Watching For Unintended Consequences

consequencesEvery action has consequences. There are the intended consequences, which are what you want to happen, and the unintended consequences, which may or may not be beneficial.

For example, word that a company was for sale reached investors. As a result, investors jumped in and the stock price went up. As a result of the stock price going up, the company that was buying it decided it was now too expensive and pulled out. With no buyer, the stick dropped below where it had started. Is it good or bad? If you are an investor and you timed it right, it could have been very good because you made money by buying low and selling high. If you are the company and you needed to be bough, it’s bad.

The point is that whenever you take action, you need to watch for the unintended consequences and be prepared to respond. The purchasing company in the example could come back after everything happened and put in a lower bid based on the new stock price. While some unintended consequences are predictable, others aren’t. Your action doesn’t end with that initial action. You need to watch for the consequences and react accordingly.