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by srpeck 3511 days ago
My notes on reading the overview linked in the parent.

Principles of Effectuation:

- Start with your means - possibilities originate from my means

- Focus on the downside risk - what can I afford to lose at each step?

- Leverage contingencies - surprises/"bad" news are clues to new markets (pivot)

- Form partnerships - early pre-commitments from stakeholders for venture co-creation

- Control vs. predict - focus on activities in my control, not predictions

Effectuation process for building new products, markets, and firms:

1. Means: who am I, what I know, whom I know

2. Goals: what can I do?

- Pursue goals within affordable loss

- Leverage surprises - may add to Means and change Goals

3. Interactions: interact with people, enlist co-creation to change original idea

4. Commitments: gather stakeholder/customer commitments to co-created/morphed idea

- New means - new resources add to Means

- New goals - new commitments help crystallize the Goals