Page 37 · Module 01, Think Like a Strategist · this screen continues that page

All 108 frameworks
1.7IntermediateModule 01 · Think Like a Strategist

Second Order Thinking

A decision seems obviously good but you're worried about unintended consequences.

The prompt

Copy & paste ready
1.7Second Order Thinking
Act as a strategic advisor specialising in consequence mapping. Proposed action : [YOUR DECISION OR ACTION] Context : [INDUSTRY, STAGE, STAKEHOLDERS AFFECTED] 1st Order : Immediate, direct effects? 2nd Order : What does each 1st-order effect then cause? 3rd Order : What does each 2nd-order effect lead to? Flag any 2nd or 3rd order effects that could undermine the original goal even if 1st order looks positive. Third-Order Thinking Examines long-term implications Second-Order Thinking Negative Consequences Considers subsequent Identifies potential consequences downsides First-Order Thinking Decision Adjustment Focuses on immediate Modifies plans based on outcomes analysis The Power of Second-Order Thinking
LabelsReplace theseSwap the role below

LabelsReplace theseSwap the role below

Pro tip, from the book

Don't just apply this to risky decisions. Good decisions often have harmful second-order effects that nobody maps because everyone is celebrating the first-order win.

Who should run this prompt

Module role profile

Who should reason through this problem? The quality of your thinking is shaped by whose lens you borrow. A strategist and a risk analyst look at the same problem and see completely different things — both useful, both necessary. Before you prompt, choose who you need in the room. These profiles give you six internal perspectives and four outside views that challenge your assumptions before you commit to them.

Choose any role to drop it into the prompt above. Only the highlighted opening clause changes — the rest of the prompt stays exactly as printed.

Internal rolesThink from inside the organisation
Outside perspectivesChallenge your blind spots

◆◆◆◆◆ → ◆ seniority, board level down to specialist outside the organisation

How to make any role sharper

  1. Add years of experience: "...with 15 years in enterprise SaaS" produces different depth than just the title.
  2. Add what they care most about: "You care most about [X]" shapes every word of the output.
  3. Add their communication style: "Be direct. Flag risks first. No jargon." changes the tone entirely.
See also: 1.3 Role Prompting - The Expert Chair

Use this when

The problem it solves

Everyone agrees on the first-level outcome but nobody is thinking about what that outcome causes next.

How the framework works

From the printed page

First-order thinking asks: what happens if I do this? Second-order thinking asks: and then what? And then what after that? Most bad decisions look good at the first level. The consequences that hurt you are almost always second or third order. Howard Marks popularised this in investing. It applies to every business decision.

The method, in 7 moves

Do these in order
1

Define your proposed action or decision clearly.

2

Ask AI to map first, second, and third order consequences.

3

Pay special attention to negative effects of positive first-order outcomes.

4

Use the output to adjust the plan before committing resources. What happens after what happens next?

5

Have I considered how the people affected by this decision will respond and adapt, not just the immediate outcome?

6

Does my plan account for second-order effects 6 to 12 months out, not just next quarter?

7

Am I solving the visible symptom or the underlying cause that will keep producing symptoms? QUICK CHECK

Where the framework comes from

Howard Marks, Oaktree Capital — The Most Important Thing, 2011

When this page changes, your copy of the book does not have to.

The book prints the framework. This page keeps it — and keeps the prompt current, because prompting technique moves faster than print does. When it moves, this page is rewritten and the code in your copy keeps pointing at it. No second edition, no replacement purchase, no account.

If something here looks wrong — a prompt that does not match its framework, a figure that reads oddly — tell Raphy. That correction reaches every printed copy at once.

Framework1.7 of 108
Printed onPages 3637
Prompt extracted18 Sept 2026
Costs to readNothing, no account

Copying is free. An account keeps them.

Nothing on this page is behind a login and nothing ever will be. Save any prompt to your own list, pick up on another device, and send a colleague a link with your name on it. No card, no trial, no paywall on the prompts themselves.

See how it works
Save this framework to your own list
Pick up where you left off on another device
Send a colleague a link with your name on it