Self-Understanding for Opportunity Creation
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Neck1ePPT03.pptxChapter 3: Developing an Entrepreneurial Mindset
Notable Quote
“I stand upon my desk to remind myself that we must constantly look at things in a different way.”
John Keating, lead character in the 1989 film Dead Poets Society (played by actor Robin Williams).
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3.1 Appraise the effectiveness of mindset in entrepreneurship.
3.2 Define “mindset” and explain its importance to entrepreneurs.
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Learning Objectives
3.3 Explain how to develop the habit of self-leadership.
3.4 Explain how to develop the habit of creativity.
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Learning Objectives
3.5 Explain how to develop the habit of improvisation.
3.6 Relate the mindset for entrepreneurship to entrepreneurial action.
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Learning Objectives
3.1 The Power of Mindset
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Why Mindset Matters
Experience and knowledge only go so far without confidence
Example: Robert Donat, founder and owner of GPS Insight
The Power of Mindset
Figure 3.1: Rise and Shine
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Credit: “TCU Baseball 2012 - The Grind.” Transcript and screenshot from a YouTube video. Red Productions, 2012. https://www.youtube.com/watch?v=MNL_DAI19_I
Athletes use a motivational mindset to achieve goals on the field.
THE POWER OF MINDSET
Should a budding entrepreneur accumulate experience working for others before starting an entrepreneurial venture? Why or why not?
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3.2 What Is Mindset?
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Mindset
“The established attitudes held by someone”
(McKean, 2005).
What is Mindset?
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Fixed Mindset Views
Talents are traits.
Brains plus talent equals success.
Constructive criticism is a personal attack.
Others’ success is due to luck.
Avoid challenges
What is Mindset?
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Growth Mindset
Believe abilities can be developed through hard work
Brains and talent are only the beginning of success
Lifelong learners
View failure as an opportunity to improve
What is Mindset?
Figure 3.2: What Kind of Mindset Do You Have?
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Consider a highly successful person. Which aspects of his or her success are due to luck and which come from dedication?
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Entrepreneurial Mindset
The ability to quickly sense, take action, and get organized under uncertain conditions. Includes the ability to persevere, accept and learn from failure, and get comfortable with a certain level of discomfort.
What is Mindset?
R. D. Ireland, M. A. Hitt, and D. G. Sirmon, “A model of strategic entrepreneurship: The construct and its dimensions,” Journal of Management 29 (2003): 963-990.
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Figure 3.3: Metacognition
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Passion
Intense positive emotion
Motivates to overcome obstacles
Stimulates focus on goals
Enhances creativity
What is Mindset?
How does your passion relate to your desired impact?
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Entrepreneurship as a Habit
Develop a mindset through creating a habit
Practice until it is carried out unconsciously and continually
Entrepreneurs are more likely to continue when rewarded
What is Mindset?
The rewards cab be intrinsic or extrinsic
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What challenges do you foresee in developing the habit of entrepreneurship? How can you overcome these challenges?
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3.3 The Self-Leadership Habit
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Self-Leadership
Individuals must influence and control their own behavior, actions, and thinking to achieve the self-direction and self-motivation necessary to build their entrepreneurial business ventures.
The Self-Leadership Habit
Entrepreneurship requires a deep understanding of self and an ability to motivate oneself to act. You cannot rely on someone else to manage you, get you up in the morning, or force you to get the work done. It can be lonely and oftentimes no one is around to give you feedback, reprimand you, or reward you! As a result, self-leadership is required and consists of three main strategies: behavior-focused strategies; natural reward strategies; and constructive thought pattern strategies.
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Figure 3.4: Elements of Self-Leadership
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Three Strategies for Self-Leadership
1. Behavior-focused strategies
Natural reward strategies
Constructive thought pattern strategies
The Self-Leadership Habit
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Behavior-Focused Strategies
Self-awareness
Self-observation
Self-goal setting
Self-reward
Self-punishment
Self-cueing
The Self-Leadership Habit
Behavior-focused strategies help to increase self-awareness to manage behaviors particularly when dealing with necessary but unpleasant tasks. These strategies include self-observation, self-goal setting, self-reward, self-punishment, and self-cueing (see Figure 3.4).
Self-observation raises our awareness of how, when, and why we behave the way we do in certain circumstances. For example, twice a day, you could stop and deliberately ask yourself questions about what you are accomplishing; what you are not accomplishing; what is standing in your way; and how you feel about what is happening. This is the first step towards addressing unhelpful or unproductive behaviors in order to devise ways of altering them to enhance performance.
Ideally, self-punishment or self-correcting feedback is a process that allows us to examine our own behaviors in a constructive way in order to reshape these behaviors. For example, if we make a mistake, we can assess why it happened and make a conscious effort not to repeat it. However, many of us have the tendency to beat ourselves up over perceived mistakes or failures; indeed, excessive self-punishment involving guilt and self-criticism can be very harmful to our performance.
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Natural Reward Strategies
Making aspects of a task more enjoyable by building in features to focus on the most positive aspects of the tasks.
Examples: Walking, music, coffee, or stretching breaks
The Self-Leadership Habit
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Constructive Thought Pattern Strategies
Forming productive ways of thinking that can benefit our performance.
How to practice: Identify and reframe destructive beliefs by practicing positive self-talk and mental imagery.
The Self-Leadership Habit
Much of our behavior is influenced by the way we think, and the habit of thinking in a certain way is derived from our assumptions and beliefs. Constructive thought patterns help us to form positive and productive ways of thinking that can benefit our performance. Constructive thought patterns strategies include identifying destructive beliefs and assumptions and reframing those thoughts through practicing self-talk and mental imagery.
As we observed earlier in this chapter, we can use positive self-talk to change our mindset and thought patterns by engaging in dialogue with that irrational voice on our heads that tells us when we can’t do something. Similarly, we can engage in mental imagery to imagine ourselves performing a certain task or activity. In fact, studies show that people who visualize themselves successfully performing an activity before it actually takes place are more likely to be successful at performing the task in reality.
These behavioral self-leadership strategies are designed to bring about successful outcomes though positive behaviors, and suppress or eliminate those negative behaviors that lead to bad consequences. The concept of self-leadership has been related to many other areas such as optimism, happiness, consciousness, emotional intelligence, among others. We believe self-leadership to be an essential process for helping entrepreneurs build and grow their business ventures.
C. Manz and C. Neck Mastering Self-Leadership: Empowering Yourself for Personal Excellence (3rd ed) (Saddle River, NJ: Pearson Prentice Hall, 2004).
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3.4 The Creativity Habit
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Developing Creativity
Creativity: The capacity to produce new ideas, insights, inventions, products or artistic objects, which are considered to be unique, useful, and of value to others.
The Creativity Habit
Creativity is a difficult concept to define mainly because it covers such a wide breadth of processes and people—from artists, to writers, to inventors, to entrepreneurs—all of whom could be described as creative. Yet creativity can be elusive, and sometimes we only spot it after it is presented to us. Take the classic inventions, for instance. Sometimes, we look at these inventions and wonder why on earth we hadn’t thought of them ourselves. Post-it brand notes, paper clips, zippers, and Velcro—they all seem so obvious after the fact. But of course it is the simplest ideas that can change the world.
M. Neck, “Idea generation,” In B. Bygrave & A. Zacharakis eds. Portable MBA in Entrepreneurship (Hoboken, NJ: John Wiley & Sons, 2010, pp. 27-52).
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Roadblocks to Creativity
Fear
No appetite for chaos
Preference for judging over generating ideas
Dislike for incubating ideas
Perceived lack of challenge
Inability to distinguish reality from fantasy
The Creativity Habit
James Adams, Conceptual Blockbusting, 4th ed. (Cambridge, MA: Perseus, 2001).
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A Creative Mind
Requires both “left-brain” and “right-brain” thinking.
Both sides of Csikszentmihalyi’s “Polarity of Creative Individuals” model
The Creativity Habit
Figure 3.5: Left Versus Right Brain Orientation
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Source: Neck, H. M. (2010). Idea generation. In B. Bygrave & A. Zacharakis (Eds.), Portable MBA in entrepreneurship (pp. 2752; Figure on p. 38). Hoboken, NJ: Wiley.
Table 3.1: Csikszentmihalyi’s Polarity of Creative Individuals
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Credit: Adapted from in H. M. Neck, “Idea generation,” In B. Bygrave & A. Zacharakis eds. Portable MBA in Entrepreneurship (Hoboken, NJ: John Wiley & Sons, 2010, pp. 27-52; figure on p. 40) and adapted from Mihaly Csikszentmihalyi, Creativity: Flow and the Psychology of Discovery and Invention (New York: Harper Collins, 1996).
3.5 The Improvisation Habit
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The Improvisation Habit
Improvisation: The art of spontaneously creating something without preparation.
The Improvisation Habit
The ability to function in an uncertain world requires a degree of improvisation. Entrepreneurs may begin with a certain idea or direction, but obstacles such as limited resources, environmental conditions, or a changing mindset can prevent them from executing their initial plans. This means they need to find a way to quickly adapt to their circumstances, think on their feet, and create new plans to realize their vision. A recent study showed that entrepreneurs starting new ventures who displayed more signs of improvisational behavior tended to outperform those who did not have the same tendencies.
K. Hmieleski and A. Corbett, “The contrasting interaction effects of improvisational behavior with entrepreneurial self-efficacy on new venture performance and entrepreneur work satisfaction,” Journal of Business Venturing 23, no. 4 (2008): 482-496.
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Table 3.2: Improvisation Guidelines
Not just for actors or musicians
No such thing as being wrong
No questioning or rejecting suggestions
Ideas are taken on board, expanded, and passed on for further input
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The Improvisation Habit
Source: Points taken from Gotts and J. Cremer, Using Improv in Business, retrieved October 31, 2014 http://iangotts.files.wordpress.com/2012/02/using-improv-in-business-e2-v1.pdf
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Table 3.2: Improvisation Guidelines
Everything is important
It is a group activity
Trust that the group will solve problem
Listen closely and accept what you are given
Be spontaneous and imaginative
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The Improvisation Habit
Source: Points taken from Gotts and J. Cremer, Using Improv in Business, retrieved October 31, 2014 http://iangotts.files.wordpress.com/2012/02/using-improv-in-business-e2-v1.pdf
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Improvisation
The “Yes, and” principle
Anyone can improvise
The Improvisation Habit
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Figure 3.6: MRI Scans From Jazz Improvisation
While pianists improvised, they tended to switch off the self-censoring part of the brain.
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The Improvisation Habit
Source: Limb, Charles J. “Neural Substrates of Spontaneous Musical Performance: An fMRI Study of Jazz Improvisation.” PLOS One. http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0001679
3.6 The Mindset as the Pathway to Action
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Self-Efficacy and Entrepreneurial Intentions
Entrepreneurial Self-Efficacy (ESE): belief in own ability to begin new ventures
ESE can be measured (see next slide).
Self-efficacy can change over time.
The Mindset as the Pathway to Action
Table 3.3: The General Self-Efficacy Scale (GSES)
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The Mindset as the Pathway to Action
Source: Schwarzer, R. & Jerusalem, M. (1995). Generalized Self-Efficacy Scale. In J. Weinman, S. Wright, & M. Johnston (Eds.), Measures in health psychology: A user’s portfolio. Causal and control beliefs (pp. 3537). Windsor, England: NFER-NELSON. Scale retrieved from http://userpage.fu-berlin.de/~health/engscal.htm
The higher the score, the stronger the belief in your ability to take action. Keep in mind that self-efficacy can change over time. The more you practice something, such as entrepreneurship, the greater the likelihood that your self-efficacy related to entrepreneurial action will increase.
Source: R. Schwarzer and M. Jerusalem M. (1995). Generalized Self-Efficacy scale. In J. Weinman, S.Wright, & M. Johnston, Measures in health psychology: A user’s portfolio. Causal and control beliefs (pp. 35-37). Windsor, UK: NFER-NELSON. Scale retrieved from http://userpage.fu-berlin.de/~health/engscal.htm on November 2, 2014.
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The Role of Mindset in Opportunity Recognition
As we adopt a more growth-oriented mindset, we are more inclined to recognize and create opportunities.
The Mindset as the Pathway to Action
What Does Your Mindset Say About You?
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MINDSHIFT: What Does Your Mindset Say About You?
Visit a place that you are unfamiliar with. It can be a park, somewhere on campus you haven’t explored, a neighborhood, a new restaurant—―really just about anywhere, provided you are not already familiar with the place. Bring with you a paper notepad and pen. Yes, real paper!
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MINDSHIFT: What Does Your Mindset Say About You?
For 10 minutes, just look around and write down a description of what you observe. Make sure that when you write your observations, you use adjectives to describe what you see. For example, you may see a swing set in a park, but you need to describe that swing set. The swing set may be rusty, shiny, empty, broken, vibrant, or dull. A dog you see in the park may be big, cute, dirty, ugly, friendly, or hostile.
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MINDSHIFT: What Does Your Mindset Say About You?
After you’ve finished, sit down and look at the list of words you’ve written. Circle all words that have a positive connotation. Using the park example above, you would circle shiny, vibrant, cute, and friendly. Now place a square around all words that have a negative connotation. In our park example, this could be rusty, broken, dull, dirty, ugly, and hostile.
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MINDSHIFT: What Does Your Mindset Say About You?
What’s the point of all of this? Oftentimes what you see on the outside is a reflection of your mindset on the inside. If what you see in the world is predominantly negative, then your mindset for entrepreneurship needs to be further developed. If what you see in the world is more positive, it will be much easier for you to identify opportunities and make a difference.
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1. In what ways did this 10-minute observation exercise confirm your existing assumptions and beliefs about your way of looking at the world? In what ways did it change them?
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MINDSHIFT: CRITICAL THINKING
2. Did you learn anything about yourself that was unexpected or surprising? 3. What do you think would happen if you repeated this exercise in a different location?
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MINDSHIFT: CRITICAL THINKING
