Effectuation and Speed Boats
Who said entrepreneurship was only for entrepreneurs?
Ask ten people where entrepreneurs work, and most will say they run their own businesses. Few, if any, would mention entrepreneurs working as employees in large organizations. By the traditional definition, entrepreneurs and employees seem worlds apart.
But that changed with the groundbreaking research of Professor Saras Sarasvathy, who showed that entrepreneurship is a science, a mindset and methodology that can be learned and applied in any context.
Whether someone wants to start their own business or thrive as an employee, entrepreneurial thinking is invaluable. For large organizations, encouraging employees to think and act like entrepreneurs can unlock incredible value. This science is called Effectuation.
Here’s how I applied the Effectuation methodology to help a client in the medical industry:
The company faced a challenge, team members lacked the motivation to initiate new projects, and when projects did start, especially bold or unconventional ones, they were often abandoned. The same small group of employees was repeatedly tasked with new initiatives, leading to burnout and stalled progress. The company needed a fresh approach to identify new talent for these projects and a framework to ensure momentum and results.
Here’s how we tackled the challenge step by step:
Step 1: We started by clarifying the company’s strategic ambitions for the coming year and aligning the executive team on a clear and focused scope. This ensured everyone was on the same page about priorities and goals.
Step 2: Next, we organized a one-day event with a larger group of employees to introduce them to the principles of Effectuation. This interactive session helped demystify entrepreneurial thinking and made it accessible to everyone, regardless of their role or background.
Step 3: During the event, employees were invited into a creative process to generate ideas and self-select projects they were passionate about pursuing. These projects were structured as “speedboats,” with employees volunteering as captains or team members.
To support the speedboats, we introduced participants to a rapid-results framework and innovation methodologies designed to help them make steady progress. These tools created structure and momentum, ensuring the teams stayed on track and delivered results within fixed time frames.
Three key outcomes thrilled my client:
New entrepreneurial talent emerged—employees with a natural drive for innovation stepped up, providing a fresh pool of talent for future initiatives.
A wave of new ideas was generated, many of which aligned with the company’s strategic ambitions.
A tested process combining Effectuation and rapid-results frameworks proved effective, enabling teams to make measurable progress in predictable time boxes that executives could easily track.
This approach not only revitalized the organization’s innovation efforts but also built a foundation for sustained entrepreneurial thinking across the company.
If you want to generate the same kind of energy and momentum into your organization, let’s discuss Effectuation.