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Mental Models #4: Second Order Thinking - Considering The Unexpected

Founder's Journal

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The Second Order Effect of Hiring a Senior Leader

When you pay for a senior leader, you're really paying for an entire part of an organization. That is the second order effect of hiring a great senior person. A first order thinker who wants to maximize the top line, or revenue of their business is going to end up stretching quotas for their sellers. Let me leave you with one last story that, while entertaining, is an amazing illustration of failed second order thinking. The cobra effect basically what happened was, the british were ruling india, and the city of delli was infested with cobras.

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