smb 22052014 corina kuiper health venture check

The Effectual Catalyst

Masterclass Venture Health Check Spiegeltje, spiegeltje aan de wand...

Corina Kuiper

22 May 2014

© The Effectual Catalyst


May 22nd, 2014 © The Effectual Catalyst 2


Mirror, Mirror, on the wall…….



…how to keep yourself honest



…but how do other people look at you compared to others



The illusion that we make our own decisions

68

32

16

0

84


Source: Dan Ariely


PREDICTABLY



How your environment impacts your behavior

Source: Dan Ariely



…so if you are an apple, you don’t want to be compared with an orange



You need a common language!



Venture Framework

• Innovation type – which changes are needed?

• Age – what should be your deliverables?

• Entrepreneurial behavior – how should you behave?


http://www.tomtunguz.com/images/image_123_393363339


Each types of innovation requires its on approach

Granularity of Innovation is courtesy of Fred van Ommen (Bizz Innovation Group) Corina Kuiper (The Effectual Catalyst)



emerging

growth

mature

decline

Disruptiveness (proposition is…)

Mar

ket

life

cyc

le (S

egm

ent/

geo

)

Defend market share & margin,

outsourcing

improved product

new in category

new adjacent category

new to world

New Category Existing category

Granularity of Innovation

Granularity of Innovation is courtesy of Fred van Ommen (Bizz Innovation Group) Corina Kuiper (The Effectual Catalyst)

See presentation SMB

April 2013



HOW OLD ARE YOU ? May 22nd, 2014 © The Effectual Catalyst 15


A Staged Process for Successful Venture Development

Each phase has its own specific characteristics and therefore requires a different way of working, organization set-up, culture/mindset and

performance indicators

Time

5. Market Calibration

4. Beta 3. Alpha 2. Seed 1. Pre - seed

Expanding 5. Market Calibration

4. Beta 3. Alpha 2. Seed 1. Pre-Seed Steady State

Decline Ideation

Venture phase Business Creation

Research phase

Established business Business

Management/Operations

Ma

turi

ty le

vel



Stages and Gates

• Length of each stage and the funding needs will be radically different depending e.g. on the sector the venture is operating in

• Gate reviews are important milestones and should have qualified (external) assessors

• The greater the degree of disruption ( innovation, market, channel), the longer the period of market development

• New ventures live and die on results, not process

• Venturing is Darwinian, survival of the fittest

Expand/

Capture

the Value


4. Beta 3. Alpha 2. Seed Ideation

Gates

1. Pre-Seed



How do I know my age

Expand/

Capture

the Value



Gates

1. Pre-Seed

• Use a venture framework that: Uses “best practice” research in internal and external venture

development Describes clearly what is needed at the end of each stage

• Don’t perform the healthy check by yourself but ask

experienced people who are able to do ‘pattern recognition’



Dimensions of Venture Development

Venture Framework is courtesy of Fred van Ommen (Bizz Innovation Group) Corina Kuiper (The Effectual Catalyst)

If you want to know more about the Venture Framework, please contact Corina Kuiper



In different flavours available



In different flavours available Publiek Private Samenwerkingen

(Centre of Expertise, Centra voor Innovatief Vakmanschap)

Start-ups

Corporate Venturing Venture as well as portfolio

Executive Master of Business Innovation in Health



SMALL EXERCISE

Matching stages

Expand/

Capture

the Value



Gates

1. Pre-Seed



jjk


Ventures act as grown-ups



Think as an entrepreneur



Entrepreneurs constantly make decisions and take action

How do they do that?

Are there any universal methods or principles

they use?

To answer these questions, Dr. Saras Saravathy, a cognitive scientist, conducted a study * of expert entrepreneurs

The results? EFFECTUATION May 22nd, 2014 © The Effectual Catalyst 25


Managerial Thinking (Causal)

Given Goal

M1 M2 M3 M4 M5

Select between given means to achieve a pre-determined goal

Given means



Entrepreneurial Thinking (Effectual)

Imagined ends

Imagining a possible new end using a given set of means

Given means

M1

M2

M3

M4

M5



Elements of Entrepreneurial Thinking & Action

Effectuation consists 4 principles and of a unique world view

Assess your Assets Limited your losses

Pick your Partners Leverage surprises



1. Bird in hand principles

When expert entrepreneurs set out to build a new venture, they start with their means: who I am, what I know, and whom I know. Then, the

entrepreneurs imagine possibilities that originate from their means.



1. Starting point for the venture

Goal oriented:

Goals define the resources required for a particular venture

Means oriented

Own means / resources / contacts define potential goals


C:/Users/Corina/Videos/You Tubes/Daniel Freitag.avi


2. Affordable loss principle

Expert entrepreneurs limit risk by understanding what they can afford to lose at each step, instead of seeking large all-or-nothing opportunities.

They choose goals and actions where there is upside even if the downside ends up happening.



2. Risk perception

Focus on expected returns

Venture should maximize risk adjusted return

Focus on Affordable loss

Venture should not risk more resources than can be afforded to be lost


http://on.wsj.com/KPo5Rf?mod=wsj_video_email


3. Lemonade principle

Expert entrepreneurs invite the surprise factor. Instead of

making “what-if” scenarios to deal with worst-case scenarios,

experts interpret “bad” news and surprises as potential clues

to create new markets. May 22nd, 2014 © The Effectual Catalyst 33


3. Attitude towards contingency

Avoidance

Planning and focusing on goals help to avoid contingencies

Leverage

Contingencies provides opportunities that can be used to own advantage



4. Crazy quilt principle

Expert entrepreneurs build partnerships with self-selecting

stakeholders. By obtaining pre-commitments from these key

partners early on in the venture, experts reduce uncertainty

and co-create the new market with its interested participants.

EARLY YES’s



4. Attitude towards outsides

Potential competitors

Protection of ideas is important, as one needs to position oneself in competitive environment

Potential partners

Partnerships emerge as stakeholders commit resources to the common venture while influencing its development



5. Pilot-in-the-plan principle

By focusing on activities within their control, expert entrepreneurs know their actions will result in the desired outcomes. An effectual worldview is rooted in the belief that the future is neither found nor predicted, but rather made.



5. View of the future

Forecast

Environment is externally given, forecast help to adapt to it

Co-create

Prediction is not possible, since future environment depends on own actions


C:/Users/Corina/Videos/You Tubes/A Frozen Hotel.avi


To the extent I can predict

the future, I can control it.

To the extent I can co-create

the future, I don’t need to

predict it.



Mirror yourself!



The next time you look it the mirror


smb 22052014 corina kuiper health venture check

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