Effectuation Coaching

at Heidelberg Innovation Forum

www.heidelberg-innovationforum.eu

Alexandra Rudl8 April 2014

What makes entrepreneurs entrepreneurial?

Source: therisetothetop.com

Navigate under uncertainty

Causal Logic

Analyse Decide Plan Acquire Ressources Act

The missing toolbox?statisticallylinearpredictablewell-knownassessableprojectableknowledge

dynamic

Not predictable

Not assessable

unknown

incalculable

Source: www.blogs.telerik.com

Causal tools ?

Effectuation – A definition• A logic of thinking, discovered through

scientific research, used by expert entrepreneurs to build successful ventures (Prof. Saras Sarasvathy, University of Virgina)

• Four principles – one process

"If I had a budget, I could ask a specialist in the field of education to go through data and give me ideas ofhow many universities, how many media, how many large companies I will have to contact to have an ideaof the work that has to be done."

vs.

"I'd just go sell it. I don't believe in market research. Somebody once told me the only thingyou need is a customer. Instead of asking all the questions, I'd try and make some sales. I'd learn a lot […] . So my market research would actually be hands-on actual selling."

Causal reasoning Effectual reasoning

Bird in Hand – Start with your means

www.effectuation.org

Causal logic Effectuation logic

Selection / Creation of means in order to reach a specific, pre-defined goal

Discovering potential goals and results based on a given set of means

© Faschingbauer, Mauer (2014)

Affordable Loss – Focus on the downside risk

www.effectuation.org

© Faschingbauer, Mauer (2014)

Causal logic Effectuation logic

The committment depends on the expected earning

Earning

Committment

The committment depends what you can afford to loose at each step

Leverage contingencies

www.effectuation.org

© Faschingbauer, Mauer (2014)

Causal logic Effectuation logic

Demarcation from circumstances and coincidences

Leveraging circumstances and coincidences

http://www.basicthinking.de/blog/wp-content/uploads/2013/02/Post-it1.png

Patchwork Quilt – Form Partnerships

www.effectuation.org

© Faschingbauer, Mauer (2014)

Causal logic Effectuation logic

Searching the „right“ partner

Committments with those who are willing to take part and to contribute

Bird in Hand – Start with your means Affordable Loss – Focus on the downside risk

Leverage contingencies Patchwork Quilt – Form Partnerships

www.effectuation.org

When to apply effectuation?

© Faschingbauer, Mauer (2014)

Existing markets

New Markets

Existing products

New products

http://notes.fundersandfounders.com/image/81999963246

Effectuation in practice: The Instagram Story

Contact

Alexandra RudlHead of Talent Support / Innovation FosteringMFG Innovation Agency for ICT and Mediarudl@mfg.de