๐ฅ๐š๐›๐ฅ๐ž ๐จ๐ฉ๐ญ๐ข๐จ๐ง, ๐ง๐จ ๐ฆ๐š๐ญ๐ญ๐ž๐ซ ๐ก๐จ๐ฐ ๐ซ๐ข๐ ๐ก๐ญ ๐ข๐ญ ๐Ÿ๐ž๐ž๐ฅ๐ฌ

The first answer from within comes from your reflexive system. It is where your biases rule. So if your โ€˜heartโ€™ tells you tomorrow looks positive, ask about the day after. Because what is easy tomorrow tends to snag the day after. Think about it: if somethingโ€™s easy at first and easy through and through, shouldnโ€™t everyone be a part of this get-rich scheme already? What are you missing?

2๏ธโƒฃ ๐…๐จ๐ซ ๐ž๐š๐œ๐ก ๐จ๐ฉ๐ญ๐ข๐จ๐ง, ๐ฅ๐ข๐ฌ๐ญ ๐๐จ๐ฐ๐ง ๐ฐ๐ก๐š๐ญ ๐ฆ๐š๐ฒ ๐ก๐š๐ฉ๐ฉ๐ž๐ง ๐ข๐Ÿ ๐ญ๐ก๐ข๐ง๐ ๐ฌ ๐ ๐จ ๐ฐ๐ž๐ฅ๐ฅ ๐š๐ง๐ ๐ข๐Ÿ ๐ญ๐ก๐ž๐ฒ ๐ ๐จ ๐ฉ๐จ๐จ๐ซ๐ฅ๐ฒ.

Say you want to build your skills and earn more, in that order. Youโ€™re debating between staying in your job and finding a better position elsewhere. Instead of doing pros and cons for each option, map the results of each option faring well and poorly. For example, the current job going well could mean you learn new skills, work on interesting projects, and get a hike and promotion in the next appraisal. Same thing going poorly: business priorities change, you play a support role, skill-building is harder.

3๏ธโƒฃ ๐…๐ข๐ง๐š๐ฅ๐ฅ๐ฒ, ๐ฐ๐ซ๐ข๐ญ๐ž ๐๐จ๐ฐ๐ง ๐ญ๐ก๐ž ๐ข๐ง๐Ÿ๐จ๐ซ๐ฆ๐š๐ญ๐ข๐จ๐ง ๐ฒ๐จ๐ฎ ๐ง๐ž๐ž๐ ๐ญ๐จ ๐๐ž๐œ๐ข๐๐ž ๐จ๐ง ๐ญ๐ก๐ž ๐›๐ž๐ญ๐ญ๐ž๐ซ ๐จ๐ฉ๐ญ๐ข๐จ๐ง.

In the continue-versus-leave question, your list should expose what you need to find to make the decision. What does your current skill set leave you out of? Whatโ€™s the quality of intra-team talent for the things you cannot do? Is there role fungibility or exclusivity in your team? Is the way your team is structured the norm or the exception in your industry? Whatโ€™s the market demand for your skillset and background?

For any consequential-irreversible decision, asking the right questions is a great first step toward reducing uncertainty. But there are no standard questions. They depend on the specifics of your situation. Apply second-order thinking to understand not just the potential opportunities but also the problems that may emerge from your decision.

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Satyajit Rout
Satyajit Rout

Written by Satyajit Rout

I write about decision-making, mental models, and better thinking and things in between

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