How Entrepreneurs Find Opportunity

by H. James Wilson, Danna Greenberg, and Kate McKone-Sweet

September 16, 2011https://hbr.org/2011/09/entrepreneurs-find-opportunity

In 2003, Jim Poss was walking down a Boston street when he noticed a trash vehicle in
action. The truck was idling at a pickup point, blocking traffic, with smoke pouring out of its exhaust.
Litter was still all over the street.
There has to be a better way, he thought to himself.
Looking into the problem, Poss learned that garbage trucks consume more than 1 billion
gallons of fuel in the U.S. alone. They average only 2.8 miles per gallon and are among the most
expensive vehicles to operate. In the early 2000s, municipalities and waste collection services were
considering more fuel-efficient vehicles and better collection routes to reduce their overall costs and
environmental footprint. Poss was not convinced that this was the right approach.
Through discussions with diverse stakeholders, he turned the problem upside down: the
answer might not be about developing a more efficient collection process, but about reducing the need
for frequent trash collection. As he considered this solution, he discovered multiple benefits: if trash
receptacles held more trash, they would not need to be emptied so often; if trash did not need to be
collected so often, collection costs and associated pollution would be reduced; and if receptacles did
not overflow, there would be less litter on the streets. There were many advantages to this approach.
By applying the solar technology he used at work, Poss envisioned how a new machine might
better manage trash. His initial concept of a solar-powered trash compactor was dismissed in favor of
other ideas for environmentally friendly inventions, including a machine that would generate
electricity from the movement of the ocean. Nonetheless the problem and the potential solutions
continued to occupy his mind. “I took pictures of trashcans on my honeymoon,” Poss confessed.
He began to involve others, choosing a team based on who he knew might be interested
within his social network. “We are motivated in part because we care about the environment and in
part because we know this can be financially successful.” Poss and his assembled team experimented
with a variety of options and finally returned to — the Big Belly — an innovation that provides clear
solutions to the problems he noted on the city street that day. The current version can hold up to five
times more trash than traditional receptacles. As a result, it dramatically decreases the frequency of
trash pickup and cuts fuel use and trash-truck emissions by up to 80 percent.
Entrepreneurial leaders like Jim Poss create opportunities using three practices that we have
observed again and again in our research of over 1,500 organizations in the past two years. While
each practice is separately rooted in existing theory, entrepreneurial leaders distinguish themselves by
adroitly circulating between all three, as Poss’s story illustrates:
Relying on self and social awareness. Entrepreneurial leaders shape opportunities within the
context of who they are, what they know, and who they know. Notice how Poss began with a problem
he experienced directly in his life, linked that concern to his expertise in solar technology, and then
connected his ideas with others in his community and his broader networks.
 Employing cognitive ambidexterity. This practice is characterized by switching flexibly back
and forth between “prediction” and “creation” approaches to thought and action. The prediction
approach, which is based on analysis using existing information, works best under conditions of
certainty and low levels of perceived uncertainty. The creation approach, on the other hand, involves
taking action to generate data that did not exist previously or that are inaccessible. Note how Poss
used the prediction approach as he analyzed available operational and financial data on trash truck
fuel consumption. In situations where data wasn’t available, Poss generated data himself by creating
conversations and prototypes to guide his next steps.
In some instances prediction and creation logics are portrayed as incompatible methods of
thought and action. However, in our research into entrepreneurial leadership we found this distinction
to be artificial. Through conscious effort, one way of thinking can be used to inform and progress the
other way of thinking, making the approaches complementary. Moreover, by engaging prediction and
creation approaches, entrepreneurial leaders are able to create greater value than if they had tried only
one of these approaches.
Considering social, environmental, and economic value simultaneously. We use the acronym
SEERS — which refers to social, environmental and economic responsibility, and sustainability — to
capture the full scope of impacts that entrepreneurial leaders consider at once. Consider how Poss was
able to simultaneously consider customer benefits (reduced costs for municipalities) and
environmental impact (lower fuels emissions) without instinctively privileging one dimension over
another.
Using these three practices, he turned garbage into an opportunity.
Assignment # 2

Read the article and answer the following question.

20 pts each

Question:

1. What was the observation of Poss about the garbage problem? What was his solution to this
problem?

Poss noticed that garbage is still all over the street even though there is a trash vehicle in
action, trashes are still a problem and the large amount of gallon of fuels is still a problem
that needed to take an action with. So he came up with the solution by developing more
efficient collection process and reducing the need of trash collection at the same time.

2. What particular habit in the entrepreneurial was used by Poss in the situation? Discuss
briefly.

Some entrepreneurial habits Poss used in the situation is being flexible and ready to set up
and adjust in the situation for their goals. Another habit is following his vision, Poss is
definitely aligned with his vision and that is to solve the litter and trash collection in the
streets. In addition, turning the problem of garbage to opportunity is a great
entrepreneurial habit used by Poss.

3. Given a change, with the same garbage problem here in the Philippines, how will you solve
in the entrepreneurial way? State your solution/s

Garbage problem here in the Philippines is a major problem we should deal with. In
entrepreneurial way, I would like to deal with this problem by recycling plastic and other
trashes into more useful things that can also be a source of income.