1. Entrepreneurial Leadership
2016-02-26
Bryan Guido Hassin
@guido23

2. This is how people believe
entrepreneurship happens
Wunderkind
has divine
inspiration
• Or MBA has
genius insight
Raise huge
VC $$$
• With detailed
business plan
IPO, retire
• Preceded by
hockey stick
growth

3. This is how entrepreneurship
really happens!
Source: AVC.com

4. I’m an entrepreneur / former professor
of entrepreneurial leadership
• Founded/led four startups
– IoT office energy management
– Web energy analytics
– Digital social business card
– Mobile/wireless disaster response
• Educated at Rice (computer science) and IMD
(business)

5. Entrepreneurial Leadership
Currently Broken
Effectuation
Leadership

6. A startup is…
“a temporary organization used to search for a
repeatable and scalable business model” – Steve
Blank
Large Companies
Execute Known
Business Models
Ventures Search for
Unknown Business
Models

7. Startups are not small versions of
large companies
Large Companies
Execute Known
Business Models
Ventures Search for
Unknown Business
Models

8. Large companies are long on
planning...

9. But plans are poor tools for new &
unknown customers & markets
“Everyone’s got a plan until he gets punched in the
face.”
-Mike Tyson

10. Traditional “leadership” doesn’t cut
it in entrepreneurship

11. Entrepreneurial Leadership
Currently Broken
Effectuation
Leadership

12. Let’s first examine what makes
entrepreneurs successful
New research on consistently successful entrepreneurs

13. Expert entrepreneurs start with
means and create opportunities
Fixed
End
Means
1
Means
2
Means
3
Starting
Means
New
End
1
New
End
3
New
End
2
Source: Effectual Entrepreneurship

14. Expert entrepreneurs expand their
means with partnerships
Source: Effectual Entrepreneurship
Your
Means
Original
End
4
Original
End
6
Original
End
5
My
Means
Original
End
1
Original
End
3
Original
End
2
New
End
3

15. Expert entrepreneurs embrace
failure and leverage surprise
Source: Effectual Entrepreneurship

16. Expert entrepreneurs set
affordable loss and control returns
Source: Effectual Entrepreneurship
Entrepreneurs
For a given level of risk, entrepreneurs feel
they
can expand the problem space and
increase returns
For a given level of return, bankers feel
they can
reduce the problem space and decrease
risk.
Step 2
Push creatively
to increase return
Step 2
Try to reduce risk
through insurance, etc.
Step 1
Pick a comfortable
level of risk
Step 1
Pick a target return
Risk
Return
High High
LowLow
Low Low HighHigh
Bankers
Risk
Return

17. Expert entrepreneurs control the
unpredictable future
Source: Effectual Entrepreneurship
Mature
Entrepreneurship

18. Effectual principles can be
illustrated with jars of marbles
?
1: Predictable 2: Risky 3: Unknowable
You win the game by selecting a red marble
Entrepreneurship is like Jar 3

19. Expert entrepreneurs add as
many red marbles as they can
3: Unknowable
And they make friends who have more red marbles to add
You win the game by selecting a red marble

20. Or else they create a new game
where blue marbles win
3: Unknowable
You win the game by selecting a blue marble
If they and their friends only have blue marbles

21. Entrepreneurial Leadership
Currently Broken
Effectuation
Leadership

22. Practice and develop divergent
thinking
• Rather than telling your employees what
to do / where to go
• Ask, “What is possible?”
• Ask, “What else is possible?”
Starting
Means
New End
1
New End
3
New End
2

23. Constant, honest appraisal (self
and 360) to know thy means

24. Foster more collaboration
• Pair programming
• Team projects
Your
Means
Original
End
4
Original
End
6
Original
End
5
My
Means
Original
End
1
Original
End
3
Original
End
2
New
End
3

25. Increase “hit rate” of serendipity
• Push employees out of the building
• Professional development/training
• Engage with customers

26. Question everything until you have
validated evidence
• “Is that a fact or a hypothesis?”
• “Why?”
• “Why not?

27. Be a Secure Base for employees
to create the future
• Person, place, or
thing that will always
be there for you
• Gives you confidence
to take risks
• Identify and lean on
your secure bases
Source: Hostage at the Table

28. Entrepreneurial Leadership
2016-02-26
Bryan Guido Hassin
@guido23