Group Size
?
1.) Small group (teams of 4-6)
2.) Individual Task
3.) Large Group
4.) Any
Any
Learning Environment
?
1.) Lecture Theatre
2.) Presentation Space
3.) Carousel Tables (small working group)
4.) Any
5.) Outside
6.) Special
Any
QAA Enterprise Theme(s)
?
1.) Creativity and Innovation
2.) Opportunity recognition, creation and evaluation
3.) Decision making supported by critical analysis and judgement
4.) Implementation of ideas through leadership and management
5.) Reflection and Action
6.) Interpersonal Skills
7.) Communication and Strategy
2Opportunity recognition‚ creation and evaluation
For many years Business Plans have been considered as the main tool to encourage students to explore the opportunities for solutions to commercial problems. What has emerged from the work of Saras Sarasvathy, Steve Blank and many others (see references) is that planning comes before the Business Plan. Saras Sarasvathy has introduced the concept and approach to planning; Effectuation.
Practice with The Effectuation Approach makes the user more skilled and confident.
While it might be premature to hail the death of the Business Plan in undergraduate and post graduate curricula, we can certainly claim that its time is getting short. Thanks to the work of Alex Osterwalder and Yves Pigneur, supported by Steve Blank and many others, the Business Model Canvas as a tool for planning has taken over in most curricula.
In addition, the work of Saras Sarasvathy and Colin Jones around how expert entrepreneurs actually behave and operate has led to the conceptual approach of Effectuation. Anna Kirketerp has combined a lot of the research into what makes successful entrepreneurs into her PUSH model (see references) which assists those of us in the teaching and learning space of Business Start-up.
However it is vital that students begin to practice how to use effectuation. This simple activity can get you started.
Using the ‘Saras Sarasvathy - What is Effectuation’ handout as a starter (see resources / references) discuss the key concepts and make sure that the group is clear on the principles. You can introduce the Saras Sarasvathy findings from successful entrepreneurs, or explore the Colin Jones “Resource Profile”.
The Resource Profile consists of three overlapping domains for each student/entrepreneur;
Students in small groups should compile their individual and then collective “Resource Profiles”. These will be unique complex and unexpected bundles of individuals, knowledge and information.
The task is for each small team to look to act as consultants to solve a unique problem.
The challenge is to come up with a proposal (as consultants) to a group of businesses who have decided that they want to create a new joint venture that they can exploit and grow their own existing businesses.
The facilitator/tutor then invites the group to select the three businesses that will join together to establish this new JV. This is achieved by the facilitator/tutor using an old fashioned Yellow Pages or Thompsons Local directory. Simply ask for three numbers between the first page and last page. (You can ask for three times (locations on a clock – to help locate more clearly on the directory page the chosen ventures/businesses). The three page numbers and locations on these pages will allow the facilitator / tutor to identify three businesses.
The facilitator/tutor then shares these business names with the group and invites the group to use “Effectuation” and their “Resource Profiles” to develop a Joint Venture for the businesses and to present their thoughts to the rest of the group at the end of the session.
I have used this activity with numerous groups of nascent entrepreneurs over the past few years. The idea is to force the students to realise that they bring more to the problem and potential solutions than their “Degree” and possibly “energy”. Serial entrepreneurs maximise the networks and contacts they have developed. Effectuation is the only way to create a new venture. Established businesses can use the theories taught on MBAs, Start-ups need to be fleet of foot and employ the principles of Effectuation if they are to survive.
At the end of the session the leaner will;
Appreciate that they are more than a single dimensioned individual – through the creation of their Resource Profile
Appreciate the power of Effectuation and its impact in business start-ups
Understand how to draw on the power of the team and each individual’s unique Resource Profile when working on shared problems.
Key authors: Saras Sarasvathy, Steve Blank, Alex Osterwalder
Further Reading;
