The Three Categories of Unintended Consequences

Paul Orlando

25 years: Systems specialist

In this video, Paul talks us through the three main categories of unintended consequences, i.e., "Unexpected benefits", "Unexpected drawbacks" and "Perverse results"

Risk Management

In this video, Paul talks us through the three main categories of unintended consequences, i.e., "Unexpected benefits", "Unexpected drawbacks" and "Perverse results"

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The Three Categories of Unintended Consequences

10 mins 45 secs

Key learning objectives:

Understand the three main categories of unintended consequences

Overview:

There are three categories of unintended consequences. The unexpected benefit, which is a positive but unplanned outcome, The unexpected drawback, in which we create a problem that is apart from the problem we wish to solve, And perverse results, wherein in trying to solve a problem, we actually make it worse.

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Summary

What are the three main categories of unintended consequences?

Unexpected benefits - With this category of unintended consequence no second-level thinking is involved. Once we notice the outcomes, those outcomes should be direct and predictable. We can often make these so-called “unexpected benefits” happen again if we take the same actions. Unexpected benefits of some sort are impossible to not find as long as you think broadly and creatively. They are simpler to understand, perhaps, because the benefits created often do not involve the actions of people.
Unexpected drawbacks - This type of unintended consequence occurs when the goal was to improve “A” and we later learn that in the process, we made “B” worse. These are also referred to as “externalities.”
Perverse results - ‘Perverse Results’ happen when our goal was to improve “A” but we actually make “A” worse. These are often the most frustrating category of unintended consequences.

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Paul Orlando

Paul's writing on "unintended consequences" comes from his work delving into the systems that he works to impact. He is the founder of Startups Unplugged, a consulting firm devoted to helping large organizations execute with the speed of startups. To do this, Paul often builds startup accelerators and incubators, helping organizations generate more revenue and enabling communities to attract new businesses. He is adjunct professor at the University of Southern California, running the institution's Incubator and in the past built other innovation programmes globally including AcceleratorHK in Hong Kong and the Laudato Si startup incubator in Rome. Paul graduated from Cornell University and Columbia Business School.

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