Adaptive toolbox v3.1

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DOeS March 12 2012
Entrepreneurs Why its done Whats done
What they do and
how to do it

How to do it Threads that Notes/Links/Co
run through ntact
the topic

Building an Adaptive Toolbox

WHAT TO DO HOW TO DO IT

What's an Adaptive Toolbox?
Arguably its the entrepreneurs essential helper, it builds upon the
mental models, thinking patterns and rules of thumb that an
entrepreneur adopts through life. Its roots lie in the dynamics of
human social interaction
It contains the often self designed instruments that we adapt to
help make sense of the broad spectrum of issues that confront
us on our unique life journeys – the toolbox adapts day by day
It has three layers [] evolved capacities [] strategic positioning
[] reciprocal altruism
We'll see if the beginnings of your own adaptive toolbox can
be started today

Overview

How to start building an Adaptive Toolbox
__________________________________
FAQ's
About Entrepreneurs?
What would be their 'Job Description'?
What are they looking for? - Why?
What resources do they use to find what they're looking for?
Money & various futures
At the end of this - Whats in our Toolbox?

Real life support
This presentation and bibliography is also available online at
http://ianscott.posterous.com/does-adaptive-toolbox#
[] Please support DOeS Liverpool
[] Get involved with Entreprise cartulary@gmx.com
[] Join 0151 Knowledge Cafe

FINIS
~ discussion/ questions welcome ~

What's an entrepreneur ?
There are thousands of definitions – all different !
I like one of the oldest ....entrepreneurs undertake......

“ Activities involving the movement of
assets from areas of low-productivity
to areas of high-productivity”
Assets can be physical, financial, intangible, and human, the
question is “How can we use those assets in a different
perhaps more productive way?”

that's the big question entrepreneurs
have to answer.

Is it always about business?

If you moved a social asset to where it performed
more effectively – then no

For today however the focus is on the
entrepreneurs ultimate goal being the delivery
of enterprise – and that could equally apply to
social enterprise as well as commercial
enterprise.

What type of an entrepreneur are you?

Are you a NECESSITY ENTREPRENEUR? - “ I'm doing this
because I want/need to earn more than I am now” - Push
action?
Are you an OPPORTUNITY ENTREPRENEUR? - “I've got
this great idea for a new whizzbang that's fantastic” - Pull
action?
Or are you a little of both ?
_________________________________
Either way, to get to where you want to be, you'll
have to deploy some or all of the physical,
financial, intangible, and human assets that you
have control or influence over to make these
things happen.

What do entrepreneurs do?

First they ensure they know where they are 'approximately' -in
relation to where they want to be - in order to know which way
to act and when.They follow Abraham Lincolns' advice :

“The best we might know where we are and whither
we are tending, the better we might know what to
do and how to do it”

N.B. – entrepreneurs are looking for a 'tending' – an indication
of the direction of their travel – not an explicit point of arrival.

They understand their assets
'situational applicability'
Entrepreneurs seem to implicitly / explicitly understand
the values that their assets – of whatever class – bring
to particular situations.
Example (1) : a skilled entrepreneurial chef, instinctively knows
the financial value of his skills if he is discussing preparing an
elegant banquet for a grand occasion.
(2)perhaps an entrepreneur with a vacant shop sees how he might
offer some form of property occupancy to a skilled chef who
wishes to establish a small exclusive restaurant.
(3) A mechanic with a good friend in Japan could import Toyota
parts at half price from Japan, sell them for 75% of UK retail
price and still make very good profits. ETCETERA.....

Entrepreneurs are motivated and
focused

MOTIVES

MEANS OPPORTUNITY

What are they searching for?
SENECA - “ Success lies at the caused intersection of
preparation and opportunity”

OPPORTUNITY PREPARATION

Success !

Finding what they're looking for
Plainly entrepreneurs are MOTIVATED
Plainly they can at least be beginning to find the MEANS at their
disposal to engage in enterprise creation ( by auditing their
assets)
So PREPARATION is relatively easy – and it will get better the
more focus is given to it
___________________________________________
The hard part however is finding OPPORTUNITY .
It is hard because OPPORTUNITY is wrapped up in the difficult
chaotic world of reality and it hides, it doesn't want to be
spotted
And there's lots of competition out there to find it

OPPORTUNITY
Like many things that hide, OPPORTUNITY leaves
clues, its most obvious revealing is found in asking the
most simple sets of questions about any given /
observed situation....
(1) WHAT is it about this situation that is causing a PROBLEM? Big
problems however tend to generate lots of interest in solving them!
(2) Shift down a gear to ask – what is it about this situation that is a
limiting CONSTRAINT to something ?
(3) Drop lower down the gears asking if I can't see a PROBLEM or an
OBVIOUS constraint what makes me feel edgy about this? - are
you sensing something about the situation? What's AWKWARD,
DIFFICULT, INCOMPLETE about it? Can you spot any
UNDESIRABLE EFFECTS ?
(4) In lowest gear ask ..is there a MISMATCH of something or anything
that COMPLICATES the way things happen?

Is it a problem or an opportunity?
An opportunity to achieve what?

“No one will pay you to solve
a non-problem.”
Vinod Khosla, co-founder, Sun Microsystems
http://www.cosmolearning.com/video-lectures/any-big-problem-is-a-big-
opportunity-7549/

How can they realise these
opportunities ? - The O.O.D.A Loop

Problems,constraints,undesirable
effects,awkward,difficult, incomplete things that
cause mismatches and complications are
everywhere – OBSERVE !
Can the prepared entrepreneur do anything to
,fix them or make them better?

Yes – they can begin by ORIENTING

The OODA Loop
The OODA loop is a series of iterations ( repeated actions) best
used in uncertain environments, it helps enable abductive
reasoning and 'best possible' decisions to be made.
(1) OBSERVATIONS are made of received outside information
and unfolding circumstances
(2) The entrepreneur ORIENTS relative to the observations,
considers his position based upon his own implicit knowledge
experience,interest, assets etcetera and proposes a DECISION
hypothesis for the problem being considered/ he reflects upon
how that would work upon what he has observed and
reconsiders his findings – he iterates that sequence until he
feels he has the leanest solution that might 'just' resolve the
problem ( a sufficient solution option)
(3) He then ACTS upon that option and tests it in its environment

ORIENTING
Orienting is a skill we use every day – but are often unaware of –
“The knowledge or awareness of one's location and position either
literally ( concerning physical space and time) or with regard to
ones figurative place in terms of the social,interpersonal and
conceptual framework we observe – in this context it is a
cognitive set, a conceptual point of view –
that develops a characteristic disposition to react to
events in a particular way.”
The manner in which entrepreneurs orient
relative to what they observe will determine
what personal values they derive from
observations – and their ultimate
success

[] Adaptive Toolbox – Layer 1
“evolved capacities”

We now have the makings of the first layer of our
toolbox – the beginning of our own evolved
capacities
(1) the ability to capitalise upon the knowledge and skills we
will collect as we move forward – the building of our tacit
and explicit skills...algorithms and heuristics
(2) When we start to understand the situational applicability
of the assets we can control or influence (slide10) we begin
to build the tools with which we can evaluate the prospects
for us within the opportunities we find (slide 14)

[][] Adaptive Toolbox – Layer 1
“evolved capacities”
Knowing where we are and in which direction we
are tending, with a comprehensive
understanding of the assets we can bring to
bear on any situation enables us to begin to
consider how to react to events which might
present as opportunities to us.
…........The more regularly (iteration) we apply
ourselves to doing this.......
The greater our evolved capacities
will become over time

[] What resources do entrepreneurs
make use of - other assets?
Plainly there will be some entrepreneurs who make it on their
own – most have very good relations with lots of
people.Lots of people who are also 'entrepreneurial' and
are more than willing to collaborate in some way in a
good venture.
The considered 'most i mpor tant' element here is the
thinking found within 'Dynamic Environments'
These environments are very unusual – “Whilst they are
supportive, they are often loosely bounded and consist of changing
surroundings within which you must adapt to new situations and
overcome unpredictable problems.”

Dynamic environments – are not
new – but you have to find them
“Future gods and services are discovered,evaluated and exploited
when entrepreneurial individuals interact with their
environment” Venkatraman (2000)
“Enterprise creation is perhaps the key issue in entrepreneurship
The enterprise phenomenon involves interaction between the
environment and individuals.Entrepreneurship, and
thus,enterprise creation stands at the nexus of lucrative
opportunity and enterprising individuals.” Katz&Brockhaus
(1997)
“It is har dly possible to over rate the value of
placing humans in contact with per sons
dissimilar to themselves and with modes of
thought and action unlike those with which they
are familiar..such communication has always
been and is peculiar in the present age, one of

Entrepreneurial Environments
Where are they – right here, right now –
you're in one
________________________________
DoeS Liverpool....Jelly!...Open Labs...and
more
Check them against each other are they fulfilling
the expectations we've talked thro today?
Start your own – but don't keep it – share it –
that's the key.
What do you want out of them – follow the needs

Environmental Gains
STRATEGIC POSITIONING
Gain co-operation and collaboration as needed for any
given opportunity that arises – get help – learn – find
partners – find more assets – gain emotional support –
get favours – exchange products (assets)
RECIPROCAL ALTRUISM
Be a giver, not just a taker. If you get free unconditional
help from the environment, give more back – this
increases the stickiness of your strategic position –
which is a good thing!

Our AdaptiveToolbox

We know we must deliver to ourselves an audit of the assets we
have and view them in multiple ways...could I use my cooking
skills to start a café? To open a cookery school? To?? etc
etc..we are beginning to build our unique evolved capacities
We know we need to engage with others to look for collaboration
– to help us enhance our offer to the world at large – we can
build our evolving strategic positioning
Communities cannot survive and we cannot survive within them if
we don't practise and continue to practise reciprocal altruism
THESE ARE THE BEGINNINGS OF ENTREPRENEURIAL LIFE

Are there any proofs of an Adaptive
Toolbox actually working?
I can't think of many, or any?, top draw
entrepreneurs who don't have a keen eye on
how to best use their assets! capacities
Nor can I think of any who aren't partnering in
some way or another with another
entrepreneur! positioning
Nor can I think of many who don't have a real
focus on giving back their help to society and
community! altruism
Seems like a three nil win?

MONEYGAME
Kauffman Sketchbook - "Money Game" You Tube
http://www.kauffman.org/KauffmanMultimedia.aspx?VideoId=1304559795001&type=M
_____________________________________________

Most entrepreneurs startup capital is from personal savings # 1 source
Credit Cards are the second source of capital #2
Borrowings,gifts or loans from family & friends are next #3
Bank loans – if you have assets / good plan maybe
Venture Capital – less than 20% of fastest growth cos use it
Substantive grant funding – not even on scale

MONEY GAME
Most 'new starts' grow organically ( growth fuels
more growth) – most find it hard.
More than 80% of entrepreneurs do not have
venture funds
_____________________________
Entrepreneurs start lean and stay lean using
forms of bricolage to grow – including capital
supplies – the art of making something out of
nothing

MONEY GAME
Most 'founders' ( entrepreneurs) capitalise their
business from their savings
They also use credit cards
Sometimes their family chip in ( or friends)
Then cashflow from their business sustains them and
enables sufficient growth
_______________________________
These FOUR sources are the principal
source of capital for most new start
enterprises

TAKEAWAYS ? #1
Think Seek out ADAPTIVE
TOOLBOX
differently PROBLEMS
about your and Find Capacities

ASSETS Opportunities Strategies
Altruism

OODA Looping Test minimum viable Money is never
models
Observe the problem
Orient
ITERATE its ALWAYS
Fail Forward Fast the DEAL !
Decide/Act
Think LEAN

Ian Scott
ENTREPRISE
Working with entrepreneurs across The Entrepreneurs Co-op
Liverpool City Region in the
delivery of collaborative cartulary@gmx.com
enterprise and supporting the
call for a collective voice for
entrepreneurs and micro
enterprise within the region
Ian Scott LLB(Hons) LLM
scott@rapid.co.uk
07528 935091 mobile
07077 076830 switchboard
F a x : 08715 227901

Adaptive toolbox v3.1

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