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Effectuation
The Entrepreneurial Method:
Lessons from Expert Entrepreneurs
© 2015 Insights Ignited LLC
2	
copyright 2016 Insights Ignited LLC
“You’re going about this all wrong.”
•  Dr. Saras Sarasvathy
•  Entrepreneur
•  Professor,
University of
Virginia Darden
School of Business
3	
copyright 2016 Insights Ignited LLC
Discovery: Two Worldviews
4	
To the extent we can
control
the future,
we
don’t need to predict
it.
Effectual worldview
(entrepreneurs)
Causal worldview
(managers)
To the extent we can
predict
the future, we
can control
it.
copyright 2016 Insights Ignited LLC
Effectuation is the process for
controlling your outcomes
when the future is unknowable.
5	
copyright 2016 Insights Ignited LLC
An unknowable future…
•  Goals are ambiguous. What to pursue?
–  e.g. Profitability vs. Loyalty
•  There is no data available
–  Truly innovative processes, products, services
•  Data is conflicting
–  Uncertain about what is valid and what is noise
6	
copyright 2016 Insights Ignited LLC
The Effectual Principles
copyright 2016 Insights Ignited LLC
Causal
Effectual
Innovation Landscape
Design Thinking
SWOT
Ideation
Business Planning / Forecasting
Lean Startup
Business Model Canvas
EFFECTUATION
copyright 2016 Insights Ignited LLC
Causal
Effectual
Effectuation Applied
copyright 2016 Insights Ignited LLC
EFFECTUATION
copyright 2016 Insights Ignited LLC

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