Training Simulations
Experiental simulations pitting competing teams against each other, offer powerful learning experiences. By David Newman.
Imagine the latest weird twist on a TV reality show, where you get to lock up our favourite bank managers in a remote location, make them beg for money, and make some of them bankrupt. This is more or less what has been happening in the UK, at Barclays Bank plc, as new relationship managers, in the bank’s new Medium Business arm immerse themselves in a business simulation as part of their induction training programme.
Over the past couple of years, new relationship managers have been taking part in a two-day business simulation called Decision BaseTM run by X Learning Limited, as part of a longer induction training programme, which includes various aspects of credit risk.
In competing teams, the managers get the chance to run their own manufacturing business, working together and making de-cisions around what products to produce, which markets to enter, how to configure their production lines, how to finance the business and so on.
At first, the teams start off on an equal footing, and assume responsibility for their own business,
appointing themselves into the key roles of marketing, production, finance and corporate intelligence. The early rounds of the simulation see the teams do battle with scarce resources (and often at first battling with their own understanding of the complexities of running a business).
After a while – and usually after a number of cash crises, bank meetings and assorted operating difficulties, the teams consolidate and compete with the other teams for market position, bringing many models of business strategy to life.
But ultimately, it is the shareholders that call the tune, and an ever increasing set of perform-ance targets introduced in the later stages of the simulation encourage the teams to drive out operating performance and improve the bottom-line shareholder value.
Along the way, the teams encounter a whole host of issues facing businesses today – and the immersing nature of the simulation means that most participants live and breathe the simulation throughout its duration – sometimes virtually 24 hours a day! Participants frequently return in the morning complaining of lack of sleep, getting up at 4.00 am to do a cash flow forecast, and so on. On one occasion, two teams decided that a merger was the best way to compete in their markets, and worked (under their own volition we hasten to add) until 2.00 am to put the new structure in place! Only on a handful of occasions have the facilitators had to step in to break up loud disagreements – usually between members of the same team!
Participants learn – through experience, not traditional teaching – about such issues as strategy, co-ordination, communication, finan-cial reporting, financial analysis, construction of business plans, cash crises, shareholder value – and lots more beside. The simulation allows participants to experience the issues, and work them out for themselves, rather than being given the inputs…and then probably forgetting them.
So the learning comes from experiencing, not teaching, and the majority of participants report that the learning achieved in the two days of the simulation would take weeks, if not months, through traditional learning techniques. And, what is more, they confirm that their learning – because of the intense experience – lasts longer. Several years on from playing this, and other similar simulations,
people can still remember who was in their team, what happened, what they disagreed over, and so on. You can’t say that about many training courses.
Ultimately, what the relationship managers gain from the simulation is empathy. They understand the issues facing their business customers, the tensions, the conflicts between idealistic strategies and the real demands of day to day cash crises – and often the fact that the bank isn’t always number one on their customers’ agenda – unless money is needed.
So after the event, the quality of meetings and interviews improves – the managers start to ask questions about the business, the strategy, the implications of that strategy, and the true time and cost involved in diversifying, putting in new production lines, expanding, and so on. And any piece of research into “what business customers want from their bank” will always throw out “a bank that understands my business” at the top of the list.
And the interesting thing is that this particu-lar simulation is designed to help businesses in the manufacturing sector – but the develop-ment of finance-related material has made it work extremely well by “turning the tables” on the bank managers!
Decision BaseTM is one of a range of business simulations delivered by X Learning Limited. This simulation is focused on a manufacturing environment (although is an excellent table-turner for bankers!), whilst other simulations such as TangoTM focus on organisations where the management of the intangible assets of a business (people, image, brand) are as important as managing the physical assets. Other simulations include Liven, which is a retail and marketing simulation ideal for regional and local managers running stores and franchises in the retail sector.
The simulations themselves are great fun, totally immersing, and offer deep and lasting learning. The real value is in the setting of the simulation within the organisation – what people can do afterwards to make a difference to their own teams, departments and divisions. Though the simulations are fun, they are also deadly serious. Simulations are relevant, and they can ensure that even potentially dull and dry subjects are lively, fun, and interesting?
This is ensured through:
• Using Accelerated Learning techniques
• Using Accelerated Learning techniques
• Using live company data where possible
• Providing realistic case studies
• Drawing learning out from day to day events within the business
• Allowing participants to directly reflect on the organisation and the job they do
• Encouraging group work
• Catering for different learning styles, personality preferences and multiple intelligences
• Offering blended solutions so that time spent as a group focuses on the really important issues
• Advocating the use of on-going collaboration
If you’d like to know more about Decision Base, or other business simulations, then call David Newman of X Learning (+44 7984 817328) for an informal chat about your needs and how using business simulations could seriously improve your bottom line performance – through your people.
