In the 1980s, the US provided military and financial support to try and counter the Soviet influence in the Middle East. Some of these Afghan rebels that we trained and armed became figures like Osama bin Laden and others who later formed Al-Qaeda.
Could we have foreseen those decisions in the 1980s leading to 9/11? Probably not. (And maybe it’s not fair to use this example leading into July 4th Weekend… whoops.)
But can all of us benefit from thinking a bit further about our decisions? Absolutely. I know I can.
And that’s what we are talking about today: second-order thinking.
Fancy Definition
Second-order thinking, also known as second-level thinking, refers to a cognitive approach that goes beyond immediate or surface-level considerations and takes into account the potential consequences or ripple effects of a decision or action.
It involves considering the long-term implications, unintended outcomes, and interconnected complexities of a situation. Second-order thinking requires analyzing multiple layers of cause and effect, anticipating how various factors may interact, and considering different possible outcomes before making decisions or formulating strategies.
It helps to mitigate risks, enhance problem-solving abilities, and make more informed choices by considering the broader context and potential ramifications beyond the initial decision.
Jordan’s Humorous Take
It’s this scene from Dude, Where’s My Car…
Like all good advice, this applies everywhere in life.
When I talk to my son and he admits to doing something against our rules, I try to never punish him for that. I’d rather he get away with something than learn not to be honest with me.
When it comes to food, obviously the deep fried pizza is the best choice in the moment, but the salad today could lead to a longer life tomorrow. Or working out today could help you overcome challenges and avoid pain later.
And of course, this applies to your firm as well.
Second-Order Thinking for the Law Firm
When you are making decisions at your firm, you know I love backcasting.
But honestly, a lot of times, you need to think about what other decisions this will lead you to.
- If you commit to being a personal injury firm that will never advertise, that changes how you have to treat clients (hopefully for the better).
- If you commit to being a criminal defense firm that works with students at the local college, that changes what marketing you need to do. Sponsor the football team? Great. PPC ads for that area? Awesome. Sending mailers to all the homeowners in the area? Probably not the best fit.
Seriously, this applies to every worthwhile decision.
For lack of time and in order to focus, I want to break down the three biggest times I see a lack of second-order thinking impacting law firms.
1) Advertising
I don’t even want to touch on where to do it here, but assuming you found a place that works and leads start coming in, second-order thinking helps you walk through questions like:
- How many leads can I handle?
- How many more consultations can we do every week?
- Who is going to take on the extra work?
2) Taking on a Bad Fit Client
Look, I’ve been there. Payroll is due and it’s going to be close. There’s a lead who’s ready to pay now, but it’s a bad fit. They want a deal, the case is a bit outside your wheelhouse, the potential client calls every 20 minutes to see what is going on.
And here’s the part where I might tell you to avoid it at all costs. Except I am not going to do that. Second-order thinking requires a different analysis:
- Is the damage done by missing out on this case going to be more or less than the client will cause once I have taken it on?
- If I miss payroll now, can that help me in the future?
- If I take on this client, what do I have to sacrifice to make it work?
- Or better yet, what can I do differently to never be in this position again?
3) New (to the Firm) Technology
Most of the time, this is a firm not having a CRM or a case management system because it’s going to be tough to set it up and change your ways to use it.
But eventually, if you think about the ramifications, you will see that the investment now is worth its weight in gold later (and the sooner you make the switch, the better).
Ask questions like:
- If this CRM increases my close rate by 10% and saves me 30 minutes per lead, how quickly does it pay for itself?
- When I implement this CMS, how many more cases can everyone handle while still providing an amazing experience for every client?
- If I start using more technology, can I attract talent that better aligns with our core values?
But also, sometimes it goes horribly wrong.
Please don’t get yourself in a situation like Steven Schwartz of the personal injury law firm Levidow, Levidow & Oberman, who used ChatGPT to search for legal cases to write an affidavit for a lawsuit. ChatGPT had made up six fake legal cases to back the lawyer’s argument, which Schwartz included in the filing unknowingly.
At a sanctions hearing, the judge questioned how Schwartz didn’t realize the legal cases were fake and termed ChatGPT’s fabricated cases as “legal gibberish.” Schwartz said he was “duped” by the AI tool and thought the output from ChatGPT were “excerpts” of real cases. He also mentioned that he thought there were cases that could not be found on Google, which is why he did not verify the authenticity of the cases provided by ChatGPT.
So when it comes to new technology, you do have to think:
- What do I need to know about this tech tool to use it properly?
- How can I confirm it’s correct?
- And other things like that.
At the end of the day, an ounce of prevention is worth a pound of cure. When it comes to the truly big decisions, an extra 5-15 minutes of thinking can help you immensely as you continue to build and grow your firm.
In the meantime, have an excellent long week. And I will see you back here next week when we talk about personal branding.