You see, opportunities come to us in one of two ways; effectuation and causation.
And before you react,
the response I most often get to that statement is . . .
“ Huh – – – ‘Effectuation’? ‘Causation’? What the hell are they?”
The easiest way for me to explain it is through an example.
– How do you prepare for dinner at home?
If you were to take a causal approach, you would carefully plan out a menu in advance. Then you’d check your kitchen to see what you have, then go to the store to buy any missing items.
So, in business, this would be like setting a pre-determined goal. Then gathering all the resources you need to achieve it, and then following your predefined plan to achieve it.
If you use the effectual approach, you would look in your refrigerator and pantry, see what you have, and plan your menu accordingly.
In this process, you start with the business resources at hand and then assembles them to build the goal. In other words, the goal is not predefined. This is how you identify entrepreneurial opportunity when the future availability of desirable resources is unknown or unpredictable.
So, effectuation is essentially the opposite of causation.