Beyond Reality: Aspects of Business Simulation Design and Use that Deliver Learning

1. Beyond Reality: Aspects of Business Simulation Design and Use that Deliver Learning Jeremy J. S. B. Hall Training 2010 Conference February 3rd - Session 708

2. 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

3. Audience Users of business simulations? Designers of business simulations? Choosers/authorisers of business simulations? None of the above?

4. Agenda Introduction – me Simulations – what they do Why 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 waste Case Study – the DISTRAIN SIMULATION Summary

5. Jeremy Hall Designer 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.

6. Simulations: What they do PREPARE SIMULATE REVIEW P-1 P-2 P-3 P-4 P-5 MAKE DECISIONS REPLAN SIMULATE ANALYSE RESULTS

7. Why do you use simulations? What are simulations best for? • Explore Knowledge and Challenge Understanding • Develop and Practise Skills • Motivate and Engage • Assessment and Evaluation • Enhance Learning Churchill Fellowship Study (Hall, 1996)

8. 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?

9. 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)

10. Exploring “reality” Two cases • The Simulator: The Reel Problem! • The cat, the kitten, the hysterical bird and the naked man!

11. 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.

12. Beyond Reality Design Strategic Design Issues • Purpose • Focus Tactical Design Issues • Simplicity & Stylisation • Beyond the Model - Interactions • Dynamics • Engagement • Design for Use

13. 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 “thebest”solution (as in the past?). So, I see simulations being concerned with developing BusinessWisdomrather than Business Knowledge. Design Aspect Base simulation design on what needs to be learned rather than what is real. Learning Ladder

14. A B C Focus B + C = Learning Need (purpose) A + B = Issues addressed by the simulation Ideally B >> A (as A is waste and prolongs the simulation) B > C (learners time is used productively) Design Aspect Only build in decisions, models and results that address learning needs – not because they are real!

15. The Model: Stylising & Simplification Increasing stylisation Surreal Imaginary Generic Business Industry Specific “Real” Business Increasing simplicity Corporate Cartooning (Hall 2008)

16. Beyond the Model Issues Actions Outcomes 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!

17. Interactions – Decisions & Results Decreasing Ambiguity less detail (granularity) Ambiguity affects cognition Granularity affects workload Corporate Cartooning (Hall 2008)

18. Dynamics Simulations 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 Aspects Ramp complexity and challenge as the simulation progresses. Test the models’ behaviour. Computer Simulations: Design for Process (Hall 2008)

19. Engagement “Days of tedium in front of a computer: corporate gaming is just like real life” Times 6th Dec. 2008 Design Aspects: Challenge and purpose Appropriate workload (not too much or too little). Evolving experience (cognitive and affective). Appropriate ambiguity (linking cause and effect). Appropriate competition – winning and not losing!

20. 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.

21. 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

22. 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

23. DISTRAIN - Simplification One day duration limited complexity. Markets limited to three sectors. Only 15 separate decisions. Some decisions were lowgranularity.

24. DISTRAIN - Stylisation Decisions designed to link to Issues Decisions 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.

25. DISTRAIN – The Outcomes Feedback from Schneider Electric/Square D after the first year’s use (multiple runs). • Recalibration ensured the simulation was real world. • Continuous introduction of new ideas kept everyone interested. • Training by Schneider employees was more about local market knowledge than cost. • 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.

26. Beyond Reality - Summary Three Aspects • From Reality to Simplification & Stylisation • Engagement from Content to Fun • Learning: Support and Process Does and Don’ts • Don’t add stuff because it is real. • Do create a ramped, evolving experience. • Do spend time on designing the interactions. • Do link complexity to duration.

27. Jeremy J. S. B. Hall Phone +44 20 7537 2982 E-mail: jeremyhall@simulations.co.uk Web Site: www.simulations.co.uk from knowledge through simulated experience to wisdom

28. Bonus Slides The slides beyond this point are to explore issues and are not part of the main presentation

29. Lower Order Thinking Higher Order Thinking Exploring knowledge & challenging understanding • Business Appreciation • Basic Finance • Business Strategy • Etc. RETURN • Learning issues • Knowledge Acquisition • Comprehension • Application • Synthesis • Evaluation Simulation SIMULATION: Virtual Business Experience (Hall 1996)

30. To practice & develop skills • Decision-Making • Analysis & Diagnosis • Handling uncertainty & ambiguity • Present, promote & negotiate ideas • Team Working • Learning Issues • Share Experience & Knowledge RETURN SIMULATION: Virtual Business Experience (Hall 1996)

31. To motivate & engage • Break from lectures • Get sales people to think profit • Break down inhibitions • Fun!!! • Learning Issues • Business people are action oriented • Competition is a two edged sword RETURN SIMULATION: Virtual Business Experience (Hall 1996)

32. 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 Needs • Learning Issues • Life-long learning issues • Explicit assessmentcan detract from learning RETURN SIMULATION: Virtual Business Experience (Hall 1996)

33. 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 & Reinforce • Learning Issues • Adult Learners are concerned with process • Active Learning RETURN SIMULATION: Virtual Business Experience (Hall 1996)

34. Understanding Cognition Confusion Time  Affection Happiness Time  Unhappiness Too much work Workload Too little work Time  Systems Dynamics Model RETURN Computer Simulations: Design for Process (Hall 2008)

35. BUSINESS SUCCESS Learning strategy must extend beyond building knowledge to encompass gaining experience and through it wisdom Simulations provide for this! WISE DECISIONS WISDOM Shared Experience Managed Experience EXPERIENCE Simulated Experience KNOWLEDGE The Learning Ladder (www.simulations.co.uk/ladder) RETURN

36. DISTRAIN Decisions

37. DISTRAIN: Tutor Support