Advancing Competency-based Assessment in Entrepreneurship Michael H. Morris, Ph.D. Professor and N. Malone Mitchell Chair Head, School of Entrepreneurship

Assessment of What? Assessment of What? (for us---(for us---student level, course level and program level)student level, course level and program level)

CompetencyCompetency : : defineddefined

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 OKLAHOMA STATE UNIVERSITY

CompetencyCompetency : : defineddefined

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, can be measured against standards, and can be improved with training (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, subject to learning and developmental processes, and tend to be interrelated (Bergevoet, Mulder and Van Woerkum, 2005)


Why teaching competencies Why teaching competencies matters…matters…

‘competency’ is a term that allows for flexibility in adapting to diverse and changing organizational demands (Garman and Johnson, 2006)

From an hrm perspective, a competency is something that can be developed (Klarus, et al., 1999)

Management Management vs.vs. Entrepreneurship Entrepreneurship

Management: Getting people together to accomplish desired goals and objectives. It comprises PODSCORB

Entrepreneurship: Recognizing and exploiting opportunity through new combinations. But what does it comprise?


The entrepreneurial The entrepreneurial experience…experience…

Limited Sense of Control

Loneliness Ambiguity Dejection

Stress Freedom Exhilaration

Uncertainty

Responsibility Self-reliance

Learning Adaptation Discipline

Change

IMAGINE> BELIEVE > CREATE OKLAHOMA STATE UNIVERSITY

Does the context matter?Does the context matter?

Start-up

Small or family business

Buying a business

Franchising

Corporate entrepreneurship

Social entrepreneurship

Public sector entrepreneurship

Entrepreneurship in a discipline (art, engineering)


Or is the behavior Or is the behavior universal?universal?

Innovative, risk-taking, proactive behaviors

Acting upon opportunity

Unique combinations

Creating something from nothing (or from something very different)

A mindset that is both attitudinal and behavioral

…regardless of the context


And so…And so…

Perhaps the managerial requirements or competencies needed to succeed in social entrepreneurship or corporate entrepreneurship or new venture creation differ

But do the entrepreneurial competencies differ? Perhaps not!


Stage 1 Methodology: Stage 1 Methodology: Delineating CompetenciesDelineating Competencies

Two expert panels

Three waves

Survey Monkey

Produced total of 167 competencies

Split into two major groups: managerial and entrepreneurial

Eventually arrived at 13 core entrepreneurial competencies

The key competenciesThe key competencies (note their (note their inter-dependencies)inter-dependencies)

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


Distinguishing Sample Distinguishing Sample CompetenciesCompetencies

managerial

Organizing Team building &

Staffing Communicating Budgeting Controlling Motivating Planning Directing Operating Assessing

entrepreneurial

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

So we are doing bothSo 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


How do we teach these How do we teach these competencies?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

Teaching: experiential Teaching: experiential learninglearning

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

Linking experiential learning to Linking experiential learning to outreachoutreach

Native American Entrepreneurship Academy

Community Microcredit Fund Entrepreneurship Empowerment in South

Africa Inner City Engagement Disabled Veterans Bootcamp OSU Entrepreneur’s Bootcamp Riata Business Plan Competition Entrepreneurial Mentors Program OSU Technology Commercialization

Initiative Dilemmas and Debates Enterprise Creation Competition, a

national business plan competition Women Igniting the Spirit of

Entrepreneurship The Experiential Classroom Riata Entrepreneurial Internships Distinguished Lectures & Workshops Commercial Test Kitchen

Connectivity is keyConnectivity is key

Integrate across the E curriculum

Contexts Competencies

Start-up Ventures

Early growth firms

Family Businesses

Rapid Growth Ventures

Corporate Entrepreneurship

Entrepreneurship within Professions & Disciplines

Non-Profit & Social Entrepreneurship

Public Sector

Cultural Entrepreneurship

Academic Entrepreneurship

Opportunity Identification

Opportunity Assessment

Resource Leveraging

Guerrilla Techniques

New Product- Service-Process Development

Risk Management

Creativity

Adaptation

Social Networking

Implementation Skills

Novel planning

Measuring competencies—Measuring competencies—some caveats some caveats Luken 2004; Le Diest Luken 2004; Le Diest and Winterton, 2005and Winterton, 2005

the definition of a given competence is not a homogeneous definition

competencies are not stable

competence assessments are always subjective

competence assessments are based on individuals, whereas the definition of the competence concept tries to include the context as well

Competence or skill is tied to an individual, but the individual’s competence may vary depending on context

the competence concept includes capacity, whereas it is also important to look at actual performance

Sub-dimensions in Sub-dimensions in mastering a competencymastering a competency

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


Each competency requires a Each competency requires a definition and level of definition and level of

proficiencyproficiency

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?

An illustrationAn illustration

Example:Risk management

Definition: The ability to identify relevant risks surrounding an entrepreneurial

action and systematically mitigate those risks.


1. Understands key types of risks2. Can identify principle risks surrounding

a given entrepreneurial action3. Can prioritize risks based on magnitude

and probability of loss4. Is able to develop specific actions to

-stage the risk-share the risk-reduce the risk


Sample ways to break it downSample ways to break it down Knowledge

Nature of risk versus uncertainty Dimensions of risk Categories of risk General techniques for mitigating risk

Attitudes/values 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

A second illustrationA 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.


1. Understands general sources of opportunity2. Is capable of scanning the environment to

identify emerging patterns & trends, competitor shortcomings,

unutilized resources & unmet needs3. Can connect an opening in the environment

to a specific target audience with a need


Sample ways to it down… Sample ways to it down… Knowledge

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

Attitudes/values 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

Measurement approachesMeasurement 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)


Examples of existing scales Examples of existing scales that tie inthat tie in

Innovativeness: Kirton Adaption Innovation Inventory

Networking: Hatala Network Accessibility Scale

Ambiguity Tolerance: Budner’s Tolerance for Ambiguity Scale

Adaptability: Haynie and Shepherd’s Cognitive Adaptability Scale

Setting the standard for a Setting the standard for a rubricrubric

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

Establishing normsEstablishing 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

Sample template for scalesSample template for scales(Mertler 2001)(Mertler 2001)

Beginning1

Developing2

Accomplished

3

Exemplary4

Score

Criteria #1

description

description

description description

Criteria #1

description

description


Criteria #1

description

description


Criteria #1

description

description


Total Score = _______ Score at Program Outset _______ Average Student Score ________

Some other tipsSome other tips Match measurement devices to instructional

goals

Do not rely on a single measure of a competency

Teacher judgment is the primary means for assessing competency

Certify competency in progressive stages

Get the students on your side

Allow for easy adjustment of competency measures as content changes

Allow a feedback loop where measurement of competencies is used to modify course content and curriculum design

-SeeTyo (1980)

“Be the change you wish to see in the world.”

-M. Gandhi

Documents

Advancing Competency-based Assessment in Entrepreneurship Michael H. Morris, Ph.D. Professor and N. Malone Mitchell Chair Head, School of Entrepreneurship