New Entrepreneurial Leaders

Shape Social and Economic OpportunitiesProf. Dr. Aung Tun Thet

New Entrepreneurial Leaders

Shape Social and Economic Opportunities

Prof. Dr. Aung Tun Thet

Entrepreneurs

• Think and act differently• Method • Mind-set

Today

• Increasingly crowded world • Divide between haves and have-nots growing• Job creation

Today

• High youth unemployment• Turn out employment creators • Not employment consumers• More entrepreneurial leaders

Future Leaders

• Cognitively ambidextrous• Entrepreneurial mindset and methodology • Experiment with new ideas • Act in new environments• Apply deep knowledge and detailed analysis to plan future

actions

Future Leaders• Act creatively within unknowns • Learning more traditional competencies where information

relevant and accessible• Discern knowable from unknowable• Understand approach that works• Adapt actions and analyses accordingly

Future Leaders• Think about social and environmental sustainability• Alongside analytics and profits• Multiple ways of making decisions and leading organizations• Self- and social awareness

Entrepreneurial Leaders

Entrepreneurial Leaders• Different logic of decision-making • Different rationale • Profit maximization and shareholder value creation no longer

sufficient• Maximizing common good and minimizing social injustice and

environmental impact

Entrepreneurial Leaders• Understanding themselves and contexts • Act on and shape opportunities that create value • Simultaneously create social, environmental, and economic

opportunities

Entrepreneurial Leaders• Taking action and experimenting with new solutions to old

problems• Refuse to resign themselves to problems

Entrepreneurial Leaders• Combination of self-reflection, analysis, resourcefulness, and

creative thinking and action• Inspire and lead others to tackle intractable problems

Entrepreneurial Leaders• Not synonymous with entrepreneurship• New model of leadership

Entrepreneurial leaders• Introduce new products and processes • Lead expansion opportunities• Work in social ventures tackling societal problems • Engagement in social and political movements

Entrepreneurial leaders• Challenge, change, and create new ways to address social,

environmental, and economic problems • Think and act differently to improve organizations and world

Principles of Entrepreneurial Leadership

Entrepreneurial Leadership• New model of thought and action• Fundamentally different worldview of business• Different decision-making logic

Entrepreneurial Leadership• Not innate personality characteristics• Developed unique mental models • Support power of human action to create and build better

world• Three principles

EntrepreneurialLeadership

CognitiveAmbidexterit

y

SSA

SEERS

Creation/Prediction Logics

Self&

Social awareness

Responsibility &

Sustainability

Cognitive Ambidexterity• Different way of thinking and taking action• Engaging both prediction logic and creation logic in

decision-making approach

Cognitive Ambidexterity• When future goals and environment reflect past• Traditional analytical models applied to predict and manage

situation• When future unknowable • Create future through action and experimentation• Balance and engage both decision-making approaches

Decision Making Approaches

Jigsaw Puzzle as Prediction Logic • Puzzle box offers number of known variables• Number of pieces inside and picture of solved puzzle• Reduce uncertainty around difficulty and time to completion

Jigsaw Puzzle as Prediction Logic • Establish goal: complete puzzle• Acquire resources: open box and get puzzle pieces• Analyze experience with puzzle building and design process for

completing puzzle

Jigsaw Puzzle as Prediction Logic • Measure progress and making adjustments by reviewing box

cover and revising plan• Project complete when all pieces connected to match picture

on box• Start with clear goal and follow linear process to

completion

Prediction Logic • Experience of assembling jigsaw puzzle• Established analytical approach • Tools, frameworks and processes for analyzing causes and

predicting effects of given event or action

Prediction Logic • Predict outcome of actions using observation, experience,

analysis and reasoning• Learn through rigorous analysis of causes and effects of situation• Decisions yield intended results

Prediction Logic • Like putting together jigsaw puzzle• Applicable in organizational situations in which goals

predetermined, issues clear, and data reliable and available• Six principles

Principles of Prediction Approach to Thought and Action1. Goals predetermined and achievable given known information2. Information known for rigorous analysis and testing3. Tools and frameworks guide decision-making

Principles of Prediction Approach to Thought and Action4. Optimal solutions identifiable within given set of constraints5. Risk minimized or mitigated6. Outside organizations seen as competitors and barriers to

future growth

Creation Logic • Crazy quilting • Combining irregular patches of fabric with little or no

regard to pattern or design• Design, shape, and colour of quilt depended not only on

knowledge and experience of quilters • Amount and type of fabric • Creativity

Creation Logic • Creation component of cognitive ambidexterity• Participants enter quilt-making room with little

information and few resources• Employ “means-focused” process - design quilt based on

available materials• Different from “prediction-oriented” process

Creation Logic • Self-select • Brings additional resources (fabric)• Quilt design emerge• New fabric force team to go in different direction• Creation approach – with each additional set of

resources pool of possibilities expands

Creation Logic• Action-oriented approach • New inputs (actions, information, and resources) expand

available opportunities• Teams co-create

Entrepreneurial Leaders• Use creation logic when future uncertain and unpredictable • Past information not predictive of future activity

Entrepreneurial Leaders• Bring to table different knowledge, resources, and networks• Take action and create opportunity by engaging these different

forms of capital• Six principles

Principles of Creation Approach to Thought and Action

1. If perceived resource needs beyond control, create something with what you have

2. When future unpredictable, create future by shaping opportunities

3. When operating with limited information, acquire information but expect and leverage surprises or failures

Principles of Creation Approach to Thought and Action

4. Optimal decision-making never possible in highly uncertain environments - “satisficing” to take swift action

5. Risk no longer inhibitor of entrepreneurial action6. Outside organizations, customers, and self-selected

stakeholders co-creators and not competitors

SEERS• Fundamentally different worldview of business and society• Understanding different value base for business• Social, environmental, and economic responsibility and

sustainability

SEERS• Navigate social, environmental, and economic value creation

and tensions and synergies • Engage social, environmental, and economic value creation

simultaneously not sequentially

SSA• Self and social awareness• Leverage understanding of themselves and social context to

guide effective action• Authentic and insightful understanding of own sense of purpose • Make effective decisions in uncertain and unknowable

circumstances

Management Education for Entrepreneurial Leadership

Current Management Education• Fall short in teaching entrepreneurial leadership• Too analytical • Focused on concepts and quantitative modelling• Not applicable to solving complexities of today’s unknowable

world

New Management Education• Use creativity, experimentation and action to harvest

opportunities• Emphasis on ethics and social responsibility • Develop entrepreneurial leaders with different worldview• Reflective of themselves and of world around them

New Management Education• Connect values and passions to inspire and create social and

economic opportunity • Increased emphasis on ethics, leadership, and corporate social

responsibility• Design thinking • Educating leaders who generate social and economic

opportunity in today’s unknowable environment• New paradigms

New Paradigm• Revise and reinvent management education and development • Mold entrepreneurial leaders who shape social and economic

opportunity

New Way of Thinking and Acting• Developing Cognitive Ambidexterity in Entrepreneurial

Leaders• Rely on varied complementary analytical approaches to

thought and action • Create and implement solutions socially, environmentally, and

economically sustainable

New Way of Thinking and Acting• Entrepreneurial leaders understand how and when to use

traditional analytical approaches - Prediction logic• Extension of scientific method • Protect against or control future through detailed analysis• Data mining, market research and traditional statistical

tools identify and develop opportunities

New Way of Thinking and Acting• Prediction approach applicable when goals predetermined,

issues clear, causes and effects understood, and data reliable and available• Uncertain future predicted and decisions made based on

predictions

New Way of Thinking and Acting• Entrepreneurial leaders find situations where novelty or

complexity limits predictive capabilities• Traditional cause-and-effect relationships unknown,• Not possible to gather appropriate data or use historical

trends• Apply different logic based in action, discovery, and creation -

creation logic

New Way of Thinking and Acting• Creation logic - future created, not predicted• Action generate data and insight• Examine who they are, what resources they have access to, and

New Way of Thinking and Acting

• Entrepreneurial leaders employ both creation and prediction logics • Cycling between two• Effectively innovate • Manage change

Thank You!

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