Action Trumps Everything

Heidi M. Neck, PhDJeffry A. Timmons Professor of Entrepreneurial [email protected] / @ProfNeck

®ACTION

TRUMPS

EVERYTHING

ARE ENTREPRENEURS BORN?

© 2012 YSF Magazine: Young, Fabulous and Self-employed

6%

Now more than ever, the world needs

entrepreneurs of all kinds who think and act entrepreneurially—

who can transform

opportunity into reality, and

create social and economic

value for themselves and for others.

Behavior & Actions

Behavior of entrepreneurs often

looks idiosyncratic and contradictory

There is strong consistency

in how serial entrepreneurs think.

And it largely explains

their unconventional behavior.

Results

ThinkingBehavior & Actions

Results

Puzzle Challenge

Creating a storyWorking through a maze

Entrepreneurial ThinkingManagerial Thinking

Story vs. Maze

► The end goal is quickly established & definable.

► Resource needs known

► Typically spend some time planning

► Analyzing different paths

► Execute the plan

► Goal achieved

► Move on to next maze

How was the story created?

► Story emerged

► Didn’t really know how to start

► Only choice was to act

► Every person added something new and unplanned

► Built the story together

► Structure emerged over time

► Surprises? Direction changes?

► Action oriented

Creating a storyWorking through a maze

Entrepreneurial ThinkingManagerial Thinking

Story vs. Maze

PREDICTION/

MANAGERIAL

CREATION/

ENTREPRENEURIAL

Small actions

Affordable loss

Iterative

Experimentation

Starting with what you have

Embrace & leverage failure

Collaborative

Big planning

Expected Return

Linear

Optimization

Wait until you get what you need

Avoid failure at all costs

Competitive

To the extent we can predict the future, we can control it.

To the extent we can create the future, we don’t need to predict it

UnknowableKnowable

Implications for Ireland?

Puzzles may be more satisfying, but the world increasingly offers us mysteries.

Treating them as puzzles is like trying to solve the unsolvable – an impossible challenge.

But approaching them as mysteries may make us more comfortable with the uncertainties of our age.

Greg TrevertonDirector of the RAND Center for Global Risk and Security

The Method of Entrepreneurial Thought & Action

Intriguing area, attractive partners

Clear, sharply defined, robust plan

Sufficient to get started

Start with

means at hand

“Pay” only what

you can afford

to lose (Acceptable Loss)

Enroll others to

join your journey

ACTBuild on

What you

learn

ACT. LEARN. BUILD.

Source: Schlesinger et al., (2012) Just Start. HBS Press.

®

When do you stop?

Continue until:• You don’t want it, and/or

• You exceed your Acceptable Loss, and/or

• You prove to yourself it cannot be done.

Source: Saras Sarasvathy