By Daniel Butcher
People who can approach job searches with a flexible mindset about their professional identity are better able to bounce back after devastating job losses or even injuries that affect the types of jobs they’re able to do.
Academy of Management Scholar Dean Shepherd of the University of Notre Dame said that if people get fired or laid off, butt heir job is not a critical part of their identity, then they can often recover relatively quickly. But many people’s self-image is intertwined with their career.
“If you can find a job that’s kind of related to that identity, then you’re probably going to be fine, but if it was a strong part of your identity and you’re unable to capture a job that represents that identity, then you can fall a long way,” Shepherd said.
“But the interesting aspect is that when you hit rock bottom, it’s actually quite freeing—it’s like freedom when you hit the bottom, because you say, ‘It can’t get any worse,’ and suddenly, when you hit the bottom, you actually start to think more freely and can engage in this identity play,” he said.
Research on musicians and dancers who have experienced traumatic events uncovered surprising findings about self-reinvention and reimagining one’s professional identity to achieve growth in a new career.
“Professional musicians and dancers who have an injury and can no longer perform those roles that they’ve been performing their whole life and was a strong part of their identity, and also people who get injured and have become paraplegics or even quadriplegics, after a while, they can actually perform well in a different career, and they look back and say, ‘The best thing that ever happened to me was getting that injury,’ Shepherd said. “It wasn’t at that time, of course; it was devastating, but it allowed them to go and pursue something else, and that something else became what they felt was actually something better than what they were before.
“In some ways, maybe it’s better, or maybe they’re just telling themselves it was better, but either way, that’s a good thing that happened or at least a silver lining,” he said. “So I suppose that’s the advantage—when we hit rock bottom, then we can start to really pursue something else—we can play with these different identities and find something that may actually lead to an outcome that’s better than what would have happened if we had never lost that original career in the first place.”
Of course, for some, there’s a sad side to that kind of story.
“Some people engage in chronic dysfunctional behavior and take drugs and remove themselves from society and their own way of thinking after suffering a professional setback or injury,” Shepherd said. “But if you can engage in this identity play, then you can maybe find a better version of yourself.”
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Tagged #Resilience #PersonalGrowth #CareerDevelopment #IdentityFlexibility, career change, career identity, career setback, fired, identity play, job change, layoffs, professional identity, restructuring, trauma
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Famous Mentors Can Be a Blessing and a Curse
By Daniel Butcher
Students and young professionals who get well-respected, or even famous, mentors gain can gain skills that help put their careers on promising trajectories. But mentees’ identities and reputations becoming connected with prominent mentors can provide both benefits and challenges.
Academy of Management Scholar Bess Rouse of Boston College said that, on the positive side, relationships and connections with prominent mentors can improve mentees’ opportunities. On the negative side, the entanglement of an individual’s career with a prominent mentor can also lead to being taken for granted, having their contributions underappreciated, and feeling overshadowed. She and her coauthors of an Academy of Management Review article refer to this as the “paradox of promise” that complicates mentees’ building meaningful career narratives.
“We were looking at mentorship in a creative context, and all of us were able to draw from our experiences as well, but our research findings apply to any place where there is a strong mentor figure where you learn by doing and being around somebody who is experienced and renowned in their field,” Rouse said. “This paradox of promise can happen—we know that working with very prominent people in the field is useful; it can help you get connections, and you learn a lot.
“This person is well-known, because they are very skilled at what they do, and so you can see that happening, where you’re learning very easily from this person, because they have a lot of knowledge to give you, but at the same time, you have the shadow over you when you go out and try to make a name for yourself,” she said. “You’ll often be referred to in context with your mentor, and so it’s very hard to break out and establish your own identity, because people assume—maybe rightly, maybe wrongly—that basically you are just the output of this other person and haven’t really established a voice on your own.
“And so that can be very challenging for people, especially if you are driven, as some of our informants were, to really make a name for themselves and separate themselves from their mentor.”
It can be difficult to craft your own career narrative in the way that you’d like if most people know you based on the work that you’ve done in the shadow of a successful, celebrated mentor. That said, some mentees embrace their association with such a figure.
“There are other people in our study that were much more comfortable to build on the legacy of that mentor and feel that they were the next stage of that—helping that legacy to live on, contributing to that legacy was really important to them, and they were able to find meaning from that,” Rouse said. “This is really about what you are trying to get out of your own creative career as a protege and thinking about the different ways to find career success.
“An interesting thing about our study is we found that all people found a way to craft a career narrative and find meaningfulness,” she said. “They just took different paths for doing that.”
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Why Mentees Should Highlight Similarities with Mentors
By Daniel Butcher
While high-quality mentorship boosts protégés’ careers, a mentor who is disinterested or unmotivated doesn’t provide value to mentees. To maximize mentors’ networking help and advice, mentees should highlight similarities with their mentor to strengthen mutual identification.
Academy of Management Scholar Bess Rouse of Boston College, who coauthored an Academy of Management Review article with Beth Humberd of the University of Massachusetts Lowell on this topic, said that the effectiveness of mentoring depends on the mentor identifying with a mentee to form a close relationship.
“It has been interesting to watch the shift of people understanding more about this network structure and broader constellation of developmental relationships,” Rouse said. “One of the big pieces of advice that a lot of people would give is don’t look for the be-all and end-all of a mentor that’s going to do all of these different functions for you.
“It’s really diversifying networking and career-development efforts and understanding that different people have different strengths and weaknesses when it comes to professional relationships,” she said.“Some people are much better at psychosocial support, the trust and friendship part of a mentoring relationship, whereas some people are much better at the career side of it and giving sponsorship opportunities or challenging you or reading your work.
“Those benefits of mentorship can come from a range of different people.”
Talking about pastimes cultivates identification
People enjoy talking about their pastimes and things they have in common with each other. Mentors are no exception.
“Think about not only how we are similar in terms of our work experience or where we want to go, but also commonalities as simple as like hobbies—if you find somebody who plays tennis and you play tennis, use that as a conversation-starter,” Rouse said. “Think about how you can develop an easygoing relationship that then can build into a mentoring relationship.
“You shouldn’t underestimate those various forms of connection that you might use for networking and relationship-building, and think about doing those in small doses, rather than thinking, ‘I’m going to find my mentor today’—it’s establishing a good rapport with potential mentors,” she said. “There’s a whole body of literature on positive work relationships and high-quality connections—ask yourself how you can build smaller connections into bigger relationships.
“Especially as an introvert, thinking about having those particular strong, high-quality connections is what ends up building into those valuable mentoring relationships.”
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Your Skills, Not Your Jobs, Are Part of Your Identity
By Daniel Butcher
Rather than focusing on job titles or specific industries during a job search, candidates who imagine how their skills and experience could translate to a variety of roles are better able to bounce back after career setbacks and transition from one professional identity to another.
Academy of Management Scholar Dean Shepherd of the University of Notre Dame said that research he conducted on disabled veterans found that some of them did well in transitioning to new careers after leaving the military, while others did poorly.
“The ones who did poorly looked at superficial links between their previous jobs in the military and the civilian jobs they were considering: ‘I was a sniper in the army; we don’t need anyone to be a sniper in in civilian life but the police use weapons’ or ‘I used to drive a tank. What can I do in civilian life? I can drive a bus,’” Shepherd said.
“But other people—the ones who did well—looked at it more structurally and said, ‘In the military, I learned discipline; I learned to be able to attend to important responsibilities for an extended period of time; I learned how to follow orders and execute those things at a structural level, which means that in entrepreneurship, I can do X and Y,’” he said.
For example, the newspaper, magazine, and publishing industries have been disrupted by the transition from print to digital advertising, the availability of free content, the rise of social media and AI, and other factors, which has lead to a structural decline in the number of jobs in those areas.
“This concept relates to the media landscape; if you lose a career in journalism, you could say, ‘Okay, I could find something that superficially matches my professional identity, such as PR [public relations] or media relations, or maybe journalism means other things: ‘I’m an investigator’ or ‘I’m a writer who’s a subject-matter expert on these things—what could that lead to?’” Shepherd said.
“And it might lead to something that on the surface looks like something very different but that structurally uses the same skills that you used in your previous career,” he said.
“The advice is to try and look at things not just superficially but rather at a deeper level and consider how your skills can transfer to a different career and professional identity.”
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Disabled U.S. Veterans Are Finding Success as Entrepreneurs
By Daniel Butcher
A higher percentage of disabled U.S. military veterans become entrepreneurs compared to the general population due to their experiences both before and after getting injured, according to research by Academy of Management Scholar Dean Shepherd of the University of Notre Dame and his colleagues. Most of the disabled veterans returning from Afghanistan and Iraq who became entrepreneurs did so for two main reasons.
“The first reason is they felt that following orders were the things that almost got them killed, and what they wanted to do now was to run their own businesses where they were the boss and they weren’t following someone else’s orders,” Shepherd said. “There’s a mental aspect here that causes them to say, ‘I cannot work with someone who’s telling me what to do—I must have that kind of freedom and independence.’
“And in a related issue, they spent so much time in hospitals being told what to do by doctors and nurses that, again, they had this strong desire to become entrepreneurs because they could follow their own orders,” he said. “And the other thing was, because of their disabilities, they still had a lot of medical work that they needed to go on, but also sometimes they’ve had traumatic headaches and different symptoms, which meant that they couldn’t be regular about when they could attend and perform work.
“And under those circumstances, an entrepreneurial career gives them the freedom and flexibility about when they work, and they can work when they’re feeling good—they can work around their medical visits and things like that—and so that’s why entrepreneurship was a good career for those people.”
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Immigration Debates Rarely Mention This Important Fact
By Daniel Butcher
Many immigrants—both legal and illegal—are willing to do the kinds of unglamorous, undistinguished, and downright dirty jobs that no one else wants to do, according to Academy of Management Scholar Dean Shepherd of the University of Notre Dame. He likens their psychology to that of Dalits, India’s most oppressed and stigmatized people, many of whom are garbage collectors who scavenge through slum trash dumps for items to sell. They’re commonly called “ragpickers.”
“In some ways, immigrants think like the ragpickers, because they say, ‘I’m doing this so we can eat tonight, but I’m mainly doing this so my children get educated, so that they can get a good job, so that they can marry well, and so that our family’s future generations are going to move forward,” Shepherd said. “And researchers have found that in a lot of immigrant communities, they place a high emphasis on the children’s education—and that’s the reason they’re willing to do dirty jobs.
“They come over to a new country, and they work very hard in order for their for their children to have a better education,” he said. “That’s why they immigrate in the first place, in order to have a better life for their family.”
In the United States in 2023, foreign-born workers were more likely than native-born workers to be employed in service, natural resources, construction, and maintenance jobs, as well as production, transportation, and material moving occupations, according to the U.S. Department of Labor’s Bureau of Labor Statistics. Foreign-born workers were less likely than native-born workers to be employed in sales, office, management, professional, and related occupations.
“We spoke to ragpickers and other entrepreneurs that live in slums, and we asked them, ‘What are your personal goals?’ and they almost don’t understand the question, because their goals are all to do with the next generation,” Shepherd said. “They don’t see much hope for themselves, because when we asked them, ‘What do you plan on doing after retiring?’ they told us, ‘What retirement? I’m never going to retire.’
“It’s all about future generations, and immigrants do the same thing,” he said.
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Finding Meaning in Menial Work
By Daniel Butcher
Even if it’s a dirty job, somebody has to do it. It will probably make you miserable, though, unless you see it as a means to fulfill a purpose or achieving a goal.
Academy of Management Scholar Dean Shepherd of the University of Notre Dame said that research he conducted on poor people living and working in India’s slums shed light on how to find meaning in any job.
“When you’re at work and you aren’t having such a terrible day and you think, ‘but imagine if I was picking up trash in the slums of India—how could you find meaning in that? How could you be happy?’ because they describe their work as dirty,” Shepherd said. “They’re walking through effluent and rubbish and dead animals and picking everything up and getting the trash to a landfill or recycling it.
“But even then, they had made meaning, and they did it through a couple of ways: One was to look back at their [own and their parents’ job] history and say, ‘It was my destiny that I pursue these types of things; my family has done it for a long time,’ so it had meaning, because it put them in a historical context,” he said. “They also gave themselves a pat on the back in the present, because they say, ‘Because I’m doing this, we can eat tonight, and my children can go to school tomorrow,’ and then they would also think about the future to say, ‘It might take multiple generations to escape poverty—by me doing this, my children are able to go to school; if they go to school, they might get a good job, they might marry well, and they can move out of the slum.’
“So in some ways, they’re saying they cannot change their condition because it’s history; on the other hand, they say, ‘but I can change the history of my children,’ so in some ways, it’s a contradiction that they hold in a way that makes them feel better, because they think, ‘I’m helpless; I can’t blame myself for the situation, but I also have some ability to influence the future of my children,’ which actually also gives them meaning, so they have meaning coming from from both ways of thinking about doing a dirty job.”
That’s despite the fact that dirty work is stigmatized in India, as it is in many countries.
“When you know the person who’s engaged in dirty work, often they have intersectionality, which means if you if you come from a stigmatized family or class doing stigmatized work, you’re often from other stigmatized groups,” Shepherd said. “In this case, there was dirty work.
“They came from the lower caste, and they lived in the slums, and both of those were highly stigmatized, and in most cases stigmatized work, like being a mortician or a sex worker, is often tied in with other intersectionality, things like gender, location, place of origin, those types of things,” he said.
“So finding meaning in this work has a little bit of generalizability to other forms of dirty work and other stigmatized groups.”
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Resilient Entrepreneurs Don’t Shy Away from Failure
By Daniel Butcher
Some of the most common mistakes that entrepreneurs make are focusing too much on past successes, pretending that hard work always results in success, and not learning from failure, according to Academy of Management Scholar Dean Shepherd of the University of Notre Dame.
Shepherd said that the shocking closure of his own father’s business was what inspired him to study the effects of entrepreneurial failures. He described loss orientation as communicating about the disappointing or traumatic event and restoration orientation as thinking about other things, including next steps.
“It was a family business in residential construction formed around 1965—I am not sure how large it was, but [it built] maybe 100 houses per year, and there were no full-time employees; my father used a lot of sub-contractors,” Shepherd said. “It started to experience some difficulties approximately one year before he closed it down.
“He was very much a restoration-orientation person, so he refused to talk about it, just like a typical Australian male, and he and I never discussed it,” he said. “He never engaged in loss orientation, [grieving the] loss of his business; he never oscillated between loss orientation and restoration orientation, and so he suffered for a long time as a result of that.
“I did research on scientists working in Germany, and when their projects failed, those that were able to oscillate between the two, loss orientation and restoration orientation, were the ones who were most successful at processing the setback or loss, bouncing back, and moving forward.”
Shepherd cited the work of Eric Ries, an entrepreneur and author of The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses, as emblematic of a strain of entrepreneurship that doesn’t shy away from failure but actually highlights the need for it to inform the organization’s plans, budgeting, and initiatives.
“A lot of entrepreneurs now, including the author of The Lean Startup, are trying to think about different projects like real options, so they’re probes into an uncertain environment, and if we have many of them, then we gain information, and as we get that information, we can kill some projects and redeploy the resources to the ones that show promise,” Shepherd said. “That’s a way to try and manage the uncertainty, and it really has failure as part of the process, because we must terminate those initiatives that don’t show promise in order for this strategy to work.
“If we have an anti-failure bias and we choose not to terminate them, or we take longer to make the decision to discontinue them, then the downside losses actually start to increase,” he said. “The best examples are my dad, who struggled to process failure, and the studies of the German scientists, some of whom were able to deal with failure in a productive way.”
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Effective Persuasion Calls for Appealing to Emotions Over Logic
By Daniel Butcher
In persuasion, whether it’s gaining support for a business plan, selling a product or service, or seeking forgiveness after a misstep, it’s crucial to pay attention to emotions and respond in kind. Academy of Management Scholar Tim Pollock of the University of Tennessee, Knoxville said it’s most effective to show people that you’ve actually listened to them and tried to understand how they’re feeling, rather than argue with them based on logic or data.
Pollock said many organization leaders face challenges responding to emotional problems or reactions with rational analyses and logical arguments.
“You can’t have an emotional impact by relying solely on logical reasoning, and it isn’t going to have the effect that you hope for,” Pollock said. “If we’re having a rational discussion, we’re being analytical and saying, ‘Okay, let’s look at the data. Let’s figure out what’s going on.’
“That can work really well in some cases, but when I’m reacting emotionally, trying to explain to me why I’m wrong or why things aren’t as bad as I feel they are, or providing me with data is not going to be an effective strategy,” he said. “Parents know this; think about if you’ve tried to have a rational argument with your kid when they’re in the middle of a meltdown—it doesn’t work very well, and so it’s the same principle.
“You have to read of the situation, understand where the emotions are coming from, and address the source of the emotions, not try to provide an analytical assessment—you can’t answer emotions with analysis.”
A related communications pitfall to avoid is making a crisis-management statement that deflects responsibility, comes off as insincere, or doesn’t contain an actual apology.
“In the face of misconduct, they’ll try to rationalize stuff, as opposed to just saying ‘You’re right; I’m sorry’ or to go back to Bill Clinton, ‘I feel your pain,’” Pollock said. “If you say that and apologize and mean it, it’s more effective at diffusing the situation.
“Do not give the performative non-apology or deflection of blame and accountability,” he said. “‘We’re very sorry, but it isn’t really our fault, but we’re still sorry this happened to you,’ as opposed to, ‘We’re sorry we did something,’ and a lot of their apologies sound more like ‘We’re sorry we got caught,’ as opposed to, ‘We’re sorry for what we did.’”
A sample of Pollock’s AOM research findings:
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Successful Entrepreneurs Leverage Knowledge and Motivation
By Daniel Butcher
Successful entrepreneurs focus on what they know best and care most about when brainstorming and evaluating business ideas, according to Academy of Management Scholar Dean Shepherd of the University of Notre Dame.
“Entrepreneurs often say, ‘Where do I look for an opportunity?’ Now, I always try and say, ‘We’ll look internally first at your own history,’” Shepherd said. “‘What is unique about you? What unique knowledge do you have?’
“My path is unique, just like every person’s path is unique, and it’s given me knowledge that other people don’t have,” he said. “If I can think about things from that perspective, then I’m more likely to come up with an opportunity that other people haven’t thought of in the past.
“In thinking about it that way, I’m more likely to see opportunities related to my motivation, something that I’m passionate about, and so opportunities are often identified at the intersection of my knowledge and my motivation.”
People who are knowledgeable in a particular field are better equipped to spot signals of potential opportunities in that area. Experienced entrepreneurs can also gauge the chances of success of a particular idea, even if it’s just a rough estimate, to decide whether it’s worth pursuing.
“If I’m highly motivated by certain things, then I’m more likely to see signals in the environment that relate to that motivation, and so it’s the combination of those two that allows me to identify opportunities,” Shepherd said. “I also evaluate opportunities in a similar way.
“I say to myself, ‘Do I have the knowledge, the skills, and the ability to be able to execute this opportunity? Is it feasible?’” he said. “And I also asked myself, ‘Is it desirable? Is it something that I want to do? If I do it and exploit this opportunity, does it give me the things that I want to have?
“And so it’s really that intersection of knowledge and motivation that is the how do we identify opportunities, and also whether we want to exploit those opportunities or not and what would be required to do so.”
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Entrepreneurs Face Several Dangers
By Daniel Butcher
While entrepreneurs’ success stories get most of the publicity, the dangers they face are rarely talked-about elements of entrepreneurship.
Academy of Management Scholar Dean Shepherd of the University of Notre Dame noted that professors, business-book authors, and other journalists often tout the benefits of entrepreneurship without talking about its downside: Entrepreneurs often struggle and fail, sometimes with bad consequences for themselves, their colleagues, their loved ones, and even society.
“For quite a while, I’ve been researching entrepreneurs losing their business and people working on projects at an entrepreneurial firm when those projects fail,” Shepherd said. “The dark side of entrepreneurship is the negative emotional and psychological costs.
“The downside of entrepreneurship is the loss of your capital, your money, your personal finances,” he said. “And then there’s the destructive side—we always assume that entrepreneurship is doing good for other people, but it may not be.
“There might be some people who are greedy and engage in entrepreneurship that has a net destruction of wealth, so that really actually harms the natural environment or harms other people in order to just benefit themselves, or they didn’t mean to do it, but it just worked out that way.”
Opportunities exist in environments of uncertainty, so failure is going to be part of entrepreneurial endeavors. Entrepreneurs—and the people writing about them—should ask: What about the downside risk?
“Everyone says entrepreneurship is so good, and I do love entrepreneurship, but if we don’t understand the dark side, then how do we help entrepreneurs overcome some of the challenges they face being an entrepreneur, particularly when entrepreneurs pursue opportunities,” Shepherd said.
“We have to be able to help entrepreneurs minimize the potential losses from their action and avoid destructive entrepreneurship,” he said. “If we don’t understand why and how some people destroy societal wealth or the environment, then how are we going to be able to stop them?”
Shepherd highlighted a key question: “How are we going to be able to educate entrepreneurs to make sure that they don’t do that, and that they’re productive, rather than destructive?”
“The whole stream of my research along those lines is to try and really understand the flip side of the coin, because if you don’t understand the flip side, then you don’t understand the coin completely,” he said.
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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