How To Build a Business Simulation

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How does one build a business simulation? This is a very common question. Its also a very tough one to answer. The main reason it is so hard to explain how to build a business simulation or serious game is because it is so totally dependent on what one is trying to simulation. To make matters even more complicated is the fact that each corporate strategy is so drastically different. In a sense, its almost like asking, "How do I make a tree?" There are so many different types with so many dependents that its almost impossible to answer. But here are some tips to getting started:

Tips on How To Build a Business Simulation or Serious Game

1. Start at the finish line. Clearly define your top three goals or desired takeaways from the simulation. This is where you start. Write them down.
2. Write down the top 5 influencers that effect the outcomes you defined in step 1.
3. Write down 10 decisions that effect the influencers. In the end, you'll end up with 50 decisions (5 influencers x 10 decisions).
4. Create a decision outcomes map. Each decision is going to have different outcomes. For example, if someone chooses to cross a bridge, they will be on the other side. But if someone chooses not to, they will remain where they are. In a sense, the decision of, "To cross a bridge or not" will end up in two potential outcomes. Map these out. This is the outcome 'engine' of a business simulation or serious game.
5. Build a mechanism to put this in place. This is where it gets complicated. For simplicity, lets keep it paper based. Create a system of decisions that turn into outcomes. This is really the core of a business simulation and/or serious game. Its really the core of any simulation. Decisions effect influencers which effect outcomes. This is what a business simulation is boiled down to.

Start small and create something. You'll see that its easier than you think.

Business Silos, Organizational Silos, Information Silos Meanings - the 'Silo Effect'

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Business Silos, Organizational Silos, and Information Silos meanings and the Silo Effect

In reality, Business Silos, Organization Silos, and Information Silos all mean the same thing. For the sake of simplicity, let's refer all of them collectively as either business silos or organizational silos. What is the definition of these? Surprisingly, there are many different definitions all over the place. Doing a bit of research, there is a little commonality: Business Silos is a corporate structure where groups within a business enterprise are unable to effectively collaborate or communicate which creates a high level of overlap and inefficiencies.

But why have business silos become such a plague within corporations? This is simple: Self preservation and time.

Yes, this is a little negative, but when you research the topic of organization silos or business silos, you'll find that the businesses that demonstrate the 'siloed business behavior' the most, are focused on their own success and tend to focus inward instead of outward. This is especially true since the 2008 great recession.

The Business Silo Effect

The effect of business silos is very obvious: Lack of collaboration, lack of communication, and substantial lack of organization efficiency. Comically, things have gotten worse since the clash of the 'me generation' and the 'I generation'. This is beyond the scope here, but comical to mention. The results are often organizational departmental conflict. Can you imagine departments fighting within the same organization. Yes, unfortunately, its very common. The end result is an out of alignment and disorganized business which creates havoc on a business strategy.

Fixing Business Silos

This is not an easy thing to fix. Its like changing a leopards spots. One way to address this is to give business units a day in the life of other units. While doing so, treat them as they treat others. Basically, simulate the dysfunction the business silos create. People will quickly realize the problems the business silos create and will work to fix the behavior. The big assumption here is that they want to be fixed. If the business managers have no interest in fixing the business silo (they are setup to loose something), then addressing the business silo or information silo will be very challenging.

Hope this helps.

Business Silos, Organizational Silos, Information Silos Meanings - the 'Silo Effect'

Hello World-

Business Silos, Organizational Silos, and Information Silos meanings and the Silo Effect

In reality, Business Silos, Organization Silos, and Information Silos all mean the same thing. For the sake of simplicity, let's refer all of them collectively as either business silos or organizational silos. What is the definition of these? Surprisingly, there are many different definitions all over the place. Doing a bit of research, there is a little commonality: Business Silos is a corporate structure where groups within a business enterprise are unable to effectively collaborate or communicate which creates a high level of overlap and inefficiencies.

But why have business silos become such a plague within corporations? This is simple: Self preservation and time.

Yes, this is a little negative, but when you research the topic of organization silos or business silos, you'll find that the businesses that demonstrate the 'siloed business behavior' the most, are focused on their own success and tend to focus inward instead of outward. This is especially true since the 2008 great recession.

The Business Silo Effect

The effect of business silos is very obvious: Lack of collaboration, lack of communication, and substantial lack of organization efficiency. Comically, things have gotten worse since the clash of the 'me generation' and the 'I generation'. This is beyond the scope here, but comical to mention. The results are often organizational departmental conflict. Can you imagine departments fighting within the same organization. Yes, unfortunately, its very common. The end result is an out of alignment and disorganized business which creates havoc on a business strategy.

Fixing Business Silos

This is not an easy thing to fix. Its like changing a leopards spots. One way to address this is to give business units a day in the life of other units. While doing so, treat them as they treat others. Basically, simulate the dysfunction the business silos create. People will quickly realize the problems the business silos create and will work to fix the behavior. The big assumption here is that they want to be fixed. If the business managers have no interest in fixing the business silo (they are setup to loose something), then addressing the business silo or information silo will be very challenging.

Hope this helps.

Business Simulation for HR and Strategy

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More and more is being asked of Human Resources (HR). On one hand, they are tasked with dealing with the challenge of people (and their challenges). On the other hand, they are often given the smallest budget on a percentage basis. While this is going on, Human Resources gets to hear the usual song of, "People are our greatest assets."

To add to the challenge, they are increasingly being required to help execute the corporate strategy. The reasoning is simple: A strategy cannot successfully execute without the people. How does this get done?

Strategic Human Resources Business Simulation Overview

What is this exactly? A strategic human resources simulation is a tool that HR utilizes to help people understand the 'Why', 'How', and 'What' of a corporate strategic shift or strategic initiative. The business simulation gives participants a day in the life of your CEO, business manager, or general manager. This helps your managers or employees better understand your corporate strategy.

These Human Resource Business Simulations are often best managed by HR/L&D because they have the tools and skillsets to successfully 'wrap' the simulation program within the correct context. They have the experience and skills to make these solutions successful. It takes a strong partnership with the business manager, but often HR resource managers have this already.

Human Resource Business Simulations are not simple solutions, but they are a very effective business strategy simulation solution. These solutions push people to new levels of skill and understanding. The result is a more effective workforce with the tools to execute your corporate strategy more effectively and quickly.

You probably knew all of this, but for those that didn't, this serves as a general introduction. By no means is this an explain all, but it is intended to seed an idea. Remember, there are fantastic solutions solutions for Human Resources Business Strategy Simulations. These are great tools for organizational development.

Business Simulations- 3 Tips to Picking a Sim

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Thinking of going with a business simulation for your corporate initiative? Great. Often times, when getting started, you'll sit at your desk and say, "Ok, now that I know I'm going with a business simulation, how do I actually pick one?" It can be overwhelming. How about a few tips when thinking about business simulations:

Three Tips When Choosing a Business Simulation

Tip 1: Start small. You are going to get a lot of pressure to go large. Resist the temptation. This is especially the case when working with an outside provider.
Tip 2: Work backwards: What this means is: First, write down the top 3 goals of your training program. From there, back into a business simulation. This will help you focus on which business simulation is right for your needs
Tip 3: If you work with an outside provider, find a provider you trust. The world of business simulation providers is an interesting one. There are only a handful of providers so it won't take long to shop around. There are a lot more if you're going with an off the shelf solution. If you're going with a custom business simulation, the choices are far fewer.

Hope these brief and easy to understand tips help.

Just a quick post for this Monday morning. Have a great week.

Business Gamification, Business Games, Serious Games, Business Simulation

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Yes, we can agree. It is confusing. You can thank the marketing dept for creating this confusion. No offense, I've worked in marketing before and it just sort of happens. The only downside is that titles (trends) do a great job of confusing the general public. The world of business simulations, business games, serious games, and business gamification is no exception. But, this brings up the question:

What is the difference between business gamification, business games, and business simulations?

To make things simple on you: Very Little.

Here are some overviews of each:
- Business Gamification: The latest trendy name with a lot of sizzle (thanks Ted). It seems as though business gamification is the act of making games for consumer engagement around a topic that is intended to keep consumers coming back. Business gamification traditionally utilizes points, badges, or a mechanism of rewards that awards levels of accomplishment. You'll often see gamification on consumer brand web sites. A great example of gamification is foursquare. Like all the other titles in this post, this uses basic game theory to work.
- Business Simulation: Business simulations are traditionally used when a corporate strategy is involved. This might be in the form of a business shift, strategy re-development, or strategy testing. Business simulations are utilized to help corporate employees better understand a strategy, test a strategy, or accelerate a corporate strategy through knowledge and buy-in. There are certainly other uses, but this covers quite a bit in a small summary. Again, business simulations use basic game theory to work.
- Business Games and Serious Games: Yes, these are bundled. The hard-core thinkers are a) over thinking this and b) very frustrated that these are bundled. Business games and serious games are simply the process of turning a business topic into a game of some type. These are the basics of business gaming as a topic. Of course, these use basic game theory to operate.

As you can see, there are really only slight differences. In many cases, there is significant overlap. This information is designed to be a summary and not an exhaustive (and boring) analysis of every possible detail. This is really not needed to get you comfortably into the 80/20 rule. With just this simple summary, you are 80% there.

Hope this helps.