# Second-order business effects of adapting to changes in physical meetings - URL: https://www.petrikajander.com/second-order-business-effects/ - Author: Petri Kajander - Date: 2020-09-15 - Language: en - Audio: https://anchor.fm/s/1018a6478/podcast/play/98857265/https%3A%2F%2Fd3ctxlq1ktw2nl.cloudfront.net%2Fstaging%2F2025-1-22%2F395326691-22050-1-9944c3e944ea35bf.mp3 - Video: https://www.youtube.com/watch?v=jiaHV1miKsk Second-order effects (or consequences) can impact your business and result in massive changes in your business model or operations. If people avoid physical proximity what are the implications that are harder to see at first? In this [video](https://www.youtube.com/watch?v=s-I_X6d2wAw), I continue the theme of adapting to changes this year. The previous [video](/do-you-still-have-a-business-model/) questioned whether you still have a business model. This one tackles the issue of second-order consequences that are harder to pinpoint. I wrote about the topic more extensively in the spring (about [second-order effects](/second-order-effects-of-corona/) and about [physicality](/post-corona-new-normal/)). [Video](https://www.youtube.com/watch?v=s-I_X6d2wAw) Timestamps [00:00](https://www.youtube.com/watch?v=s-I_X6d2wAw&t=0s) Changes in your business environment [00:26](https://www.youtube.com/watch?v=s-I_X6d2wAw&t=26s) Physicality [00:39](https://www.youtube.com/watch?v=s-I_X6d2wAw&t=39s) Business implications [01:51](https://www.youtube.com/watch?v=s-I_X6d2wAw&t=111s) Second-order consequences [02:21](https://www.youtube.com/watch?v=s-I_X6d2wAw&t=141s) An example of second-order consequences [04:49](https://www.youtube.com/watch?v=s-I_X6d2wAw&t=289s) Reasons why you don't have customers anymore [06:28](https://www.youtube.com/watch?v=s-I_X6d2wAw&t=388s) Adapting to the new situation [07:56](https://www.youtube.com/watch?v=s-I_X6d2wAw&t=476s) Bonus - why this topic? ## Transcript (https://www.youtube.com/watch?v=jiaHV1miKsk, YouTube's automatic captions) [0:03] Impact your business and result in massive changes in your business model operations if people avoid physical proximity what are the implications that are harder to see at first in this video I continue the theme of adapting to changes this year the previous video questioned whether you still have a business model this one tackles the issue of second order consequences that are harder to pinpoint I wrote about the topic more extensively in the spring about second order effects and about physicality time stamps O Colon o changes in your business environment O Colon 26 physicality O Colon 39 business implications 01 colon 51 second order consequences 02 colon 21 an example of second order consequences 04 colon 49 reasons why you don't have customers anymore 06 colon 28 adapting to the new situation 07 colon 56 bonus why this. ## Transcript (https://www.youtube.com/watch?v=s-I_X6d2wAw) [0:00] What are the fundamental changes in your business environment? Let's take physicality. We took as granted just a few months ago that we can meet and greet, talk with people. We can be in huge events with a lot of people close to each other. We can go to cruises and we can take public transportation. And this is not the case anymore. Physicality, intimacy, is becoming something we don't want to do with strangers. And this has a lot of implications. These are things, which are changing our habits. The way we are doing things. [0:49] The way we are considering what to do and whether we actually prefer doing something. And it's a huge change. And if you are in a business where physicality, being in the same place at the same time with other people, is an important component, this is a topic for you to really pay close attention to. But if you answered no, that's not important for me. Well, consider physicality as just an example of one thing which has changed this year. But there are others as well. So what are those things in your business that have changed? [1:42] There are so many of these things, but they may take a bit of time to materialise and become evident. What is often hidden, what is harder and what is not evident with your gut feeling are all of those things, which are second-order consequences. So they're not immediate, right in your face, but they do matter. Well, what is a second-order consequence? Let's take an example. Let's say that you don't prefer to use the public transportation anymore. So what does it mean? [2:31] Imagine you have a city center where at least in Europe, you prefer to take the public transportation to go there. So you're taking the train. You're taking the tram, you're taking the bus, whatever means you have in that city. So you're leaving a call or other means home. And this was perfectly okay before 2020. City centres had a lot of shops, retail shops. There were a lot of activities. It was fun to be there. There was so many people there, live-action in the evening. But what's the problem now? Why is it so quiet? [3:19] Why there are no people? Well, if the public transportation bit is not working, if the crowd is not something you prefer anymore, public transportation, how to get there, might be an issue. Maybe you can take a scooter, maybe even walk. Maybe you can take a bike. Maybe you don't need a car. But maybe if you're coming a further away, you would actually need a car, but there're no parking spaces or it's actually too expensive because the city has been planned in a way that you use public transportation. But that's not an option anymore. Or you don't prefer to do that if you don't absolutely need to take it. Another thing is that if you avoid public places, a lot of people together, shopping malls or any other places in the city centre, movie theatres, or shops or cafes or restaurants or clubs or gyms are not exactly in top of your list if you can avoid them or you have some other ways to use the services or even change to do something else. [4:40] And these are second-order consequences. If you're thinking about why I'm not getting the customers, why I'm not getting the foot traffic, why I'm not having what I had before. Maybe it is because of this aspect that something has been changing in the path for the customers to get to you and consume your services. Physicality, it's a big thing. It's a huge thing. And we have taken that as granted. As a thing that we can rely on. And it's so rich experience when you could hear me talking live with you in the same room. [5:36] Well, that's not the case anymore. Surprise! I'm not live. I'm not with you, but you can still feel me, at least see me, hear me. And that's how we are shifting and changing. The good news is that you have the best view. So have the others as well. You not in the back row, you're not further away in the audience from the podium. You're exactly in the middle of it. They are good things, there are bad things happening. But the most important thing is that consider how important these things are which have changed. And maybe the changes are not exactly the first thing in your mind. Maybe it's the something along the way. [6:27] It's like transportation. Maybe there're no crowds in what you are you doing in your business but just the difficulty of people to get to you might be the issue. And if this is the case, then probably there's an option that maybe you should move where the people are, and then your in business again. Another alternative is that you need to change and convert to new ways of doing things. Doing digitally, remotely, those things what you have been doing. And that's a bigger change and that's a harder change, but it's an opportunity as well. If you're really good what are you doing it just means that you have to think a bit more how you can deliver the services, how you can provide the excellent things people want from you and you can delight them again. [7:31] This is my message today. Please think about the second-order of consequences as well. Physicality, intimacy, a lot of people together might not be a good idea, and people may start to think that we need to do something else in other ways or that I just don't feel comfortable anymore. And as a bonus, why I took this topic today? Well, a friend of mine I was talking to the other day, he mentioned that he went to a business conference, which was surprisingly happening, and he felt awkward. So awkward. Because when you are in those places, you want to network, you want to meet new people, you want to bump into new people. [8:24] You just want to have casual talks and exchange business cards and maybe find some new connections, some new exciting opportunities together. But people do not want to meet new people. They don't want to physically be close to each other. And that's a huge thing. Why do you going there? Just to listen to those keynotes, you could have consumed from your sofa? So that changes a lot of things as well. How do you get new leads? What's your sales process now, how do you get these amazing opportunities just by accident? If accidents cannot happen because people are not meeting each other again. Till next time!