Effectuation

Question 1

What are the 5 key principles of effectuation?

Answer 1

1- bird-in-hand
2- affordable loss
3- leverage surprises
4- patchwork quilt
5- pilot in the plane

Question 2

Bird-in-hand principle

vs causality

Answer 2

“ A bird in the hand is worth two in the bush”

Start with your means: who I am - who I know - what I know

(vs given goals)

Question 3

Affordable loss principle

vs causality

Answer 3

‘Baby steps’

Calculate downside potential and risk no more than you can afford to lose

(vs calculate upside potential and pursue the best opportunity)

Question 4

Leverage surprises principle

vs causality

Answer 4

“ When you get lemons, make lemonade”

Determine how you can leverage unexpected outcomes.

(vs avoid surprises)

Question 5

Patchwork quilt principle

vs causality

Answer 5

“Making something beautiful out of scraps, together.”

Build your market together with customers, suppliers and even potential competitors

(vs set up transactional relationships with customers and suppliers)

Question 6

Pilot in the plane principle

vs causality

Answer 6

“The futures is not found or predicted, but made by those engaged”

To the extent we can control the future, we do not need to predict it.

(vs to the extent we can predict the future, we can control it)