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Rosalynn L. Pangan, RPhAGSB MBAH 10BEntrepreneurship
SARAS D. SARASVATHY                      http://www.youtube.com/watch?v=Ruvb_kGAMYw
GENERAL OVERVIEW
GENERAL OVERVIEW Research Experiment Subjects27 Expert Entrepreneurs {founders ofcompanies from $200M to $6.5B}methodProt...
GENERAL OVERVIEW              Source: www.effectuation.org
CONTEXTFocus: achieving desired                          Focus: using a set ofgoal through a specific                     ...
CONTEXTCausation                            Effectuation                                             “If I can control the...
HEURISTIC VS. ALGORITHMHEURISTIC                     ALGORITHM Problem-solving              step-by-step procedure  tech...
Source:CAUSATION               Effectuation:               Elements of               Entrepreneurial               Experti...
5 PRINCIPLES OF EFFECTUATION
BIRD IN HAND PRINCIPLE                        start with your means                        who I am                     ...
AFFORDABLE LOSS Focus on downside risk limit risk by  understanding what  they can afford to lose  at each step, instead...
LEMONADE                    Leverage contigencies                    Invite the surprise                     factor inst...
PATCHWORK QUILT   Form partnerships   build partnerships with    self-selecting    stakeholders   obtain pre-commitment...
PILOT-IN-THE-PLANE                         Control vs. Predict                         Focus on activities              ...
EFFECTUATIONCYCLE                     Means     Gather stakeholder                                     Goals       commitm...
5 PRINCIPLESSource: www.effectuation.org
SUMMARY          Source: www.effectuation.org
Effectuation
Effectuation
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Effectuation

Effectuation

  1. 1. Rosalynn L. Pangan, RPhAGSB MBAH 10BEntrepreneurship
  2. 2. SARAS D. SARASVATHY http://www.youtube.com/watch?v=Ruvb_kGAMYw
  3. 3. GENERAL OVERVIEW
  4. 4. GENERAL OVERVIEW Research Experiment Subjects27 Expert Entrepreneurs {founders ofcompanies from $200M to $6.5B}methodProtocol Analysis{80 hours of tape, 500 pages of data}theoryEffectuation: Elements ofEntrepreneurial Expertise, 2005 Source: www.effectuation.org
  5. 5. GENERAL OVERVIEW Source: www.effectuation.org
  6. 6. CONTEXTFocus: achieving desired Focus: using a set ofgoal through a specific evolving means to achieveset of given means new and different goals Source: www.effectuation.org
  7. 7. CONTEXTCausation Effectuation “If I can control the “If I can predict future, I do not need to the future, I can predict it” control it” Source: www.effectuation.org
  8. 8. HEURISTIC VS. ALGORITHMHEURISTIC ALGORITHM Problem-solving  step-by-step procedure technique that involves with a finite number of creating a speculative steps that seeks a formulation and self-led specific outcome investigation to reach some desired outcome.  recursive most quintessential heuristic is “trial and error.” Source: www.effectuation.org
  9. 9. Source:CAUSATION Effectuation: Elements of Entrepreneurial Expertise By Saras D. SarasvathyVS Printed in 2008EFFECTUATION
  10. 10. 5 PRINCIPLES OF EFFECTUATION
  11. 11. BIRD IN HAND PRINCIPLE  start with your means  who I am  what I know  whom I know  imagine possibilities that originate from their means Source: www.effectuation.org
  12. 12. AFFORDABLE LOSS Focus on downside risk limit risk by understanding what they can afford to lose at each step, instead of seeking large all-or- nothing opportunities choose goals and actions where there is upside even if the downside ends up happening Source: www.effectuation.org
  13. 13. LEMONADE  Leverage contigencies  Invite the surprise factor instead of making “what-if” scenarios to deal with worst-case scenarios  experts interpret “bad” news and surprises as potential clues to create new markets Source: www.effectuation.org
  14. 14. PATCHWORK QUILT Form partnerships build partnerships with self-selecting stakeholders obtain pre-commitments from these key partners early on in the venture, experts reduce uncertainty and co-create the new market with its interested participants Source: www.effectuation.org
  15. 15. PILOT-IN-THE-PLANE  Control vs. Predict  Focus on activities within their control  expert entrepreneurs know their actions will result in the desired outcomes  the future is neither found nor predicted, but rather made Source: www.effectuation.org
  16. 16. EFFECTUATIONCYCLE Means Gather stakeholder Goals commitments Interact
  17. 17. 5 PRINCIPLESSource: www.effectuation.org
  18. 18. SUMMARY Source: www.effectuation.org

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