University of Virginia research indicates that Entrepreneurs fall into two categories - those that use effectual reasoning (developing business goals and adapting them as they go), or use causal reasoning (set goals at the outset and strive to achieve them in the most effective manner).
I would like to know what you think. Please share your thoughts as comments (see the link below).
For more info see the Inc. Magazine article "How Great Entrepreneurs Think" in the February 2011 edition.
While ‘causal’ is my natural mode, it seems to me for most of us it is not either/or. It is often a blend. I am a big fan of Napoleon Hill’s "Think and Grow Rich". I believe Napoleon Hill was the first person to write “Plan Your Work and Work Your Plan”. That’s "causal". My approach to business is wrapped in "causal".
On the other hand, it don’t think people’s styles can be quantified as simply as that.
To expand a bit, here are three pairs of factors to consider …
1. People & Process .... While process is a good fit with the "causal" approach, people are not nearly as good a fit. So, when it comes to people I adapt as I go [effectual].
2. Rudimentary tasks and Conceptual tasks .... Rudimentary tasks align with a "causal" approach. Conceptual tasks are not so good a fit.
3. Time Frame .... A "causal" approach works well with longer-term goals. This factor is the one that lets me know "causal" is my natural mode. Regardless, for shorter-term goals I adapt. I suppose it could be argued that still fits with the ‘causal’ definition.