The Effectual mindset is essential for entrepreneurs who understand that the future is unknowable and unpredictable and who want to make decisions which guide them towards success. This is an essential foundation for Momentum Scaling A summary of Effectuation (Saras Sarasvathy). Presented to Ville-Marie Toastmasters (PERINF L1 Project 3) 22 February 2018 (c) 2018 Davender Gupta. All rights reserved. Permission to download for personal use only

1. Effectuation
Managing Uncertainty
by Optimizing Opportunity
Davender Gupta, MS, MBA
The Scaleup Project
davender@davender.com
514-448-1894
©2018 Davender Gupta. All rights reserved. 180222 davender@davender.com
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2. Where Effectuation Comes From
2©2018 Davender Gupta. All rights reserved. 180222 davender@davender.com
Dr. Saras Sarasvathy (2001)
 “What commonalities and differences exist in the
decision-making process of a group of expert
entrepreneurs?”
 “In the face of non-existent or not-yet-existent
markets, what underlying beliefs about the
predictability of the future influence their decisions
as they build a new venture?”

3. An Idea Is Not A Goal
•Causal =
Assumes the future
is knowable
•Effectual =
Assumes the future
is unknowable
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goal
means
Search for
the means
to achieve a
stated goal
Start with
the means
at hand to
design the
outcome
©2018 Davender Gupta. All rights reserved. 180222 davender@davender.com

4. Strategy is How You Make Decisions
• How your choices align with vision, mission, values
Suitable
• How your choices fit success and risk criteria
Acceptable
• How your choices can be executed with available resources
Feasible
• How your choices manage uncertainty by optimizing opportunity
Effectual
4©2018 Davender Gupta. All rights reserved. 180222 davender@davender.com

5. Effectuation: A Set Of Decision-Making Principles
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What can you do with what you have, what you know and
who you are
Focus on how to minimize possible losses
Collaborate with partners who provide pre-commitment
Surprises are opportunities to explore new possibilities
The future cannot be predicted but can control some
determining factors Source: www.effectuation.org
©2018 Davender Gupta. All rights reserved. 180222 davender@davende.com

6. Impact of Effectual Approach to Scaling
•Delay seeking investors to fund initial go-to-
market because the need to generate ROI
locks into a causal mindset
•First find customers who are willing to
collaborate in pre-production prototype
development through investment
•Establish rapid build-measure-learn loops
6©2018 Davender Gupta. All rights reserved. 180222 davender@davender.com

7. Contact me!
Davender Gupta
Venture Strategist and Co-Founder
The Scaleup Project
davender.com
facebook.com/coachdavender
linkedin.com/in/coachdavender
davender@davender.com
©2018 Davender Gupta. All rights reserved. 180222 davender@davender.com
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