1. Solvay European Summer School 2010 ENTREPRENEURSHIP Effectuation and Intrapreneurship Olivier Witmeur Bernheim Chair of Entrepreneurship

3. Introduction to Effectuation

4. Managerial Thinking  Causal Reasonning Selecting between given means to achieve a predefined goal Solvay Summer School 2010 - Olivier Witmeur |

5. Strategic Thinking  Creative Causal Reasoning Generating new means to achieve pre-determined goals Solvay Summer School 2010 - Olivier Witmeur |

6. Entrepreneurial Thinking  Effectual Reasoning Imagining possible new ends using a given set of means Solvay Summer School 2010 - Olivier Witmeur |

9. WHAT IS EFFECTUATION? How do you control a future you cannot predict? Solvay Summer School 2010 - Olivier Witmeur | Causal Logic Visionary Logic Adaptive Logic Low High Low High PREDICTION CONTROL = Non-predictive control

11. Solvay Summer School 2010 - Olivier Witmeur | CAUSAL EFFECTUAL

13. THE EFFECTUAL DYNAMIC AND THE BUILDING THE EFFECTUAL NETWORK Solvay Summer School 2010 - Olivier Witmeur | Who I am What I know Whom I know What can I do? (Affordable loss) Effectual stakeholder commitments Interactions with other people CO-CREATION

14. DYNAMICS OF THE EFFECTUAL NETWORK Solvay Summer School 2010 - Olivier Witmeur | Who I am What I know Whom I know What can I do? (Affordable loss) Effectual stakeholder commitments Interactions with other people New means New goals Expanding cycle of resources Actual Means Converging cycle of constraints Actual courses of Action possible New market / new firm

15. Cognitive Distribution of Managerial and Entrepreneurial Thinking Effectual Causal Low Low High High Expert Entrepreneurs Experienced VCs Angels Organic Growth Leaders Entrepreneurial Large Firms Corporate Managers Novice VCs Novice Entrepreneurs | Solvay Summer School 2010 - Olivier Witmeur

16. FROM CAUSATION TO EFFECTUATION … …AND VICE-VERSA Solvay Summer School 2010 - Olivier Witmeur | TIME AND EXPERIENCE LOGIC Causal Effectual Novice entrepreneur Expert entrepreneur Start-up firm Large firm Shift in logic necessitated by firm growth Entrepreneurs do not always manage to bridge this gap Moderating effect of resources

17. Entrepreneurs vs Managers? Introduction to Intrapreneurship

18. ENTREPRENEURS vs MANAGERS: ENTREPRENEURSHIP AS A BEHAVIORAL PHENEMENON (Adapted from H. Stevenson) | Solvay Summer School 2010 - Olivier Witmeur ENTREPRENEUR MANAGERS Strategic Orientation Driven by perception of opportunity Driven by resources currently controlled Commitment to opportunity Revolutionary with short duration Evolutionary of long duration Commitment of resources Multistaged with minimal exposure at each stage Single-staged with complete commitment upon decision Control of resources Episodic use of rent of required resources Ownership or employment of required resources Management structure Flat with multiple informal networks Formalized hierarchy Reward philosophy Value-driven Performance-based Team-oriented Security-driven Resource-based Promotion-oriented

19. ENTREPRENEURS AND INTRAPRENEURS Solvay Summer School 2010 - Olivier Witmeur | Lifestyle Entrepreneurs Intrapreneurs Owner-Manager in Small Firms Managers in Large Firms Entrepreneurs

24. ORGANIZATIONAL FRAMEWORK FOR INTERNAL VENTURING Solvay Summer School 2010 - Olivier Witmeur | Adapted from Burns, 2008 Strategic Importance Very important Uncertain Not important Operational relatedness Unrelated Special BU Special BU Spin-off Partly related New department New department Contracting Strongly related Direct Integration New department Contracting

26. Solvay Summer School 2010 - Olivier Witmeur | Q&A [email_address] www.olivier-witmeur.net

27. Back-up on the Business Plan

29. Solvay Summer School 2010 - Olivier Witmeur | Fits and gaps BUSINESS PLAN From Jeffry A. Timmons – New Venture Creation Opportunity Resources Team Communication Creativity Conviction

31. BUSINESS PLAN STRUCTURE Management Team | Solvay Summer School 2010 - Olivier Witmeur Business Model Vision Production & Supply Chain Sales & Marketing Research & Development Organization & Administration Financial Plan Financial Plan Opportunity Market & Industry Financing scheme Sensibility analysis Milestones Stages Risk analysis Plan B No predefined best structure