In times of uncertainty, in unstable situations or phases of major change, one often knows only one thing with great certainty: that one does not know much about what the future might hold. Classical management with causal logic and fixed goal orientation offers little guidance to transform uncertainty constructively - the approach of "Effectuation," on the other hand, does.
Shaping the Future Entrepreneurially
Setting goals and measuring people or organizational units against them to see if they are achieved: that is the holy grail of classical management. It is not foreseen that the degree of VUCA (Volatile, Uncertain, Complex, Ambiguous) is so high that a clearly defined goal for the future may not be possible or meaningful at first. "Effectuation" - the term was coined by entrepreneurship researcher Saras Sarasvathy - addresses these uncertainties. Instead of precise goal orientation, this model focuses on flexible goals/plans and the present and currently available resources. Rather than speculating on a specific return in the future, one considers the targeted investments and decides: Can one potentially live with a (partial) loss? Because in "Effectuation," failure is an option that is considered from the beginning.
Always Keeping One's Own Strengths in Mind
Enduring uncertainties, embarking on a journey without a fixed goal, is not easy, for both leaders and employees. The doctor and pioneer of hypnotherapy, Gunther Schmid, is familiar with these dilemmas from years of consulting practice in companies as well as individual coaching. With his concept, he expands the cognitive toolbox of "Effectuation" and focuses on strengthening or activating unconscious resources and competencies. In "Polynesian Sailing," one acts AS IF one knew where the destination is and sets sail. In this movement, one constantly keeps an eye out for other interesting clues (including for a change in direction) and adjusts the "As if" goal accordingly if necessary. For Gunther Schmid, the function of a goal is NOT to achieve it, but to get into motion. Ultimately, where one anchors is the best goal one wanted to achieve. Along the way, much has been learned and responded to accordingly. When external circumstances offer little certainty, it is all the more important to constantly reassess one's own strengths, values, and motivation. The central pivot point for him is the question: What makes sense to me?
Defining Spaces + Resources - and Starting Quickly
What changes for leaders and employees when they apply "Effectuation" in a VUCA environment? Leaders are relieved, and employees are empowered in their self-efficacy. For employees, a clearly defined action space is set, within which they can act autonomously and swiftly. Through action, all parties quickly gain new insights, seize opportunities and chances immediately, and reorient themselves based on newly acquired knowledge: Do I now have more resources, more knowledge available than before? Who or what supports me in continuing in the direction I have taken, is a change of direction indicated, or is it advisable to immediately abandon the endeavor? Leaders and employees thus gain decision-making security step by step, through the easily learnable and applicable principles of "Effectuation."
Conclusion
The thinking and action patterns of "Effectuation" promote the entrepreneurial potential of employees in dealing with uncertainty. Instead of fearing uncertain outcomes, curiosity about the next step is aroused, and instead of paralyzing passivity, activities can be focused in a defined experimental space. The more knowledge is gathered and successful steps are taken, the initial uncertainty can decrease and goal clarity can increase. This allows organizations to once again benefit from the strengths of classical management: setting clear goals, making plans, and then implementing them.
