What Should We Really Be Teaching : Competencies as a Focal Point for Entrepreneurship Education Michael H. Morris, Ph.D. George & Lisa Etheridge Professor of Entrepreneurship University of Florida California Entrepreneurship Educators Conference San Diego, California March 6, 2014 Competency : background Competence is a fuzzy concept useful in bridging the gap between education and job requirements (Boon and van der Klink (2002) To have competencies is to possess the necessary attributes to perform competently (Burgoyne, 1988) A characteristic of an individual that has been shown to drive superior job performance (Hartle, 1995) Observable behaviors that superior performers exhibit more consistently than average performers (Klein, 1996) IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Competency : background Competencies include knowledge, skills, attitudes, values, behaviors and characteristics that people need to do a job successfully (Bryant & Poustie, 2001) They correlate with job performance and can be measured against standards (Bryant & Poustie, 2001) One can contrast areas of competence (aspects of the job which an individual can perform) with competency (a person’s behavior underpinning competent performance) Competencies are connected to activities & tasks, and tend to be interrelated (Bergevoet, Mulder & Van Woerkum, 2005) IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Why competencies matter… ‘competency’ is a term that allows for flexibility in adapting to diverse and changing organizational demands (Garman and Johnson, 2006) a competency is something that can be learned and developed (Klarus, et al., 1999) IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Competency to ultimately do what? Entrepreneurship is… The capacity to perceive and act upon opportunities in the environment The pursuit of opportunity regardless of resources controlled The creation of something from nothing IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Under what conditions…the experience Limited Sense of Control Ambiguity Dejection Stress Loneliness Freedom Exhilaration Uncertainty Responsibility Adaptation Self-reliance Discipline Learning Change IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Delineating competencies Two expert panels Three waves (first listed competencies, then rated them, then indicated whether they were entrepreneurial or managerial) Survey Monkey Produced total of 167 competencies Split into two major groups: managerial and entrepreneurial Eventually arrived at 13 core entrepreneurial competencies IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA The key competencies Recognizing Opportunity Assessing Opportunity Vision/Seeing the Future Creative Problem-solving Resource Leveraging/Bootstrapping Mitigating and Managing Risk Planning/Modeling When Nothing Exists Innovation---Value-driven New Product and Concept Development Building and Managing Networks The Ability to Maintain Focus Yet Adapt Action Orientation/Implementation Tenacity/Perseverance Ability to Learn from Experiences IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Distinguishing types of competencies managerial Organizing Team building & Staffing Communicating Budgeting Controlling Motivating Planning Directing Operating Assessing entrepreneurial IMAGINE > BELIEVE > CREATE Recognizing Opportunity Assessing Opportunity Creative Problem-solving Resource Leveraging Guerrilla Skills Mitigating and Managing Risk Planning When Nothing Exists Innovation---Products, Services, Processes Building & Managing Social Networks Adaptation while Focusing Implementation of Something Novel or New UNIVERSITY OF FLORIDA So we are doing both Developing managerial competencies in the business school Developing entrepreneurial competencies in the entrepreneurship program Both are needed for success in an entrepreneurial context, although the relative importance of a given competency will vary IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Measurement approaches Pre- and post- measures using rating scales Judging experiential project portfolio Behavioral event interviews In class assessments tied to exercises Student diaries or registers Peer assessments Self-assessments at end of program Behavioral assessments after graduation (see also Bird, 1995) IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Sample measurement approach using scales 148 items in self-report, scaled format; mostly 5-point, Likert-type scales (stronly agree-strongly disagree) Opportunity recognition: 10 items from Tang, Kacmar and Busenitz (2010) Opportunity assessment: 5 items from Tang, Kacmar and Busenitz (2010) Risk management/mitigation: 9 items, self-developed based on Cramera,et al. (2002 and McMullen and Shepherd, 2006) Conveying a compelling vision: 8 items based on Chen, Yao and Kotha (2009) Tenacity/perseverance: 21 items from Duckworth and Quinn (2009) Creative problem-solving: 12 items from Hmieleski and Corbett (2006) Resource leveraging/bootstrapping: 15 items Politis Winborg and Dahlstrom (2011 and Brush et al., 2001) Guerrilla skills: 2 items, self-developed Maintain focus, yet adapt: 6 items from Haynie and Shepherd (2009) Resilience: 9 items from Sinclair and Wallson (2004) Self-efficacy: 11 items from Hodgkinson (1992) Build and exploit networks: 18 items from Forret and Dougherty (2001) Scale Refinement Opportunity Recognition, 6 items, alpha= 0.809 Opportunity Assessment, 5 items, alpha: 0.875 Risk Management/Mitigation, 5 items, alpha: 0.745 Conveying a compelling vision/seeing the future: 6 items, alpha: 0.827 Tenacity/perseverance: 14 items, alpha: 0.861 Creative Problem Solving/Imaginativeness, 7 items, alpha: 0.968 Resource Leveraging/Bootstrapping, 8 items, alpha: 0.931 Guerrilla skills, 2 items, alpha: 0.752 Value Creation w/ New Products, Services, Business Models: 15 items, alpha: 0.949 Ability to Maintain Focus yet Adapt , 6 items, Alpha: 0.878 Resilience: 9 items, alpha: 0.887 Self-Efficacy : 4 items, alpha: 0.895 Networking/Social Skills: 17 items, alpha: 0.87 Pilot: the EESA Program • • • • • • • • 23 American students and 15 South African students Rigorous 6 – week intervention Consulting to historically disadvantaged entrepreneurs Pre- and post measures Improvement on all 13 competencies Significant differences on: Opportunity Recognition Risk Management/Mitigation Creative Problem Solving/Imaginativeness Resource Leveraging/Bootstrapping Guerrilla Value Creation with New Products, Services, Business Models Resilience Networking/Social Skills Setting the standard for a rubric Criterion-referenced evaluation: student performance is assessed relative to standards set by the discipline or entrepreneurship faculty Norm-referenced evaluation: students are evaluated on the basis of comparisons to other students IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Establishing norms We have no norms Benchmarks must be established Suggest we initially evaluate students relative to one another Over time we might create benchmarks using successful entrepreneurs But----are certain competencies more critical for success in certain types of contexts? Is our focus less on achieving some absolute level on a competency ---- or more on showing improvement relative to where a student started? Competency is a process of continual development through one’s life---not riding a bike---fades without practice IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Sample template for scales (Mertler 2001) Beginning 1 Developing 2 Accomplished 3 Exemplary 4 Score Comp #1 description description description description Comp #2 description description description description Comp #3 description description description description Comp #4 description description description description Total Score = _______ Score at Program Outset _______ Average Student Score ________ Mastering a competency: how do we teach it??? Knowledge and Understanding: what do you need to know about resource leveraging Attitude/Affect and Self-Awareness: what do you need to think, believe and feel about resource leveraging? Skills and Behaviors: what do you need to be able to do in terms of resource leveraging? These are all learning outcomes We can do more not just in terms of conveying knowledge, but in all three areas, especially to the extent that we stress experiential learning IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Each competency requires a definition and level of proficiency Definition: What do we mean by the competency? Level of Proficiency: What must the student be able to demonstrate in terms of knowledge, skills, capabilities and attitudes he competency to indicate mastery of the competency? IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA An illustration Example: Risk management Definition: The ability to identify relevant risks surrounding an entrepreneurial action and systematically mitigate those risks. Level of Proficiency: 1. Understands key types of risks 2. Can identify principle risks surrounding a given entrepreneurial action 3. Can prioritize risks based on magnitude and probability of loss 4. Is able to develop specific actions to -stage the risk -share the risk -reduce the risk IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Breaking it down for teaching purposes Knowledge Attitudes/values Nature of risk versus uncertainty Dimensions of risk Categories of risk General techniques for mitigating risk Willingness to assume moderate levels of risk Belief that risk is manageable Sense of association between risk level and potential return Behaviors/Skills Ability to estimate risk Ability to isolate risk Ability to moderate level of risk IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA A second illustration Example: Opportunity identification Definition: The ability to specify unrecognized or unfilled gaps in the external environment creating an opening for a new product, service or process. Level of Proficiency: 1. Understands general sources of opportunity 2. Is capable of scanning the environment to identify emerging patterns & trends, competitor shortcomings, unutilized resources & unmet needs 3. Can connect an opening in the environment to a specific target audience with a need IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Breaking it down for teaching purposes Knowledge Attitudes/values Key sources of opportunity Major types of opportunity The nature of opportunities Four ways in which opportunities are identified Understanding of specific opportunity generation techniques Curiosity about why things work a certain way Value one places on being alert to opportunity Openness to being exposed to diverse and changing situations Behaviors/Skills Ability to draw associations Ability to grasp and hold onto ideas as they occur to us Ability to assess customer needs Response to a failure (e.g., elevator pitch loss) # of opportunities generated Novelty of ideas generated IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Teaching the competencies… Lectures define each competency illustrate each strategies for managing each examples relate to other competencies and learning points repetition Experiential learning in the classroom Experiential learning outside the classroom IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Experiencing…and experiencing again (practice) Cases Student incubators Tech commercialization teams Small business consulting projects Entrepreneurial audits Marketing inventions Creativity field experiences (e.g., the Lowe’s experience) Simulations Entrepreneurs in the classroom Interviews of E’s Unique internships Mentorships and job shadowing Role plays (VC’s, family firms, etc.) Business models Business plans and competitions Social entrepreneurship projects in the community IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Comprehensive Exam: D. Duck An Overview of My Experience Portfolio and Mastery of Competencies, MSE Program, 2013-14 My experience portfolio • Business Plan for MyPlanet.com • Business Model for Genius, LLC • Two consulting projects in Entrepreneurship Empowerment in South Africa: Kaltshaglass and Silulo Technology Four Marketing Inventions for Best Buy, Domino’s, the Hair Place, and • Internship at Starter Space Bob’s Quicklube • Competed in Big Idea • Entrepreneurial Audit for Infinite Competition, made Sweet Sixteen Energy (Duckfeet, LLC) • • Attended twelve entrepreneurial • Conducted formal interview of speaker presentations and hosted William (Billy) Bad, Founder of You one entrepreneur Ain’t Seen Nothing, Inc. • Consulting project for GoPlaces, LLC (Gatornest) • Started Duckfeet, LLC in Incubator IMAGINE > BELIEVE > CREATE • Completed feasibility study for franchise model for Club Risque UNIVERSITY OF FLORIDA Competency mastery: Opportunity Recognition a) Define opportunity recognition b) Provide examples of opportunities recognized during the program: Opportunity 1: explain and how I discovered it Opportunity 2: explain and how I discovered it Opportunity 3: explain and how I discovered it c) Provide summary of approaches you employ on ongoing basis in looking for new opportunities (e.g., pattern recognition, challenging assumptions, looking for underserved markets, etc.) IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Competency mastery: Guerrilla Skills a) Define the guerrilla concept b) Examples of guerilla techniques developed during the program: Guerrilla action 1: explain and how I came up with it Guerrilla action 2: explain and how I came up with it Guerrilla action 3: explain and how I came up with it c) Provide summary of approaches you employ on ongoing basis in attempting to come up with new guerrilla approaches---use a scenario (e.g., reciprocity, tapping underutilized resources in my environment, using an existing resource in new and novel ways, taking advantage of my surroundings, exploiting my extended network) IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA Competency mastery: Risk Management a) Define what is meant by calculated risk taking b) Examples of risk management techniques developed during the program: Risk mitigation action 1: explain and how I came up with it Risk mitigation action : explain and how I came up with it Risk mitigation action : explain and how I came up with it c) Provide summary of approaches you employ on ongoing basis in attempting to come up with new ways to manage and mitigate risks (e.g., staging market entry, outsourcing, partnerships, leasing instead of buying, contracting for labor, etc.) IMAGINE > BELIEVE > CREATE UNIVERSITY OF FLORIDA