Most people think of business simulations as a tool where participants either compete against other training participants or against the computer. These aren't the only useful solutions available. Do you know much about business collaboration simulations? These are tools that help leaders learn how to more effectively collaborate as a single entity instead of an individual business silo.
Business Collaboration Simulations are exceptionally useful as part of a team building and cross functional leadership development program. They are also exceptionally challenging to create because these solutions are multiple simulation combined into a single tool for corporate development. This type of business simulation breaks the group into specific teams where they all have to work together in order to achieve a common goal. Participants must learn to work together, work on the business, and effectively communicate in order to succeed. Read More...
In general, most CEOs want training to influence one of three outcomes: Increase revenue, decrease costs, or both. Most training managers think more along the lines of knowledge development. They want people to learn a skill in order to do their jobs better. But the CEO and the executive team want to know how the training will influence the three factors. Here lies a slight disconnect. Executives want training that teaches the business of the enterprise. This isn’t to suggest that knowledge development isn’t important. Having a direct connection between how knowledge impacts revenue growth, expense reduction, or both is critically important to the corporate strategy.
Demonstrating these impacts can be challenging. Training managers struggle with how to help training participants understand the connection between the training content and its impact on revenue and/or expenses. In many cases, training managers have to bridge the connection gap with general examples and a leap of knowledge faith. This is usually where leadership training often breaks down and relevancy is reduced. When training managers are able to make the training part of the corporate strategy, the training becomes one of the central components of corporate strategic execution.
I’ll get this opinion out right from the start: I don’t think Game Theory is very applicable to real world strategic planning and/or strategy testing. Like most knowledge labeling from Higher Education, this is interesting inside of a lab. Basic game theory is fun, and interesting to think about, but isn’t very usable for corporate planning. Once you get into more advanced game theory such as Nash Equiquilibrium, this becomes exceptionally useful when economics tries to predict behavior. But this is where I ‘go off the rails’ a little. I personally get frustrated with predicting human behavior. Don’t get me started on AI. Let me explain.
There are two elephants in the room with game theory. Game Theory assumes the following: 1) Human behavior is reasonable and predictable resulting in ‘rational and predictable behavior’ and 2) the assumption that all parties have equal information that has equal interpretation. I’m sorry, but c’mon! Since when are humans predictable and rational and since when does anyone not bring their experiences and bias’ into any situation.
In 1979, researchers Kahneman and Tversky wrote Prospect Theory: An Analysis of Decision Under Risk. This looked at the impact of physiology on decision making. It's an amazingly interesting piece to read (a little thick though). Daniel Kahneman won a Nobel Memorial Prize in Economics for his work developing Prospect Theory. Incredibly interesting stuff that will pretty much make you raise your arms up and say, “Oh man, then who knows what to do.” Absolutely right… we can only take an experienced mix of theory, experience, and tactics and do your best with what you think should be done (you can also gamify your strategy to see what happens).
Back to game theory: Again, I’m not a huge fan. It’s interesting and fun to think about. A little workout for the brain, but I see only a small spot for it in strategic development and implementation. As someone who has created and implemented strategy, I’ve yet to see anyone or any company be rational and predictable. - WPH