Adaptive toolbox v3.1


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HOW to do 'entrepreneurship'? - not just WHAT to do but HOW to do WHAT.

John Boyds OODA loop will probably do it and that Boyds most contentious ORIENTATION can be resolved by use of the Adaptive Toolbox?

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Adaptive toolbox v3.1

  1. 1. th DOeS March 12 2012Entrepreneurs Why its done Whats doneWhat they do and how to do itHow to do it Threads that Notes/Links/Co run through ntact the topic
  2. 2. Building an Adaptive ToolboxWHAT TO DO HOW TO DO IT
  3. 3. Whats an Adaptive Toolbox?Arguably its the entrepreneurs essential helper, it builds upon the mental models, thinking patterns and rules of thumb that an entrepreneur adopts through life. Its roots lie in the dynamics of human social interactionIt contains the often self designed instruments that we adapt to help make sense of the broad spectrum of issues that confront us on our unique life journeys – the toolbox adapts day by dayIt has three layers [] evolved capacities [] strategic positioning [] reciprocal altruismWell see if the beginnings of your own adaptive toolbox can be started today
  4. 4. OverviewHow to start building an Adaptive Toolbox__________________________________FAQsAbout Entrepreneurs?What would be their Job Description?What are they looking for? - Why?What resources do they use to find what theyre looking for?Money & various futuresAt the end of this - Whats in our Toolbox?
  5. 5. Real life supportThis presentation and bibliography is also available online at[] Please support DOeS Liverpool[] Get involved with Entreprise[] Join 0151 Knowledge Cafe FINIS ~ discussion/ questions welcome ~
  6. 6. Whats an entrepreneur ?There are thousands of definitions – all different !I like one of the oldest ....entrepreneurs undertake......“ Activities involving the movement of assets from areas of low-productivity to areas of high-productivity” Assets can be physical, financial, intangible, and human, the question is “How can we use those assets in a different perhaps more productive way?”thats the big question entrepreneurs have to answer.
  7. 7. Is it always about business?If you moved a social asset to where it performed more effectively – then noFor today however the focus is on the entrepreneurs ultimate goal being the delivery of enterprise – and that could equally apply to social enterprise as well as commercial enterprise.
  8. 8. What type of an entrepreneur are you?Are you a NECESSITY ENTREPRENEUR? - “ Im doing this because I want/need to earn more than I am now” - Push action?Are you an OPPORTUNITY ENTREPRENEUR? - “Ive got this great idea for a new whizzbang thats fantastic” - Pull action?Or are you a little of both ?_________________________________Either way, to get to where you want to be, youll have to deploy some or all of the physical, financial, intangible, and human assets that you have control or influence over to make these things happen.
  9. 9. What do entrepreneurs do?First they ensure they know where they are approximately -in relation to where they want to be - in order to know which way to act and when.They follow Abraham Lincolns advice :“The best we might know where we are and whither we are tending, the better we might know what to do and how to do it”N.B. – entrepreneurs are looking for a tending – an indication of the direction of their travel – not an explicit point of arrival.
  10. 10. They understand their assets situational applicabilityEntrepreneurs seem to implicitly / explicitly understand the values that their assets – of whatever class – bring to particular situations.Example (1) : a skilled entrepreneurial chef, instinctively knows the financial value of his skills if he is discussing preparing an elegant banquet for a grand occasion.(2)perhaps an entrepreneur with a vacant shop sees how he might offer some form of property occupancy to a skilled chef who wishes to establish a small exclusive restaurant.(3) A mechanic with a good friend in Japan could import Toyota parts at half price from Japan, sell them for 75% of UK retail price and still make very good profits. ETCETERA.....
  11. 11. Entrepreneurs are motivated and focused MOTIVES MEANS OPPORTUNITY
  12. 12. What are they searching for?SENECA - “ Success lies at the caused intersection of preparation and opportunity” OPPORTUNITY PREPARATION Success !
  13. 13. Finding what theyre looking forPlainly entrepreneurs are MOTIVATEDPlainly they can at least be beginning to find the MEANS at their disposal to engage in enterprise creation ( by auditing their assets)So PREPARATION is relatively easy – and it will get better the more focus is given to it___________________________________________The hard part however is finding OPPORTUNITY .It is hard because OPPORTUNITY is wrapped up in the difficult chaotic world of reality and it hides, it doesnt want to be spottedAnd theres lots of competition out there to find it
  14. 14. OPPORTUNITYLike many things that hide, OPPORTUNITY leaves clues, its most obvious revealing is found in asking the most simple sets of questions about any given / observed situation....(1) WHAT is it about this situation that is causing a PROBLEM? Big problems however tend to generate lots of interest in solving them!(2) Shift down a gear to ask – what is it about this situation that is a limiting CONSTRAINT to something ?(3) Drop lower down the gears asking if I cant see a PROBLEM or an OBVIOUS constraint what makes me feel edgy about this? - are you sensing something about the situation? Whats AWKWARD, DIFFICULT, INCOMPLETE about it? Can you spot any UNDESIRABLE EFFECTS ?(4) In lowest gear ask there a MISMATCH of something or anything that COMPLICATES the way things happen?
  15. 15. Is it a problem or an opportunity? An opportunity to achieve what? “No one will pay you to solve a non-problem.” Vinod Khosla, co-founder, Sun Microsystems opportunity-7549/
  16. 16. How can they realise theseopportunities ? - The O.O.D.A Loop Problems,constraints,undesirable effects,awkward,difficult, incomplete things that cause mismatches and complications are everywhere – OBSERVE !Can the prepared entrepreneur do anything to ,fix them or make them better? Yes – they can begin by ORIENTING
  17. 17. The OODA Loop
  18. 18. The OODA LoopThe OODA loop is a series of iterations ( repeated actions) best used in uncertain environments, it helps enable abductive reasoning and best possible decisions to be made.(1) OBSERVATIONS are made of received outside information and unfolding circumstances(2) The entrepreneur ORIENTS relative to the observations, considers his position based upon his own implicit knowledge experience,interest, assets etcetera and proposes a DECISION hypothesis for the problem being considered/ he reflects upon how that would work upon what he has observed and reconsiders his findings – he iterates that sequence until he feels he has the leanest solution that might just resolve the problem ( a sufficient solution option)(3) He then ACTS upon that option and tests it in its environment
  19. 19. ORIENTINGOrienting is a skill we use every day – but are often unaware of –“The knowledge or awareness of ones location and position either literally ( concerning physical space and time) or with regard to ones figurative place in terms of the social,interpersonal and conceptual framework we observe – in this context it is a cognitive set, a conceptual point of view –that develops a characteristic disposition to react to events in a particular way.”The manner in which entrepreneurs orient relative to what they observe will determine what personal values they derive from observations – and their ultimate success
  20. 20. [] Adaptive Toolbox – Layer 1 “evolved capacities”We now have the makings of the first layer of our toolbox – the beginning of our own evolved capacities(1) the ability to capitalise upon the knowledge and skills we will collect as we move forward – the building of our tacit and explicit skills...algorithms and heuristics(2) When we start to understand the situational applicability of the assets we can control or influence (slide10) we begin to build the tools with which we can evaluate the prospects for us within the opportunities we find (slide 14)
  21. 21. [][] Adaptive Toolbox – Layer 1 “evolved capacities”Knowing where we are and in which direction we are tending, with a comprehensive understanding of the assets we can bring to bear on any situation enables us to begin to consider how to react to events which might present as opportunities to us.…........The more regularly (iteration) we apply ourselves to doing this.......The greater our evolved capacities will become over time
  22. 22. [] What resources do entrepreneurs make use of - other assets?Plainly there will be some entrepreneurs who make it on their own – most have very good relations with lots of people.Lots of people who are also entrepreneurial and are more than willing to collaborate in some way in a good venture.The considered most i mpor tant element here is the thinking found within Dynamic EnvironmentsThese environments are very unusual – “Whilst they are supportive, they are often loosely bounded and consist of changing surroundings within which you must adapt to new situations and overcome unpredictable problems.”
  23. 23. Dynamic environments – are not new – but you have to find them“Future gods and services are discovered,evaluated and exploited when entrepreneurial individuals interact with their environment” Venkatraman (2000)“Enterprise creation is perhaps the key issue in entrepreneurship The enterprise phenomenon involves interaction between the environment and individuals.Entrepreneurship, and thus,enterprise creation stands at the nexus of lucrative opportunity and enterprising individuals.” Katz&Brockhaus (1997)“It is har dly possible to over rate the value of placing humans in contact with per sons dissimilar to themselves and with modes of thought and action unlike those with which they are familiar..such communication has always been and is peculiar in the present age, one of
  24. 24. Entrepreneurial EnvironmentsWhere are they – right here, right now – youre in one________________________________DoeS Liverpool....Jelly!...Open Labs...and moreCheck them against each other are they fulfilling the expectations weve talked thro today?Start your own – but dont keep it – share it – thats the key.What do you want out of them – follow the needs
  25. 25. Environmental GainsSTRATEGIC POSITIONINGGain co-operation and collaboration as needed for any given opportunity that arises – get help – learn – find partners – find more assets – gain emotional support – get favours – exchange products (assets)RECIPROCAL ALTRUISMBe a giver, not just a taker. If you get free unconditional help from the environment, give more back – this increases the stickiness of your strategic position – which is a good thing!
  26. 26. Our AdaptiveToolboxWe know we must deliver to ourselves an audit of the assets we have and view them in multiple ways...could I use my cooking skills to start a café? To open a cookery school? To?? etc etc..we are beginning to build our unique evolved capacitiesWe know we need to engage with others to look for collaboration – to help us enhance our offer to the world at large – we can build our evolving strategic positioningCommunities cannot survive and we cannot survive within them if we dont practise and continue to practise reciprocal altruismTHESE ARE THE BEGINNINGS OF ENTREPRENEURIAL LIFE
  27. 27. Are there any proofs of an Adaptive Toolbox actually working?I cant think of many, or any?, top draw entrepreneurs who dont have a keen eye on how to best use their assets! capacitiesNor can I think of any who arent partnering in some way or another with another entrepreneur! positioningNor can I think of many who dont have a real focus on giving back their help to society and community! altruismSeems like a three nil win?
  28. 28. MONEYGAME Kauffman Sketchbook - "Money Game" You Tube entrepreneurs startup capital is from personal savings # 1 sourceCredit Cards are the second source of capital #2Borrowings,gifts or loans from family & friends are next #3Bank loans – if you have assets / good plan maybeVenture Capital – less than 20% of fastest growth cos use itSubstantive grant funding – not even on scale
  29. 29. MONEY GAMEMost new starts grow organically ( growth fuels more growth) – most find it hard.More than 80% of entrepreneurs do not have venture funds_____________________________Entrepreneurs start lean and stay lean using forms of bricolage to grow – including capital supplies – the art of making something out of nothing
  30. 30. MONEY GAMEMost founders ( entrepreneurs) capitalise their business from their savingsThey also use credit cardsSometimes their family chip in ( or friends)Then cashflow from their business sustains them and enables sufficient growth_______________________________These FOUR sources are the principal source of capital for most new start enterprises
  31. 31. TAKEAWAYS ? #1Think Seek out ADAPTIVE TOOLBOX differently PROBLEMS about your and Find CapacitiesASSETS Opportunities Strategies AltruismOODA Looping Test minimum viable Money is never modelsObserve the problemOrient ITERATE its ALWAYS Fail Forward Fast the DEAL !Decide/Act Think LEAN
  32. 32. Ian Scott ENTREPRISEWorking with entrepreneurs across The Entrepreneurs Co-op Liverpool City Region in the delivery of collaborative enterprise and supporting the call for a collective voice for entrepreneurs and micro enterprise within the region Ian Scott LLB(Hons) LLM 07528 935091 mobile 07077 076830 switchboard F a x : 08715 227901
  33. 33. Real life supportThis presentation and bibliography is also available online at[] Please support DOeS Liverpool[] Get involved with Entreprise[] Join 0151 Knowledge Cafe FINIS ~ discussion/ questions welcome ~