1) Dr. Mauer is a researcher in effectuation and entrepreneurship who discusses effectuation as an observable and teachable method for entrepreneurs to cope with uncertainty. 2) Effectuation focuses on means-orientation rather than goal-orientation, affordable loss rather than expected returns, and leveraging contingencies rather than risk management. 3) Research has shown that early-stage technology ventures using effectuation principles show quicker development than those using traditional management approaches. Incubators can help teach effectual mindsets and processes.

1. Learning from entrepreneurial experts
for incubation: Effectuation
Dutch Incubator Symposium
Maastricht
22.02.2013
Dr. René Mauer
RWTH Aachen LS WIN: mauer@win.rwth-aachen.de
Effectuation Intelligence: mauer@effectuation-intelligence.de
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2. Who’s talking?
René Mauer
• PhD at RWTH Aachen on effectuation and unplanned behavior
in general
• 2006-2008 project manager of the RWTH Aachen center for
entrepreneurship
• Co-owner of family business, founder of tech start-up
• Active researcher in the field of effectuation (Aachen is leading
research hub on effectuation in German-speaking countries)
• Partner of the international expert network Effectuation
Intelligence that puts the entrepreneurial method to practice
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3. What makes entrepreneurs successful?
Visions?
Talent and gifts?
Circumstances?
Luck?
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4. (c) M.Faschingbauer 2010 © 4

5. Management
Goal orientation
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6. Management
Expected return
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7. Management
Risk management
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8. Management
Positioning
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9. Effectuation – What‘s that?
Effectuation
State-of-the-art entrepreneurship
research
Elements of expertise by experienced
entrepreneurs
Method for coping with uncertainty
Observable, teachable, learnable
Saras D. Sarasvathy, Darden School Based on four principles that are tied into
of Business, University of Virginia
a process
Flips the assumptions of classic
management upside down
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10. Management Effectuation
Goal orientation Means orientation
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11. Management Effectuation
Expected return Affordable loss
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12. Management Effectuation
Risk management Leveraging contingencies
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13. Management Effectuation
Positioning Self-selecting partners
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14. Approaching the future entrepreneurially:
Shaping instead of predicting
Management logic Effectuation logic
What we can predict, we can control. What we can control, we do not need to predict.
What should we do? What can we do?
(based on pre-existing and reliable knowledge) (based on individual means)
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15. Classic management
gather
analyse decide plan resources act
Idea
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16. Entrepreneurial expertise
(Effectuation)
Means and resources increase
Alternatives New
means
What are What can Whom do Who joins
the means? I do now? I talk to? In?
New
goals
Means
Ideas become more precise
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17. Typical reactions at this point
I finally know how to explain my
chaotic style! Interesting that it took so long for
researchers to find out what I have
known as an entrepreneur/incubation
manager for a long time.
Great! Finally a method that not
only asks me to write business
plans. Oh no, I think I stick with the method
that lets me write business plans.
What is effectuation good for?
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18. When does effectuation add value?
Existing New
products products
Existing
market
New „Suicide
market quadrant“
Ansoff matrix
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19. Life cycle of innovative projects
(e.g. new companies, markets, products, )
knowledge
Uncertainty
t
Classic management
Effectuation
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20. What makes entrepreneurs successful?
Visions?
Talent and gifts?
Circumstances?
Luck?
A good mix of EFFECTUATION and
management?
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21. Some local research: Early-stage technology ventures
(Aachen, 2011)
-80% -60% -40% -20% 0% 20% 40% 60% 80%
3%
-4%
4% -31%
31% -22%
22% -23%
23% 3% 14% 1% Pan
3%
-7%
7% -24%
24% -17%
17% -23%
23% 6% 17% 3% Calypso
2% 2%
-8%
8% -20%
20% -18%
18% -19%
19% 30% 1% Methone
Gestation
Reifungs- 3%
geschwindigkeit
speed 4%
-4% 19%
-19% 12%
-12% -19%
19% 8% 27% 8% Greip
4%
-8%
8% -19%
19% -22%
22% -16%
16% 11% 17% 1% Atlas
-3%
3% -22%
22% -8%
8% 15%
-15% 6% 6% 36% 5% Mimas
1%
-6% -13%
6% 13% -8%
8% -15%
15% 10% 39% 9% Narvi
-7%
7% -14%
14% -13%
13% -23%
23% 12% 6% 22% 3% Bestla
Effectuation Causation
Investition Interaktion Reaktion Aktion Aktion Reaktion Interaktion Investition
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22. Some local research: Early-stage technology ventures
(Euregio, 2012)
Causation Effectuation
Big Picture: Expectations met!
Causation Effectuation
Looking closely: Back and forth!
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23. Conclusion
- Effectuation is the entrepreneurial method, specified
in 4 principles
- Depending on the degree of uncertainty it can be the
toolbox of choice
- Ventures following the principles show quicker
gestation than others
- Incubators might want to consider spending energy on
teaching the effectual mindset and process
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24. (c) M.Faschingbauer 2010 © 24

25. Thank you very much! Literature:
Internet: Faschingbauer, M. (2010):
Effectuation
Wie erfahrene Unternehmer
German language platform: denken, entscheiden und
„EFFECTUATION Forschung & Praxis“ handeln. Schäffer-Poeschel
www.effectuation.de|.at|.ch (Fachbuch Praxis)
Dutch language platform:
www.effectuation.nl Blekman, T. (2011):
Corporate Effectuation – Vanaf
International expert network: nu is ondernemer-schap echt te
„Effectuation Intelligence“ leren!
www.effectuation-intelligence.biz
www.effectuation-intellingence.nl
Sarasvathy, S.D. (2008):
Effectuation
Global platform: Elements of Entrepreneurial
„Society for Effectual Action (SEA)“ Expertise. Edward-Elgar
www.effectuation.org (Science)
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