Colleagues, I want to talk with you about the technology of personnel assessment and development, which, it seems to me, has not received adequate recognition and wide application in HR practice. I'm talking about business simulations.
I myself am engaged in the development of business simulations both for the purposes of personnel assessment (in the structure of assessment centers) and for the development of employees. However, communicating with many colleagues, I got the impression that this technology is treated either skeptically or with some misunderstanding.
In my brief review, I would like to highlight the key features of business simulations, the purposes of their application in business, and some development features. I would be happy to hear the opinions of colleagues, questions and, perhaps, my own experience in using business simulations.
business simulation (simulation game, business simulation) is a modern technology for assessing and developing personnel, based on modeling real business processes that are as close as possible to the conditions of a particular Company, and allowing participants to gain experience in solving complex management problems in artificial conditions.
Business purposes:
Exist two main goals use of business simulations in Companies:
Personel assessment. With the help of a business simulation, you can get an accurate assessment of the level of development of an employee's managerial skills, his ability to analyze the situation, prioritize tasks, build effective interaction with other participants in business processes and make informed, cost-effective decisions.
Staff development. The business simulation is unique simulator for development managerial qualities and business thinking of employees. The maximum proximity of the content of the simulation game to the real conditions and business processes of the Company allows its participants in the training format to practice solving complex managerial problems, organizing effective cross-functional interaction and learning how to make informed managerial decisions.
Types of business simulations
All simulation games can be divided into two big groups:
Standard business simulations (simulate typical business processes)
Adapted business simulations (developed taking into account the characteristics of the customer company and reflecting the reality of a particular business, its key tasks, problems and opportunities as accurately as possible)
Standard business simulations are relatively cheaper and more accessible to the Company than adapted ones, which require about greater time and material costs. At the same time, adapted simulations have a deeper educational and developmental effect, due to their specificity and fine-tuning for the customer's business.
There are several types of business simulations:
computer simulations assume that participants work with the company in the format of a computer program and manage it while sitting at a computer monitor;
in desktop simulations The company and all business processes are displayed as a card and chips on the table of participants;
business simulation can also be represented as businesses in miniature , with imitation of the main technological and business processes.
Recently, the demand for the use of business simulations has increased, modeling crisis situation in company. This is a great opportunity in safe environment develop the skills of the Company's managers in the field of anti-crisis management and practice in accepting effective solutions in high risk environments.
The essence of technology
Business simulation provides each participant with an excellent opportunity to try himself in managerial role and assess their effectiveness in making complex strategic decisions. The main goal of the simulation, as a rule, is to effectively organize the activities of the Company, to survive in competition to ensure the successful development of their business, profit growth and, as a result, increase the value of the Company.
The simulation requires participants serious concentration, since part of the work is devoted to analyzing the market, its trends, determining the internal and external problems of the Company, planning the strategy and tactics of decisions, etc. To achieve success, the participant needs to understand the internal features of the Company, highlight it strengths, opportunities and limitations. In addition, taking management decisions, you have to take into account the interests and needs of other participants, who are leaders structural divisions The company, its customers, and sometimes competitors.
Being command form of work, business simulation provides a high level of emotional involvement of participants who are completely immersed in the gaming environment and focused on achieving high results. This allows everyone to show their leadership and communication skills, organizational skills.
Key feature of business simulations is to use a unique learning algorithm. There is no theory here. Participants first immerse themselves in the problem situation and try to solve it using their existing knowledge, skills and resources. When they are faced with the fact that the existing capabilities are not enough to solve the problem, they begin to independently look for new ways of action, request Additional information. At this moment it happens genuine learning and development, a person must feel the value of new knowledge through their own experience of trial and error. Only in contrast to real business, in simulation the cost of these errors is not so high.
A business simulation does not end with someone winning or losing.. It always ends with a certain result and the experience gained by the participants. It is the team result and the experience of each that is analyzed by the host at the end of the main part of the game. Summing up is no less important part of a business simulation than the game itself. The quality of this work determines how deep the developmental effect each participant receives.
Features of the development and conduct of business simulations
The process of developing a business simulation from scratch is a rather lengthy and costly process. It is necessary to clearly define the goals and objectives that the business simulation will solve. Then it is important to correctly highlight the key business processes that will be modeled in the game. This requires the developer to work closely with customer representatives, people who are expert leaders in the business processes being described. It is also necessary to single out a pilot group from among the Company's employees who will participate in testing a new development, identifying areas that need improvement. On average, the process of developing an original business simulation takes about 6 months.
Use of ready-made standard solutions save time and material costs. The disadvantages of typical business simulations can be leveled by additional adaptation of the game structure to the business reality of the customer. This process takes on average 2-3 months.
And finally, you can use ready-made business simulations without additional adaptation. In this case, there is a risk that the experience gained during the game will be difficult to use in real practice due to the difference in the specifics of gaming and real business processes. Minimize this risk it is possible due to the professionalism of the leader when summing up the results of the game, when the conclusions and methods of decisions received by the participants will be analyzed in relation to the current reality of the Company and its features. This can help participants understand how the experience, knowledge and skills gained during the game can be used in solving problems. practical tasks at your workplace.
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Sincerely and Best wishes, (c) Igor Bespalov.
Ready to discuss. :) Have you used business simulations in your practice? If yes, what tasks were solved and how successfully?
Have you ever developed simulations? If so, on what topic and what was the most difficult to develop?
The business simulation has educational goal: the acquisition by the participant of the relevant skills and competencies. This qualitatively distinguishes it from other software products, in particular economic games, which for the most part belong to the field of entertainment.
It should be noted that the complexity and consistency of approaches that are present in the concept of business simulation make it possible to use elements of the game process in the educational process, which, when properly balanced with learning tasks, increase the effectiveness of educational results. This is what makes it possible to distinguish business simulation in separate category.
The interactive nature of business simulations provides ample opportunities for participants to acquire and develop their primary skills and competencies in managing a company: building strategies, solving tactical and operational tasks - that is, learning to do everything that can only be learned in practice.
Business simulation is widely used as a teaching method in the Western education system, in particular in universities and business schools, not only to train students, but also to train managers.
Story
The first form of using any simulation for educational purposes was the game process. From history it is known that in China about 3,000 years BC. e. for military training, a special simulation game was used. This simulator was like chess.
- growth in the number of students;
- an increase in the number of new training courses;
- increasing popularity various methods education, including non-classical;
- availability of new technologies.
Business simulations in the Ukrainian educational system
In the early 1990s, in the countries of the former Soviet Union began to study and apply in practice models public life Western model, including education models. For the first time, the use of business simulations as a teaching method on the territory of Ukraine was recorded in 1995, when, with the assistance and under the control of the Ukrainian business school International Institute of Management (MIM) in Kyiv, the first training business simulations were introduced.
Sources
Wikimedia Foundation. 2010 .
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Find out what business simulation is, what are the purposes of its use, what is the essence of technology and the differences between business simulation and business games, get acquainted with examples of business simulation and ready-made cases.
From the article you will learn:
What is a business simulation, what are the purposes of its application in business
Business simulation or simulation game refers to modern technologies, which are used not only for staff development, but also for evaluation. The bottom line is that employees can gain experience in solving complex problems by participating in a simulation game where real business processes are simulated that are close to the conditions and specifics of a particular company.
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The main purpose of a business simulation is:
- in staff development. simulation game serves as an excellent simulator that helps develop managerial skills, hone certain qualities and shape business thinking. If a used game, in which real business conditions are simulated, participants train, master the skills of behavior in difficult situations that arise in real conditions. In addition, group forms of such games allow you to learn interfunctional interaction, the basics of mutual assistance;
- in staff appraisal. During the game, it is quite easy to determine the level of development of the skills of a specialist. The HR manager will be able to assess the ability to prioritize, analyze the situation, build an effective chain of interaction with other participants, solve tasks etc.
Business simulation example
Before concluding an agreement with a provider for the purchase of a simulation interactive game, you should first try out this game by running a demo version. If it turns out that there are some negative parameters and the result is incorrect, you should point this out to the developers. If everything is quickly fixed, this is a strong argument in favor of cooperation with the selected provider.
Business simulation in a bank: an example
Target:
- formation of management principles;
- management strategy development ;
- teamwork skills;
- work out the technology of accepting complex management decisions.
Suggested concept:
Become the leader in terms of capitalization for several years in the face of competition between several large banks, achieve effective work with the instability of the market economy.
Instruments:
- building a management team;
- distribution of roles;
- development of a strategy for the next 5-7 years;
- selection of the main portfolio of products or services with which work will be carried out;
- choose the direction of development and determine the pace;
- find a balance between risk and benefit;
- work outbusiness competencies ability to plan and achieve results.
Result:
As a result of the business simulation, all goals were achieved. In the final definition, this was reflected in the efficiency of the bank. Employees have learned to make decisions, interact, set goals and achieve them, develop in a highly competitive environment.
Types of business simulations and business games
Business simulations and business games are divided into two groups:
Standard games are relatively more accessible and much cheaper. Adapted require an investment of time and material costs. But at the same time, adapted business simulations have a great developmental meaning, their specificity is aimed at honing the skills that employees currently need.
Over the past 15 years, a huge number of employees have received various trainings and they have the impression that they “know everything”. Unfortunately, this knowledge does not always translate into reality. working life. Hence the popularity of business simulation - immersion in virtual reality with the laws of real business. It may include a business game, and case studies and role-playing games. But the key principle remains - reliance on real business processes. This feature distinguishes business simulation from training. There is a minimum of theory and a huge amount of practice that involves participants, reduces the criticality of their perception and provides a field for practicing skills. However, this method can also help with those employees who have not been trained on the desired topic - just for them, theoretical blocks are included in the business simulation. And in this case, the simulation becomes for them both problematizing, and teaching, and reinforcing, and motivating.
During the business simulation, participants independently draw conclusions and gain their own experience, which they then implement into the working reality. The Standard Business Simulation is a typical simulation training program. This model is actively used in personnel training by many companies. A business simulation adapted to the client, i.e. made “to order”, is created taking into account individual features companies and business specifics. If we take into account when developing what the participants already know and use it, we get an environment in which the internal motivation to use these tools increases many times over. Also, employees work out algorithms in various practical cases and it is much easier and easier for them to transfer this to their daily activities.
There are two main types of business simulations - desktop and those that involve the use of IT technologies in the simulation.
Each has its own advantages and disadvantages.
| Desktop business simulations | Electronic business simulations | |
|---|---|---|
| Technical side | Simplicity and clarity. Participants can see how their finances move in accordance with the management, production, marketing cycles. | The ability to use a large number of indicators and sections of success, complicate or simplify the game depending on the level and preparedness of the audience |
| Terms and Conditions | Possibility of carrying out in any conditions (no dependence on technology, for example) | Required internet and technology. In order not to waste time processing the results of game rounds (everything is on the server), be flexible in the choice of indicators and their evaluation. Analyze across different sections. There is also the possibility distance learning, finding the coach and participants far from each other. In this case, you can use the classic "virtual" meetings to discuss the results and "homework" |
| The role of the coach | High level of dependence on the qualifications of the coach. Feedback on the results can only be obtained after the trainer has manually processed the results received from the participants. This often negatively affects the dynamics of the program and reduces the interest of the audience in the process. The teacher must have a deep understanding of the topic, because reaching the top audience, he can only rely on himself. | The influence of the coach's qualification on the quality of the result is lower than in board games: the game itself contains so much information, tips and comparison criteria that in some cases the coach looks like an "absolute genius"*. |
| Results processing | Problems can start when you need to gather a large audience. The process of collecting and processing data becomes endless, in parallel it is necessary to answer the questions of the participants. Plus banal inconveniences such as finding a suitable room, etc. | Fast processing (5-15 minutes depending on the number of comments), which allows you to keep the intrigue of the program throughout the game |
| Other possibilities | Thanks to the thoughtfulness and richness of information, the convenience of the interface for the trainer, it is possible to certify internal specialists for conducting in-house business simulations for the programs. As a result, this allows to significantly reduce the cost of the program for the company. |
Like any automating element of labor, business simulation reduces the role of a person. The "engine" of the game is interesting in itself, and the program can give such a level of analysis and recommendations on the game that it takes extra effort to fail the training. In terms of the quality of the result for participants, business simulations based on software safer for coaches, who have a lot of opportunities to look like experts due to the opportunities that IT modeling provides specifically for leaders. On the other hand, it does not follow from all of the above that business simulations based on IT modeling can be conducted by anyone.
The main tasks that business simulation solves:
Implementation of new business processes with minimal resistance;
Search for errors and ways to optimize current business processes;
Formation of the strategic vision of the company and business;
Adapting to changes in the company;
Search for solutions difficult situations in company;
Development of skills for any necessary competencies;
Improving the quality of cross-functional interaction;
Introduction of corporate culture and values;
Evaluation of employees in situations as close as possible to reality;
Team building in a business environment;
Changing your attitude towards your work. "Restart" motivation for their work activities.
In the United States, where business modeling is most popular, instructors with Ph.D. (academic degree corresponds to our Ph.D.). In other respects, information content, visibility, the ability to compare a large number of indicators, and, most importantly, the speed of processing the results of game periods, allows you to maintain a high level of involvement of participants throughout the program.
In addition to the technical side of the issue and the aspect of fascination for the players, it is possible to distinguish two formats for the learning process.
The first one is the classic educational process used in Western universities, when during the semester each lesson corresponds to one game period (1 fiscal year). Between meetings, students receive homework assignments, analyze cases, etc. In this format, participants have time for a deep understanding of the game and a better mastery of knowledge.
The second is corporate training, where time constraints in practice are of key importance, since the separation of employees from the work process is rarely easy. In this case, programs from 2 to 3 days are used, where participants are completely immersed in the gameplay.
If the effectiveness of business simulations within an academic university has been proven over the years and is obvious (this is a combination of format dynamism, the ability to integrate knowledge gained in other subjects, and build a complete picture of business interaction inside and outside a virtual corporation), then the experience of business games in corporate universities not so clear.
From positive aspects It is worth noting the variety of tasks that can be solved using simulation within the framework of training center. Starting from teaching specific knowledge in the field of business understanding: working with financial information, pricing, disposal production capacity and ending with the choice of company strategy and the development of influence skills in the team.
An undoubted important advantage of a business game is an emotional experience for the result - participants rejoice and rejoice when they take first place in the market, grieve, lose profits, suffer from poorly predicted sales and aggressive actions of competitors. Sincerely experiencing a variety of and often unexpected feelings creates a high level of both involvement and learning. This level is hard to achieve with another tool - a seminar or training.
Restrictions:
A high level of professionalism of developers in the field of game modeling is required;
duration. Development time from 1 to 6 months;
High responsibility of the Customer: in particular, the ability to clearly formulate a request, understanding the root of the problem, willingness to share the necessary (real!) Information, etc. are important.
The cost of the product is higher compared to training.
With all the intensity of emotions and tension of nerves, according to the feedback of the participants themselves, they are most pleased with the safety of the decisions made. Some even wrote that they were able to “play hooligans and try out a number of absolutely absurd actions.” This aspect is an advantage of a business simulation, as participants can try the most incredible scenario of managing a company, test their hypotheses in action and the worst that can happen to them is the realization that their decisions are wrong.
The poignancy of the experience makes business simulation an ideal tool when you need a format that combines elements of entertainment and education so that the time and money spent on such an event will bring not only good mood but also practical benefits. HR departments often face similar challenges when organizing an event for their management. In the course of a special term - "training" - from the English words training (training) and entertainment (entertainment).
The experience of conducting such a game indicates that in this case the motive of entertainment will quickly prevail among the participants and the educational element is reduced to a minimum. In these situations, it can be recommended to focus on the aspect of group dynamics and prepare a program in the spirit of team building. A holistic vision and business management especially contributes to the understanding by managers of the role of a function adjacent to them, the role of foreign departments in achieving the company's result.
In terms of areas of knowledge, business simulation most fully meets such tasks as programs such as "Finance for non-financiers". The game not only provides knowledge of basic terms and reports, but also allows you to understand how to use financial information to make management decisions. As a result, boring and poorly remembered terms turn into "live" indicators of the company's health.
The use of simulations for function leaders can be very valuable. As a rule, this category of managers is more focused on the work of only their department. They do not always see the activities of their function as part of the activities of the company as a whole. This perception of the work of their unit often leads to complexity in cross-functional interaction, and often to conflicts.
The situation can become more complicated if such a function leader is moved around career ladder to a higher management level where an understanding of the business as a whole is required. Simulation is a great opportunity to demonstrate how each function is important to the organization and ignoring the interests of colleagues can lead to sad consequences, to form in managers a common understanding of the business, which is necessary for leaders, from the middle management level to the most high level guides. Based on all of the above, the reader may get the impression that, finally, there is a tool for personnel training that can solve all three problems (interesting for participants, useful for the company and strengthens the credibility of HR) that arise every time before the training service and staff development when choosing a program.
Advantages of business stimulation:
The ability to quickly "immerse" in a business situation and understand business processes;
During the game, participants learn to manage both tactical and strategic goals;
Business simulation is a risk-free zone - mistakes in the game will not lead to the collapse of the business. This allows you to try different strategies and tactics, observe their consequences and draw conclusions.
During the game, participants independently draw conclusions and gain their own experience, which is then much easier and faster to implement into the working reality. Overcoming critical thinking.
Employees can participate in the simulation different levels, which will rather enrich the game and make it more useful;
The opportunity to gain experience in decision-making from different positions, to see the process from different points of view;
The possibility of a systematic analysis of the situation, the development of the ability to see and take into account more than one causal communication, but a system of interrelated factors affecting the result;
A high degree of freedom in the development of the situation requires the participants to use knowledge and skills in an integrated way, the ability to be flexible in choosing tools and approaches to the solution;
Constant monitoring of activities and the scheme of the game "Decision - Result - Analysis - New Solution" allows you to demonstrate the effect and result of possible solutions in the shortest possible time;
Teamwork and the competitive moment provide a high emotional involvement of all participants, ensure the exchange of best practices.
Do you need to evaluate an employee for certain competencies? Due to deep immersion, participants give out exactly the model of behavior that they adhere to in real life. Just when developing, it is necessary to take into account that it is the assessment that is the key goal. Business simulation allows you to lay the desired behavior model in certain situations. This effect is achieved through an almost instantaneous system of rewards and punishments. The gaming environment gives feedback to the participants very quickly. If everything was done as it should, the team receives points / points / money, if it deviates from the course, it is fined or gets a problem situation that needs to be solved or receives information about the negative reaction of the market. There are many mechanisms. Thus, participants unconsciously adopt the "correct" model. Often, following the results of the game, an action plan is developed aimed at maintaining the created models in daily work activities.
If at the moment there is a problem in the company that it is not clear how to solve, a model is developed in which you can work out several options for action, see how the environment will react, refine the solution and find a way out.
In other words, this method multifaceted and allows you to solve a large number of problems. The main thing is to correctly remove the request and develop exactly the business simulation that will solve the necessary tasks.
Naturally, this training format has both disadvantages and limitations. First of all, these are the requirements for the level of the audience: as a rule, it makes sense to offer simulation games for the level of employees not lower than the level of function managers, when the discussion of company tactics and strategy, as well as the importance of cross-functional interaction, will not be a conversation about very distant and theoretical things.
The second limitation, or rather risk, is the "dumping" of the educational process into a desire to win or lose. In this case, the participants are interested, they are involved, but we do not solve learning problems, because as a result, the participants do not care how they achieved certain results. They are all focused on winning or losing. Ultimately, if you do not set special educational tasks such as conducting “Finance for non-financiers”, when the program is combined with large theoretical blocks and its result is precisely the acquisition of specific knowledge, then participants may simply get lost in the abundance of terms, thereby reducing emotional involvement in Game. Therefore, a possible recommendation is to make the simulation game sum up the “school year”, when there is an opportunity to give the necessary basic knowledge during the year in the usual training or seminar format, or, alternatively, to conduct virtual sessions before or after the game.
It is critical to adapt the level of difficulty of the game in accordance with the level of managerial responsibility and the educational tasks facing the organizers. For example, for an audience for whom it is important to understand how marketing tools, you can connect the Advanced Marketing module, for those who are still not very sure why the company needs an HR service and why quality management systems are being implemented so persistently, you can connect the HR and Quality Management modules.
The process of the game has a very clear structure and its own patterns of development. The first round - participants get used to working interfaces, learn to read information about the market and the actions of competitors. The second is to take measured steps. As a rule, it is in the third round that the teams are already fully aware and understand the business management process.
Then the consequences of earlier decisions begin to negatively affect. This is also due to the delayed effect of many market factors. It is very important to give participants the opportunity to weigh and understand the relationship between their ideas, decisions and results. Sufficient time should be allowed for working with large amounts of data and group discussions. The coach should be especially careful to follow the process in the teams. With a careless reduction in time, the main meaning of a business simulation may disappear - the realization of what information is important for making decisions, which of them led to certain results. This can lead to a pending action effect. The moment chosen to end the game should, on the one hand, be joyful and memorable (each team finally wins and starts generating profits), and on the other hand, it should be understood what decision and how it influenced this or that result. Only in this case, the participants have, as the trainers call it, "insight" - the realization of how simple things can significantly affect the result, the feeling of "how much we still don't know", etc.
Experience of Russian Railways
In July 2010, the Corporate University of JSC Russian Railways began its work, within the framework of which a 1.5-year program "Corporate Leader" was launched, aimed at developing and training more than 1,500 top managers of the management apparatus, branches, subsidiaries and dependent companies (SDCs) and personnel reserve for these positions. To solve the problem of forming a culture of customer orientation in the third semester of the Corporate Leader program, it was decided to use the business simulation format, since it allows:
- simulate real business processes as close as possible to the specifics of the Company's business;
- effectively consolidate and develop the system of knowledge, skills and abilities that was formed as a result of the training sessions in the first two semesters.
The business simulation "Railway transport management: building a culture of customer orientation" is intended for the development of employees of 4 categories:
- heads of departments, departments, branches and subsidiaries and affiliates;
- personnel reserve for these positions;
- deputy heads of departments, departments, branches and subsidiaries and affiliates;
- promising youth leaders.
The purpose of the simulation is to form a comprehensive view of managers about the activities of the company (understanding the relationship of various functions and their impact on final result) and a culture of making consistent management decisions.
The business simulation for the program was developed British company Business Today International in close cooperation with internal experts and faculty of the Corporate University. The process of adaptation to the specifics of the company took about 3 months. It included a test run of the game for employees, followed by their feedback on what needed to be changed and improved.
Disadvantages:
1. The game does not reflect your real business processes and may be divorced from your reality
2. Limited application - only where the specifics of your company's business processes are not critical
3. Conclusions based on the results will need to be “sold”. Since you can meet resistance “But it doesn’t work like that for us”
4. Positive Feedback other companies does not guarantee a similar response in yours.
The duration of the business simulation was 3 days, 8 astronomical hours each. It was conducted by teachers of the Corporate University, certified by the developer company. The business simulation was a board game with a set of game pieces, a playing field and tables to fill in, in which a phased business process of cargo transportation is simulated. The participants are divided into three teams. Each task is to increase financial indicators your company.
It was not uncommon for players to stay after practice ended to plan their future moves better than their opponents. Often the second day of the simulation began with the words of one or more participants: “I woke up at night and thought, thought and understood what to do...”. This shows how seriously the idea of training in the form of a business simulation was taken by the audience.
Throughout the semester, corporate university lecturers accumulated experience in conducting business simulations and made adjustments to the game. Basically, the changes concerned the simplification of visual information, instructions, forms to fill out, tables for calculating the economic results of the game.
Business simulation in the project of the Corporate University of Russian Railways was used as a consolidating stage after the training programs, which made it possible to provide conditions for applying the mastered system of knowledge, skills and abilities in a situation as close as possible to the real one. Key Feature was the use of their own experience and knowledge of the participants. When they are faced with the fact that the existing capabilities are not enough to solve the problem, they begin to independently look for new ways of action, request additional information. This is where the real learning and development takes place. Participants are given the opportunity by trial and error to find the right solution. Only unlike real business, in the simulation, the cost of these errors is not so high.
An important point is the maximum approximation of the simulation to the client’s business, which allows, in the process of conducting a business simulation, to increase the level of involvement of participants when they understand that they are not playing in the next version of Monopoly (under the guise of “simulations”, unfortunately, sometimes they sell such games), but immerse themselves in their own business environment, face their typical business processes and tasks, and understand that the assessment of their actions in the game will be tied to the same indicators as in real activity. In the project of the Corporate University of Russian Railways, this component was given special attention, which ensured maximum emotional involvement and immersion in the gaming environment, which were noted above.
BIRC experience
"We recommend using systems approach, then BS should be accompanied by follow up sessions. For example, control over the implementation of agreements reached through working groups. Our company also participates in such support by moderating these meetings, incl. introducing various contracts of participants, ratings, etc. This gives the result:
- in achieving KPI "s of departments, by increasing staff productivity
- in increasing the motivation and involvement of employees
- in a more relaxed implementation of current projects and in the implementation of changes, etc.
There are many different approaches to creating a BS based on their business processes. One of them is the "Six D Principle":
- Define - define the purpose of the business
- Delineate - describe the desired behavior
- Describe - describe the target audience
- Devise - develop game mechanics and activity cycles during the BS
- Don "t forget - do not forget about interactivity and dynamics, people will better learn the material if they are interested!
- Deploy - use the right tools - game scores, team indicators, ratings, illustrated paraphernalia.
The experience of the Pizza Hut restaurant chain
Several hundred managing directors of Pizza Hut restaurants went through a simulation game that immersed them in the management of a fictitious company and allowed them to experience first hand what it means to be personally responsible and accountable to banks and shareholders when things do not go so well. “Despite university education, most of the managers did not have close communication, for example, with finance. They all know pretty well what happens to them personally in their restaurant,” says Jack Landers, director of training effectiveness at Tricon, the provider that developed the business simulation for Pizza Hut. During the game, managers had to raise capital, manage production and marketing, and calculate salaries. Through all these activities, they not only learned about the basics of managing a company, but also understood how their work affects the overall result.
“It is not enough just to get to know the best-practice companies, it is important to find out why they are the best. Business simulations are more than just a pleasant form of training employees on balance sheets and marketing strategies”, - claims Landers and the participants of the program. It is a powerful tool for demonstrating how the daily actions of each manager affect the results of the company - positively or negatively.
Pizza Hut managers also played the Zodiak game developed by Paradigm Learning. In the game, participants live for three years - three hours of game time - running a fictional company, Zodiak Industries. First, they sign a loan with a bank and attract as many investors as they see fit who are willing to invest $1 million each in their company. After attracting finance to the business, players purchase raw materials, begin to produce and sell goods. At the same time, they must invest in the development of new products, pay taxes, purchase equipment and raw materials. Progress is measured in balance sheets where they should measure key indicators and analyze the results. The goal of the game is to get a company with a profitable balance sheet and fully repaid debts.
“We don't have the ability to test exactly what managers are using from the Zodiac game, but I've never received so many calls from regional managers who are surprised by the new approach to the work of their restaurant managers. They begin to think like business people, not like "pizza makers."
Experience of Advanta Mortgage Corp.
In the 1990s, the Advanta mortgage company was losing $10 million annually. The new CEO considered the simulation game the best way turn the company in the right direction, becoming the main controller of the game creation process. Now it is adjusted every year to reflect changes in the marketing strategy.
The game "Deep pockets" should familiarize each employee with the strategy of the company and the participation in its implementation of various departments. This game, developed by PriSim Business War Games Inc., begins with a series of workshops and discussions that teach players how a mortgage company works. Then they are divided into teams of 3-6 people, each of which must successfully manage the management of the Deep Pockets company (capital - $ 600 thousand.). Teams present their results for each period of time and make a number of decisions for the future period. Also, companies must determine which categories of borrowers they will sue, which regions require close attention, what skills and competencies their staff lacks. Participants enter their decisions into a computer that generates a profit and loss statement, competitor analysis and an industry newspaper.
Participants are a mixture of professionals from all departments of the company - marketing, accounting, HR, etc. The game shows how the company makes money and allows players to interact with people from different functional departments of the company, to see how other people's activities affect the company. For example, an accounting player might understand how spending on sales training can impact a company's ability to reach a larger market. On the other hand, the "non-financial" personnel of the company may have many discoveries about the monetary side of the company's activities.
Despite the fact that the company did not measure ROI, the training manager is sure that the effect of the simulation is very large: “The game initiated discussions about the company's business strategy among the staff. Once, our CEO, talking to company executives, said: “Yes, we have a situation here, like in Deep Pocket. Everyone understood what it was about, remembered their gaming experience and made a decision, but for real business.”
Business simulations have exactly the same set of tools and laws that business games are built on. In some sources, an equal sign is put between these concepts. We tend to separate them, at the level of accents, but not in essence.
Business games (business games)
You can get acquainted with some of our developments and order them in the section
A business game, as a rule, does not reflect any specific industry specifics or a narrow area of activity. This feature is its strength and, at the same time, its limitation. In a business game, general competencies are very well manifested. The environment and system of relationships reproduced in a business game are universal. And that is why the business game, slightly modified, can be used to solve many problems and for various areas of business. Starting from team building and ending with the development of top managers. But these "standard" situations, game worlds, are often not enough for deep analysis or forecasting.
In such a situation, another tool is needed. What is a business simulation?
business simulations
So, a business simulation is a specially designed unique game model that is as close as possible to reality, with an even greater degree of detail of the reflected reality and the existing laws of interaction. The business game is aimed rather at the development of internal resources and skills. Or on their assessment. Business simulation, in our opinion, is carried out to find organizational solutions, experiment with new approaches and analyze the current situation.
Business simulation, in our opinion, is carried out to search for organizational solutions, experiment with new approaches and analyze the current situation.
For example, one of the first business simulations, conducted in the 1930s under the direction of M. Birshtein, was aimed at analyzing the process and consequences of changes in production.
Business simulations also have their limitations. Firstly, a business simulation cannot be carried out without changes for another company. Each business simulation is unique! And some business simulations are not possible to reproduce at all.
Each business simulation is unique!
Secondly, the focus of attention, unlike most business games, is directed not to the human factor, but to the functioning of systems. Thirdly, a business simulation is much more expensive than a business game due to its uniqueness. However, many companies consciously go for these costs, realizing that the effect can be significant.
We develop live action business simulations
The results of many business simulations can be symptomatic of a business or typical behavior of employees and managers. In this case, by simplifying the internal structure, we turn a business simulation into a business game.
Types of business simulations
We divide our business simulations into 2 types:
- live action - in specially organized event the conditions and functioning of the company or its individual units are systematically modeled, analysis is carried out and changes are modeled;
- computer simulators - a static model of the functioning of any system, which has as its goal the development of employees or the assessment of their professional and personal qualities.
We often develop live action business simulations that show the situation in the company or reflect the relationship of key objects and processes. However, in several projects we have applied computer simulations.
Business simulation: examples
In one of the projects (lasted 3 days: the 1st day was the main activities, the other two were analysis and design), we recreated the company's supply and procurement system. During the business simulation, when changes were made to this system, managers and employees could trace all the features of functioning and the consequences of changes. As a result of the project, some functions and processes of the company were changed or improved.
In another case, we simulated the decision-making process and the distribution of information in a company, not to say with a very branched structure. And it turned out that the four instances (divisions) through which external information most often passes are experiencing an enormous load and require an early reorganization.
Benefits of Business Simulation
Business simulation, as a multimedia device, allows you to play the situation again and again (or like a chess game, played each time with new tactics). Keeping track of all the moments associated with changes, and allowing you to predict the consequences.
Thus, a well-designed business simulation is a powerful resource for predicting and developing strategic thinking and decision making.
Business simulation development
Developing business simulations is a painstaking process. And it can take a very long time - from 1 to 3 months. Let us describe a typical algorithm of our actions on such a project.
At the very beginning, we diagnose the company, identifying the key points of existing processes, personalities, ways of interaction, corporate culture, the external environment of the company and many other aspects. And only then we start developing a business simulation based on the data obtained.
We develop business simulations that show the situation in the company or reflect the relationship of key objects and processes
The final stage of preparation is the pilot implementation of the developed simulation on a small group of representatives of the target audience.
The cost of a business simulation
Business simulation development is always individual project. And the category "cost per participant" does not apply here. This explains the high price compared to other formats:
- business simulation "live action" - from 150,000 rubles;
- computer business simulation - from 700,000 thousand rubles.
In the latter case, it is worth explaining - this is the work of several highly qualified specialists and the development of a software product that remains with the customer company forever.
Conducting business games
Running a business simulation is not the end point. After such corporate event we invite the company to continue its work and expand the results. As a rule, we recommend assembling a project team to plan and implement activities aimed at improving relationship systems, processes, supporting changes, etc.
Order a business simulation or a business game
If you understand that in order to increase the efficiency of your employees or business, game mechanisms are required - conducting a business game or gamification - ALWAYS CONTACT US! We will offer the most convenient solution.
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