Business simulation: goals, types and essence of technology. Business simulations and business games

Colleagues, I want to talk to you about the technology of personnel assessment and development, which, it seems to me, has not received worthy recognition and widespread use in HR practice. I'm talking about business simulations.

I myself am developing business simulations both for the purposes of personnel assessment (in the structure of assessment centers) and for employee development. However, speaking with many colleagues, I got the impression that this technology is viewed either with skepticism or with some misunderstanding.

In my brief review, I would like to highlight the key features of business simulations, the purposes of their use in business and some development features. I will be glad to hear the opinions of colleagues, questions and, perhaps, my own experience of using business simulations.

Business simulation (simulation game, business simulation) is a modern technology for personnel assessment and development, based on modeling real business processes that are as close as possible to the conditions of a particular Company, and allows participants to gain experience in solving complex management problems under artificial conditions.

Purposes of application in business:

Exist two main goals use of business simulations in Companies:

Personel assessment. Using a business simulation, you can get an accurate assessment of the level of development of an employee’s managerial skills, his ability to analyze a situation, prioritize tasks, build effective interaction with other participants in business processes, and make informed, cost-effective decisions.

Staff development. Business simulation is unique simulator to develop management skills 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 an educational format to practice solving complex management problems, organizing effective cross-functional interaction and learning to make informed management decisions.

Types of business simulations

All simulation games can be divided into two large groups:

Standard business simulations (model typical business processes)

Adapted business simulations (developed taking into account the characteristics of the customer company and most accurately reflecting the reality of a particular business, its key tasks, problems and opportunities)

Standard business simulations are comparatively cheaper and more accessible to the Company than customized ones, which require O greater time and material costs. At the same time, adapted simulations have a deeper training and development effect due to their specificity and fine tuning to the customer’s business.

There are several types of business simulations:

computer simulations it is assumed that participants work with the company in the format of a computer program and manage it while sitting at a computer monitor;

V desktop simulations The company and all business processes are displayed in the form of a map and chips on the participants’ table;

a business simulation can also be represented as miniature enterprises , with simulation of basic technological and business processes.

Recently, the demand for the use of business simulations has increased, modelingcrisis situation in company. This is an excellent opportunity in a safe environment to develop the skills of the Company’s managers in the field of crisis management and practice making effective decisions in high-risk environments.

The essence of technology

The business simulation provides each participant with an excellent opportunity to try themselves in managerial role and evaluate your effectiveness in making complex strategic decisions. The main goal of the simulation, as a rule, is to effectively organize the Company’s activities, withstand competition, ensure the successful development of its business, profit growth and, ultimately, increase the value of the Company.

The simulation requires participants to serious concentration, since part of the work is devoted to analyzing the market, its trends, identifying the Company’s internal and external problems, planning strategy and tactics for solutions, etc. To achieve success, the participant needs to understand the internal features of the Company, highlight its strengths, opportunities and limitations. In addition, taking management decisions, it is necessary to take into account the interests and needs of other participants, who represent the heads of the Company’s structural divisions, its clients, and sometimes competitors.

Being team form of work, business simulation provides a high level of emotional involvement of participants who are completely immersed in the gaming environment and are focused on achieving high results. This allows everyone to demonstrate their leadership and communication skills and organizational abilities.

Key feature of business simulations is to use a unique learning algorithm. There's no theory here. First, participants are immersed in a problem situation and try to solve it using their existing knowledge, skills and resources. When they are faced with the fact that existing capabilities are not enough to solve a problem, they begin to independently look for new ways of acting and request additional information. At this moment it happens true learning and development, a person must feel the value of new knowledge through his own trial and error experience. But unlike real business, in a simulation the cost of these mistakes is not so high.

Business simulation does not end with someone's victory or defeat. It always ends with a certain result and experience gained by the participants. It is the team result and experience of each that is analyzed by the presenter upon completion 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 will receive.

Features of developing and conducting 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 identify the key business processes that will be modeled in the game. This requires close collaboration between the developer and representatives from the customer, people who are expert leaders in the business processes being described. It is also necessary to select a pilot group from among the Company’s employees who will participate in testing the new development, identifying areas that require improvement. On average, the process of developing an original business simulation takes about 6 months.

Using ready-made standard solutions allow you to save time and material costs. The disadvantages of typical business simulations can be mitigated by additional adaptation of the game structure to the customer’s business reality. 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 the game and real business processes. Minimize this risk is possible due to the professionalism of the presenter when summing up the results of the game, when the conclusions and solutions obtained by the participants will be analyzed in relation to the current reality of the Company and its features. This can help participants understand how to use the experience, knowledge and skills gained during the game to solve practical problems in their workplace.

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With respect and best wishes, (c) Igor Bespalov.

Ready to discuss. :) Have you used business simulations in your practice? If so, what problems were solved and how successfully?

Have you ever developed simulations? If so, what topic and what was the most difficult thing to develop?

Business simulation has an educational goal: the participant obtains relevant skills and competencies. This qualitatively distinguishes it from other software products, in particular economic games, which for the most part belong to the entertainment sector.

It should be noted that the complexity and systematic approaches that are present in the concept of business simulation allow the use of gameplay elements in the educational process, which, when properly balanced with educational tasks, increase the effectiveness of educational results. This is what makes business simulation a 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 practical activities.

Business simulation is widely used as a teaching method in Western educational systems, particularly in universities and business schools, not only for teaching students, but also for training managers.

Story

The first form of use of any simulations for educational purposes was gameplay. From history we know that in China about 3,000 BC. e. A special simulation game was used for military training. This simulator was like chess.

• growth in the number of students;
• an increase in the number of new training courses;
• increasing the popularity of various teaching methods, including non-classical ones;
• availability of new technologies.

Business simulations in the Ukrainian educational system

In the early 90s, the countries of the former Soviet Union began to study and put into practice Western-style models of social life, including educational models. The first use of business simulations as a teaching method in Ukraine was recorded in 1995, when, with the assistance and under the supervision of the Ukrainian business school International Institute of Management (IIM), the first educational business simulations were introduced in the city of Kiev.

Sources

Wikimedia Foundation. 2010.

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Simulations are one of the ways to model real business processes. For example, you can test the idea of ​​opening regional warehouses for a retail chain. To do this, tables with employees are placed in a large hall, which imitate the work of regional stores, warehouses and even suppliers. Based on data from past periods on deliveries, something simulating goods is passed from table to table, simplified applications, invoices and even money are exchanged. In such a simulation, you can simulate a month of operation of a real logistics chain with different numbers and regional locations of warehouses in an hour. As a result, you will gain an understanding of the most optimal configuration, typical operational problems, business process requirements, and much more. Sometimes computers and virtual calculations are used for simulation. It happens that everything is done using special software managed by a business analyst.

Business simulations are often used to develop solutions for company development. Participants in the strategic session are divided into business units, suppliers, clients, and regulatory authorities. The interests and basic rules of behavior of each participant are formulated, and then they simulate the implementation of a project, the introduction of a new service, or simply several years of “living together.” As a result, future scenarios emerge, a better understanding of the reasons for the decisions of key stakeholders, and hidden driving forces of events.

In addition to analyzing business systems for risky or very important decisions, simulations are actively used to train new employees

For example, at Opel factories there are special workshops where beginners assemble simplified wooden models of cars, studying not only the assembly process itself, but also the rules for receiving shift assignments, reports on work performed, and how to deal with emergency situations. Everything that will be useful when they are allowed into the real workshop. Simulations are used in initial training and advanced training of pilots, drivers, and operators of complex and dangerous equipment. Some companies use them to train office workers more related to “business tasks.” After all, working with money, live clients and counterparties is no less responsible for a company than, for example, piloting an airplane.

I think that the similarity of what is described with children’s games, an imitation of the life of adults, is already noticeable. Actually, this differs from children's games only in the seriousness of the subject - “business topics”. And, probably, somewhere here lies the key difference between a business simulation and a game. If there is no fun and excitement in the game, then it turns into a very serious simulation. A If you add excitement and fun to the simulation, and simplify it a little, then it’s already a game. As a rule, games are much simpler than simulations in terms of rules and organization. Well, the name “game” is often used so as not to scare potential participants with the terrible word “simulation”.

What are the limitations of business simulation?

Simulation will be useful if you understand the mechanics and patterns of the real process, select and accurately calculate the means for simulating them. But a business process is far from simple. For this reason, simulations most often follow established, well-known scenarios. And the set of such scenarios is not very large. The number of skilled simulation organizers is quite limited: at the Russian School of Management we spent more than one month to find several truly worthwhile business game specialists on the Russian market. If a newbie takes on the implementation of a game/simulation, it often fails. What seemed simple in the book or from the outside suddenly doesn’t work and the participants behave “incorrectly.” The participants finish the script and run away with relief.

Simulation requires time, people, space and equipment. It is not always possible to borrow all this from a real business, even for a short period of time. But you not only need to drive her away, but also prepare her. A simulation requires organizers, participants, and observers to gain its full benefit. Based on the results of the simulation, it may be necessary to analyze the results and prepare a report.

When I decided to develop a simulation based on the fairly well-known “beer game”, I thought that everything would be quite simple. It has been played for more than half a century. But it took me four groups of “experimental students” and six months of testing to figure it out and work it out. Then I learned that this game is usually played 2 orders of magnitude simpler, and that is exactly how it was intended. And some “cunning” people replace the live decisions of the participants with tables of random numbers. And the simulation turns into an instructive story from the lecturer. But now I have in my arsenal a simulation that is extremely complex in terms of internal mechanics and variety of business aspects. And I haven't seen anything like it yet. A year ago, I decided to repeat the “feat” and make a new simulation, but I could not find the time and find a sufficient number of “guinea pigs” to work out the mechanics. So there lies a half-baked simulation “on the table”.

An important feature of many types of simulations is that, like real life, they are subject to probabilistic laws. Those. the simulation in your runs can realize an extremely unlikely event. And it is not always possible to understand that in real life this is unlikely to happen. In one simulation, I use a deck of cards to simulate changes in a worker's productivity. And it happened that only aces were drawn from the deck in a row. Of course, the participants laugh and take into account the unusualness of such a phenomenon. Even in such a situation, instructive conclusions can be drawn, but the risk of getting an erroneous guideline remains.

But probably the biggest limitation is the reluctance of adults to play even simple simulation games. “Are we in the theater?” “We have work to do, and here are these toys.” Just learning, even boring, is normal and familiar, but a business game is already “some kind of nonsense.” A large multi-day meeting with empty to empty is normal, but simulating the stages of a project is already stupid. As usual, a lot depends on habits and stereotypes.

Advantages and disadvantages of business simulation as a personnel development tool

In my classes, I like to challenge participants with a question: How long has it been since you had training on a skill that is key to your job? Not using it in practice, not getting an explanation from a colleague - how to do it, not reading a book on this topic, not participating in a “training”, but just training. Multiple repetitions of a basic action for better understanding, mastery, and development of the most effective method of execution. Most often, no one can remember professional training. Well, maybe the sales staff.

Svetlana Shishkina,
CEO and founder of the company,
Outstaff Capital

The strength of this game model: being as close as possible to reality, it makes it possible to work out processes in detail, propose new models and solutions, work in a team and, at the same time, demonstrate your individuality to the maximum, make mistakes many times and correct mistakes without damage or risk to yourself. business and its participants.
Speaking of limitations, it is worth noting that it is impossible to use the same business simulation in different companies. This is indeed a very powerful unique product that requires individual development for the business of a specific company.

Chebykina Olga,
Head of Personnel Assessment and Development Department, IBC Human Resources

Business simulations have their limitations.
First of all, every business simulation is unique! It cannot be carried out without changes for another company. That is, there is no standard standard product; it is developed for a specific situation, company, client.
Secondly, the focus, unlike most business games, is not on the human factor, but on the functioning of systems.

Thirdly, a business simulation is much more expensive than a business game due to its uniqueness. However, many companies make these expenses, realizing that the effect can be significant.

A business simulation, as a multimedia device, allows you to play a situation over and over again (or like a chess game, played each time with new tactics). Tracking all aspects related to changes and allowing you to predict the consequences.
Thus, a well-designed business simulation is a powerful resource for forecasting and developing strategic thinking and decision-making.
The shortcomings of a business simulation are eloquently demonstrated by its “limitations.”

Guzel Garayeva, HR Director, OBI Russia

We see only the advantages of using a strategy game as a tool for personnel development - we have not encountered any disadvantages, if any. The main advantage is that we received a comprehensive training tool that completely simulates the business activities of OBI hypermarkets. The game not only develops practical skills in managing sales, costs, service and personnel, but also systems thinking. During the game, employees learn to analyze the situation, set priorities and calculate possible risks in advance.

For 10 years, we were actively involved in training through classical training, but over time, interest in them began to wane. This is how the idea arose to introduce an innovative teaching tool. We have created for our target audience - young people aged 25 to 40 years old, who grew up on Warcraft, Age of empires, etc. - a new effective and attractive format: a computer simulation game. In addition to high efficiency, it added flexibility to the process (everyone chooses a convenient time and place for the game).

Vadim Efremov,
CEO, Blended Learning Strategist,
Skillary

Of course, simulation is great and effective, because a person learns in conditions as close to reality as possible. But there are also pitfalls:
1. Recreating reality is very expensive and not always necessary. If we are talking about flying a combat aircraft and threatening human life, not to mention tens of millions of dollars, then simulation is absolutely justified. If we are talking about training call center employees, then it is much simpler and no less effective to give them a script and train them on “live” clients
2. Simulation is a complex algorithm that reproduces the laws by which the system lives. If an error has crept into the algorithm, then users will learn something completely different from what they need.
3. A game based on a simulation must be very well executed in terms of pedagogical design - the simulation itself does not teach anything. It is important to set up a “user path”, following which the user will be able to draw the conclusions and train the skills that are needed
In general, simulations are the future. With the cost of software development becoming cheaper and the development of artificial intelligence algorithms, business simulations will become the predominant learning environment in the next 10 years - this is my opinion.

Over the past 15 years, a huge number of employees have undergone a variety of training and have developed the impression that they “know it all.” Unfortunately, this knowledge does not always transfer into real working life. Hence the popularity of business simulation - immersion in virtual reality with the laws of real business. It can include a business game, cases 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, which 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 undergone training on the required topic - it’s just that theoretical blocks are included in the business simulation for them. And in this case, the simulation becomes problematizing, educational, reinforcing, and motivating for them.

During the business simulation, participants independently draw conclusions and gain their own experience, which they then implement into working reality. A standard business simulation is a typical simulation training program. This model is actively used in personnel training by many companies. A business simulation tailored to the client, i.e. made to order, is created taking into account the individual characteristics of the company and the specifics of the business area. When we design what participants already know and use it, we create an environment in which intrinsic motivation to use these tools increases exponentially. Also, employees practice algorithms in various practical cases and it is much easier and easier for them to transfer this into daily activities.

There are two main types of business simulations - desktop and those that involve the use of IT technologies in modeling.

Each has its own advantages and disadvantages.

Like any automation element of labor, business simulation reduces the role of humans. The game “engine” is interesting in itself, and the program can provide such a level of analysis and recommendations for the game that in order to fail the training you need to make additional efforts. In terms of the quality of the result for participants, software-based business simulations are safer for trainers, who have a lot of opportunities to look like experts due to the opportunities that IT simulation provides specifically for presenters. On the other hand, it does not follow from all of the above that business simulations based on IT modeling can be carried out by anyone.

The main tasks that business simulation solves:
Implementation of new business processes with minimal resistance;
Finding errors and ways to optimize current business processes;
Formation of a strategic vision of the company and business;
Adaptation to changes in the company;
Finding ways to solve difficult situations in the company;
Development of skills in any necessary competencies;
Improving the quality of cross-functional interaction;
Implementation of corporate culture and values;
Assessing employees in situations as close to reality as possible;
Team building in a business environment;
Changing your attitude towards your work. “Restarting” motivation for your work activities.

In the United States, where business modeling is most popular, teachers with a Ph.D. degree are allowed to teach seminars based on Capstone business simulation. (academic degree corresponds to our Doctor of Science). For the rest, information content, clarity, the ability to compare a large number of indicators, and, most importantly, the speed of processing the results of game periods allows us to maintain a high level of participant involvement throughout the program.

In addition to the technical side of the issue and the aspect of fun for players, it is possible to distinguish two formats for the learning process.

The first is the classic educational process that is used in Western universities, when during the semester each lesson corresponds to one game period (1 fiscal year). Between meetings, students receive homework, analyze cases, etc. In this format, participants have time to develop a deep understanding of the game and better mastery of knowledge.

The second is corporate training, where time constraints in practice are of key importance, since separating employees from the work process is rarely easy. In this case, programs of 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 the dynamism of the format, the ability to integrate knowledge acquired in other subjects, and build a holistic picture of business interaction inside and outside a virtual corporation), then the experience of business games in corporate universities not so clear.

On the positive side, it is worth noting the variety of tasks that can be solved using simulation within the training center. Starting from training in specific knowledge in the field of understanding business: working with financial information, pricing, utilization of production capacity, and ending with choosing a company strategy and developing influence skills in a team.

An undoubted important advantage of a business game is the emotional experience of the result - participants rejoice and rejoice when they take first place in the market, grieve when they lose profits, suffer from poorly predicted sales and aggressive actions of competitors. The sincere experience of a wide variety of and often unexpected feelings creates a high level of both involvement and learning. This level is difficult 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.

Despite all the intensity of emotions and tension of nerves, according to the feedback from the participants themselves, what makes them most happy is the safety of the decisions made. Some even wrote that they were able to “behave at will and try a number of absolutely absurd actions.” This aspect is an advantage of a business simulation, since participants can try the most incredible company management scenario, test their hypotheses in action, and the worst thing that can happen to them is realizing the error of their decisions.

The intensity of the experience makes a 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 brings not only a good mood, but also practical benefits. HR departments often have to deal with similar tasks when organizing events for their management. There is a special term in use - “trainment” - 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 quickly prevails 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 management of a business especially contributes to managers’ understanding of the role of a related function, the role of other departments in achieving the company’s results.

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 “living” 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 one’s department often leads to difficulties in cross-functional interaction, and often to conflicts.

The situation can become more complicated if such a function leader is promoted up the career ladder to a higher management level, where an understanding of the business as a whole is required. The simulation is an excellent opportunity to demonstrate how each function is important for the organization and ignoring the interests of colleagues can lead to dire consequences, to form among managers a common understanding of the business, which is necessary for managers, from middle management level to the highest level of management. 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 tasks (interesting for the participants, useful for the company and strengthens the authority of HR) that arise every time before the training service and personnel development when choosing a program.

Benefits of business incentives:
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, observing their consequences and drawing conclusions
During the game, participants independently draw conclusions and gain their own experience, which they then implement into working reality much more easily and quickly. Overcoming a critical attitude.
Employees of different levels can participate in the simulation, which will enrich the game and make it more useful;
The opportunity to gain experience making decisions from different positions, to see the process from different points of view;
The ability to systematically analyze a situation, develop the ability to see and take into account not just one cause-and-effect relationship, but a system of interrelated factors influencing the result;
A high degree of freedom in the development of the situation requires participants to use knowledge and skills comprehensively, the ability to be flexible in choosing tools and approaches to solutions;
Constant monitoring of activities and the “Decision - Result - Analysis - New Solution” game scheme allows you to demonstrate the effect and result of possible solutions in the shortest possible time;
Teamwork and competitiveness ensure high emotional involvement of all participants and ensure the exchange of best practices.

Do you need to evaluate an employee on certain competencies? Due to deep immersion, participants produce exactly the model of behavior that they adhere to in real life. It’s just that when developing, you need to take into account that evaluation is the key goal. Business simulation allows you to establish the desired model of behavior in certain situations. This effect is achieved through an almost instantaneous system of rewards and punishments. The gaming environment provides feedback to participants very quickly. If everything was done as needed, the team receives points/points/money; if it deviates from the course, it is fined or receives a problematic situation that needs to be resolved or receives information about a negative market reaction. There are many mechanisms. Thus, participants unconsciously accept the “correct” model. Often, based on 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 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 is 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 problems.

Naturally, this training format has both disadvantages and limitations. First of all, these are requirements for the level of the audience: as a rule, it makes sense to offer simulation games for employees at least at the level of function managers, when discussing issues of tactics and strategy of the company, 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 the desire to win or lose. In this case, the participants are interested, they are involved, but we do not solve educational problems, since the participants as a result 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 a simulation game sum up the “school year”, when it is possible to provide the necessary basic knowledge during the year in the usual training or seminar format, or, as an option, 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 work, 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 so persistently implemented, you can connect HR and Quality Management modules.

The game process has a very clear structure and its own patterns of development. 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 teams are fully aware and understand the business management process.

Then the consequences of previously made decisions begin to have a negative impact. This is also due to the delayed effect of many market factors. It is important to give participants the opportunity to weigh in and understand the relationships between their ideas, decisions and results. Sufficient time should be allowed for large amounts of data and group discussion. The coach must especially carefully monitor the process in the teams. If you reduce the time carelessly, the main point of a business simulation may disappear - the awareness of what information is important for making decisions, which of them led to certain results. This can lead to the effect of unfinished action. The moment chosen to end the game should, on the one hand, be joyful and memorable (each team finally gets into the black and begins to generate profits), and on the other hand, comes an understanding of what decision and how it influenced this or that result. Only in this case do the participants have what the trainers call “insight” - an awareness of how simple things can significantly influence the result, a feeling of “how much we still don’t know,” etc.

Experience of JSC 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 staff, branches, subsidiaries and dependent companies (SDCs) and personnel reserve for these positions. To solve the problem of creating a customer-oriented culture 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 practice the system of knowledge, skills and abilities that were formed as a result of the training sessions in the first two semesters.

The business simulation “Railway Transport Management: Creating a Customer-Oriented Culture” is designed for the development of employees of 4 categories:

1. heads of departments, offices, branches and subsidiaries and affiliates;
2. personnel reserve for these positions;
3. deputy heads of departments, directorates, branches and subsidiaries and affiliates;
4. promising youth leaders.

The purpose of the simulation is to form a comprehensive understanding of managers about the company’s activities (understanding the relationship between various functions and their impact on the final result) and a culture of making coordinated management decisions.

The business simulation for the program was developed by the British company Business Today International in close collaboration with internal experts and teachers 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.

Flaws:
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 from other companies does not guarantee a similar reaction from 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, which simulated the step-by-step business process of cargo transportation. Participants are divided into three teams. The goal of each is to increase the financial performance of their company.

It was not uncommon for players to stay after classes 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: “but I woke up at night and thought, thought and understood what needs to be done...”. This shows how seriously the idea of ​​training in the form of a business simulation was taken by the students.

Throughout the semester, corporate university teachers 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 JSC Russian Railways was used as a consolidating stage after the training programs, which made it possible to provide conditions for the application of the mastered system of knowledge, skills and abilities in a situation as close as possible to the real one. A key feature was the use of the participants’ own experience and knowledge. When they are faced with the fact that existing capabilities are not enough to solve a problem, they begin to independently look for new ways of acting and request additional information. This is where true learning and development occurs. Participants are given the opportunity to find the right solution through trial and error. But unlike real business, in a simulation the cost of these mistakes is not so high.

An important point is to bring the simulation as close as possible 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 just another version of Monopoly (under the guise of “simulations”, unfortunately, sometimes they sell such games), but are immersed in their own business environment, faced with 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 activities. In the project of the Corporate University of JSC Russian Railways, special attention was paid to this component, which ensured maximum emotional involvement and immersion in the gaming environment, which were noted above.

BIRC experience

“We recommend using a systematic 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, moderating these meetings, incl. introducing various participant contracts, ratings, etc. This gives the result:

• in achieving departmental KPIs by increasing staff productivity
• in increasing employee motivation and engagement
• in a more relaxed implementation of current projects and when introducing changes, etc.

There are many different approaches to creating a BS based on your business processes. One of them is the “Six D Principle”:

1. Define - determine the purpose of the business
2. Delineate – describe desired behavior
3. Describe – describe your target audience
4. Devise – develop game mechanics and activity cycles during the BS
5. Don't forget - don't forget about interactivity and dynamics, people will learn the material better if they find it interesting!
6. Deploy – use suitable tools – game points, team indicators, ratings, illustrated paraphernalia.”

Pizza Hut restaurant chain experience

Several hundred Pizza Hut restaurant managing directors were put through a simulation game that immersed them in running 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 don't go well. “Despite their university education, most managers did not have close contact, for example, with finance. All they know is what happens to them personally in their restaurant,” says Jack Landers, director of training effectiveness at Tricon, a provider of business simulations for Pizza Hut. During the game, managers had to increase capital, manage production and marketing, and calculate salaries. Through all these activities, they not only learned about the basics of company management, but also understood how their work affects the overall result.

“It’s not enough to just get to know a company’s best practices; it’s important to find out why they are the best. Business simulations are more than just a fun way to teach employees about balance sheets and marketing strategies,” says Landers and program participants. This is a powerful tool for demonstrating how the daily actions of each manager affect the company's results - positively or negatively.

Pizza Hut managers also played the Zodiac game, developed by Paradigm Learning. In the game, participants live for three years - three hours of game time - managing the fictional company Zodiak Industries. First, they sign a loan with the bank and attract investors (as many as they see fit) who will be willing to invest $1 million in their company. After attracting finance to the business, players purchase raw materials and begin producing and selling goods. At the same time, they must invest in the development of new products, pay taxes, and purchase equipment and raw materials. Progress is measured in balance sheets, where they must measure key indicators and analyze results. The goal of the game is to get a company with a profitable balance sheet and fully repaid debts.

“We don't have a way to test exactly what managers are using in the Zodiac game, but I've never received so many calls from regional managers who are surprised by their restaurant managers' new approach to their work. They begin to think like business people, and not like “pizza makers.”

Advanta Mortgage Corp. Experience

In the 1990s, mortgage company Advanta was losing $10 million annually. The new CEO saw a simulation game as the best way to move the company in the right direction, becoming the main controller of the game creation process. It is now adjusted every year to reflect changes in marketing strategy.

The game “Deep Pockets” should familiarize each employee with the company’s strategy and the participation of various departments in its implementation. Developed by PriSim Business War Games Inc., this game begins with a series of seminars 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 company “Deep Pockets” (capital - $600 thousand). Teams present their results for each period of time and make a number of decisions for the future period. Companies must also determine which categories of borrowers they will sue, which regions require close attention, and what skills and competencies their staff lacks. Participants enter their decisions into a computer, which generates a profit and loss statement, competitor analysis and an industry newspaper.

Participants are a mix of professionals from all departments of the company - marketing, accounting, HR, etc. The game shows how a company makes money and allows players to interact with people from different functional areas of the company and see how other people's activities affect the company. For example, an accounting player can understand how money spent on training a sales team can impact the company's ability to reach more of the market. On the other hand, the company's "non-financial" personnel may have many insights about the monetary side of the company's activities.

Despite the fact that the company did not measure ROI, the training manager is confident that the effect of the simulation is very great: “The game initiated discussions about the company’s business strategy among staff. Once, our CEO, communicating with the company’s leaders, 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.”