Beyond Reality: Aspects of Business Simulation Design

and Use that Deliver Learning

Jeremy J. S. B. HallTraining 2010 ConferenceFebruary 3rd - Session 708

Purpose

Explore:The elements and structure of a business simulation

designed for learning. The appropriate level of reality to ensure learning

and engagement.What is required beyond the simulation model for a

simulation that focuses on learning rather than just replicating the real world.

Strategic simulation design issues

Audience

Users of business simulations?Designers of business simulations?Choosers/authorisers of business simulations?

None of the above?

AgendaIntroduction – meSimulations – what they doWhy do you use simulations?What do you want from them?Reality: “the reel problem” and “the cat, the kitten the

hysterical bird and the naked man”Beyond reality: design for learning – issues, focus

and wasteCase Study – the DISTRAIN SIMULATIONSummary

Jeremy HallDesigner of business simulations

– Over the last 40 years have designed 60+User of simulations for training

– Run them around the world 2,000 + times

Believe passionately in their use and how to improve their design.

Simulations: What they doPREPARE REVIEWSIMULATE

P-2P-1 P-3 P-4 P-5

MAKEDECISIONS

ANALYSERESULTS

SIMULATEREPLAN

Why do you use simulations?

• Explore Knowledge and Challenge Understanding• Develop and Practise Skills• Motivate and Engage• Assessment and Evaluation• Enhance Learning

Churchill Fellowship Study (Hall, 1996)

What are simulations best for?

What do you want from them?

Your wish list for a business simulation?– A Model of your business?– Bling?– Effective, efficient & consistent learning?– Transfer

• Replicate your issues?• Use by in-house trainers?

Reality the holy grail?

A commonly held view is that an exact replica of reality is the ultimate goal of business simulation design.

“Designers of business simulations all have the common objective of making their model as realistic as possible” (Decker et al, 1987)

“Management simulations are valid pedagogic tools provided they are complex and realistic” (Miller & Leroux-Demers 1992)

Exploring “reality”Two cases1. The Simulator: The Reel Problem!2. The cat, the kitten, the hysterical bird and

the naked man!

What sort of reality?“The degree to which the game corresponds with the

real life situation” (Norris, 1986) (External Validity) - a precise mathematical model of the business?

Or “the extent to which the training environment prompts the essential underlying psychological processes relevant to key performance in the real-world setting” (Kozlowski and DeShon, 2004). (Psychological Fidelity) - the extent to which the simulation elicits the appropriate Cognitive Processing – develops wisdom.

Beyond Reality DesignStrategic Design Issues • Purpose • Focus

Tactical Design Issues• Simplicity & Stylisation• Beyond the Model - Interactions• Dynamics• Engagement• Design for Use

Learning, Learning, Learning

For business simulations, the learning purpose in today’s turbulent and ever changing world is to learn how to approach and solve business problems rather than know “the best” solution (as in the past?).

So, I see simulations being concerned with developing Business Wisdom rather than Business Knowledge.

Design AspectBase simulation design on what needs to be learned

rather than what is real.

Learning Ladder

Focus

B + C = Learning Need (purpose)A + B = Issues addressed by the simulationIdeally

B >> A (as A is waste and prolongs the simulation)B > C (learners time is used productively)

Design AspectOnly build in decisions, models and results that address learning needs – not

because they are real!

A B C

The Model: Stylising & Simplification

Increasing simplicity

Surreal

“Real” Business

Imaginary

Generic BusinessIncreasing stylisation

Corporate Cartooning (Hall 2008)

Industry Specific

Beyond the Model

Decisions The Model Results

Need to relate to issues, stimulate

thought and not be obvious.

Need to link to decisions, stimulate thought and not be

obvious.

Interactions are as important as the model!

Issues Actions Outcomes

Interactions – Decisions & Results

Decreasing A

mbiguity

less detail(granularity)

Ambiguity affects cognitionGranularity affects workload

Corporate Cartooning (Hall 2008)

DynamicsSimulations are dynamic and this must be allowed for.To ensure deep thought decisions must be

appropriately ambiguous.Cognitive workload must be taken into account.Interactions must be stable and reasonable.

Design AspectsRamp complexity and challenge as the simulation progresses.Test the models’ behaviour.

Computer Simulations: Design for Process (Hall 2008)

Engagement“Days of tedium in front of a computer:

corporate gaming is just like real life” Times 6th Dec. 2008

Design Aspects:Challenge and purposeAppropriate workload (not too much or too little).Evolving experience (cognitive and affective).Appropriate ambiguity (linking cause and effect).Appropriate competition – winning and not losing!

Design for Use

• Use by In-house Trainers - Transfer– “Training by Schneider employees was more about

having local market knowledge than cost.”– “Each simulation was tutored by a Gambro senior

manager because this person would have the necessary in-depth knowledge of the business.”

• Tutor Support System – Ease of Use– A system that provides additional reports to help reveal

and explain the operation of the simulation, to allow the trainers to reactively answer questions and proactively manage the learning process.

DISTRAIN Case Study

• Improve Sales Engineers’ “Business to Business” knowledge

• Replicate a Schneider Distributor• Be run by Schneider staff• Provide Active Learning• Last no more than a day• Existing simulation extensively customized

DISTRAIN - Issues

• Replicate an electrical distributor• Interactions across whole enterprise• Distributor objectives and measures• Finance – profitability, liquidity etc.• Marketing – customer needs and influences• Purchasing – inventory management• Human Resources – skills and availability

DISTRAIN - Simplification

One day duration limited complexity.Markets limited to three sectors.Only 15 separate decisions.Some decisions were low granularity.

DISTRAIN - Stylisation

Decisions designed to link to IssuesDecisions and Issues introduced in stages.Interactions: Decisions and Results.Some decisions company wide.Profit levels like industry but better.Limited types of customers, promotions and

resources. Customer Service dynamic removed.

DISTRAIN – The Outcomes

Feedback from Schneider Electric/Square D after the first year’s use (multiple runs).

1. Recalibration ensured the simulation was real world.2. Continuous introduction of new ideas kept everyone

interested.3. Training by Schneider employees was more about

local market knowledge than cost.4. Each decision needed to be accounted for by another

to maximize impact. Schneider has been trying to teach thinking through the process for years – this class helped them understand.

Beyond Reality - SummaryThree Aspects

1. From Reality to Simplification & Stylisation2. Engagement from Content to Fun3. Learning: Support and Process

Does and Don’ts1. Don’t add stuff because it is real. 2. Do create a ramped, evolving experience.3. Do spend time on designing the interactions.4. Do link complexity to duration.

Jeremy J. S. B. Hall

Phone +44 20 7537 2982E-mail:

jeremyhall@simulations.co.ukWeb Site: www.simulations.co.uk

from knowledge through simulated experience to wisdom

Bonus Slides

The slides beyond this point are to explore issues and are not part of

the main presentation

Lower Order Thinking

Higher Order Thinking

Learning issuesKnowledge AcquisitionComprehensionApplicationSynthesisEvaluation

Exploring knowledge & challenging understanding

• Business Appreciation• Basic Finance• Business Strategy• Etc.

RETURN

Simulation

SIMULATION: Virtual Business Experience (Hall 1996)

To practice & develop skills• Decision-Making• Analysis & Diagnosis• Handling uncertainty & ambiguity• Present, promote & negotiate ideas• Team Working

Learning IssuesShare Experience & Knowledge

RETURNSIMULATION: Virtual Business Experience (Hall 1996)

To motivate & engage• Break from lectures• Get sales people to think profit• Break down inhibitions• Fun!!!

Learning IssuesBusiness people are action orientedCompetition is a two edged sword

RETURNSIMULATION: Virtual Business Experience (Hall 1996)

To Assess & Evaluate• Assessing Learning (the learner’s view)

– Self-Assessment– Informal Assessment– Formal Assessment

• Evaluating Training (the provider’s view)– Prior Learning– Delegate Needs– Remedial Needs– Course NeedsLearning IssuesLife-long learning issuesExplicit assessment can detract from learning

RETURNSIMULATION: Virtual Business Experience (Hall 1996)

Enhance Learning• Link Theory & Practice

– Adult Learners concerned with using learning• Integrate

– Both with past learning and elements of course• Assimilate (memorise)

– Deep Processing– 15 x more effective than lectures

• Revise, Review & ReinforceLearning Issues

Adult Learners are concerned with processActive Learning

RETURNSIMULATION: Virtual Business Experience (Hall 1996)

Systems Dynamics Model

Time

Understanding

Confusion

Cognition

Time

Happiness

Unhappiness

Affection

Time

Too much work

Too little work

Workload

RETURNComputer Simulations: Design for Process (Hall 2008)

KNOWLEDGE

BUSINESS SUCCESS

WISE DECISIONS

WISDOM

EXPERIENCE

Shared Experience

Managed Experience

Simulated Experience

Learning strategy must extend beyond building knowledgeto encompass gaining experience and through it wisdomSimulations provide for this!

RETURNThe Learning Ladder

(www.simulations.co.uk/ladder)

DISTRAIN DecisionsDecisions Granularity IntroducedPercent Markup by Market Quarter 1Inventory Purchases by Market Quarter 1Marketing Company Quarter 1Staff Numbers Company Quarter 2Training Days Company Quarter 3Number of Products Company Quarter 4Receivable Days Company Quarter 4Electronic Linkage Yes/No Quarter 5Demo Equipment Yes/No Quarter 5Demo Room Yes/No Quarter 5Small Project Initiative Yes/No Quarter 5

DISTRAIN: Tutor Support