Beyond Reality: Aspects of Business Simulation Design and Use that Deliver Learning Jeremy J. S. B. Hall Training 2010 Con...
Purpose <ul><li>Explore: </li></ul><ul><ul><li>The elements and structure of a business simulation designed for learning. ...
Audience <ul><li>Users of business simulations? </li></ul><ul><li>Designers of business simulations? </li></ul><ul><li>Cho...
Agenda <ul><li>Introduction – me </li></ul><ul><li>Simulations – what they do </li></ul><ul><li>Why do  you  use simulatio...
Jeremy Hall <ul><li>Designer of business simulations </li></ul><ul><ul><li>Over the last 40 years have designed 60+ </li><...
Simulations: What they do PREPARE REVIEW SIMULATE P-2 P-1 P-3 P-4 P-5 MAKE DECISIONS ANALYSE RESULTS SIMULATE REPLAN
Why do  you  use simulations? <ul><li>Explore Knowledge and Challenge Understanding </li></ul><ul><li>Develop and Practise...
What do  you  want from them? <ul><li>Your wish list for a business simulation? </li></ul><ul><ul><li>A Model of your busi...
Reality the holy grail? <ul><li>A commonly held view is that an exact replica of reality is the ultimate goal of business ...
Exploring  “reality” <ul><li>Two cases </li></ul><ul><li>The Simulator: The Reel Problem! </li></ul><ul><li>The cat, the k...
The simulator: the reel problem Would reality be better? And this from someone who finds tail chasing valid. I’ve got my n...
The cat, the kitten, the hysterical bird and the naked man. Reality is confusing, complex, uncontrolled and messy! squawk ...
What sort of reality? <ul><li>“ The degree to which the game corresponds with the real life situation”  (Norris, 1986)   (...
Beyond Reality Design <ul><ul><li>Strategic Design Issues  </li></ul></ul><ul><ul><li>Purpose  </li></ul></ul><ul><ul><li>...
Learning, Learning, Learning <ul><li>For  business simulations , the learning purpose in today’s turbulent and ever changi...
Focus <ul><li>B + C = Learning Need (purpose) </li></ul><ul><li>A + B = Issues addressed by the simulation </li></ul><ul><...
Stylisation & Simplification An Iconic Model of Reality - The London Underground
The Model: Stylising & Simplification Increasing simplicity Surreal “ Real” Business Imaginary Generic Business Increasing...
Beyond the Model Decisions The Model Results Need to relate to issues, stimulate thought and not be obvious. Need to link ...
Interactions – Decisions & Results Decreasing Ambiguity less detail (granularity) Ambiguity affects cognition Granularity ...
Dynamics <ul><li>Simulations are  dynamic  and this  must  be allowed for. </li></ul><ul><li>To ensure deep thought decisi...
Engagement <ul><li>“ Days of tedium in front of a computer: corporate gaming is just like real life”  Times 6 th  Dec. 200...
Design for Use <ul><li>Use by In-house Trainers - Transfer </li></ul><ul><ul><li>“ Training by Schneider employees was mor...
DISTRAIN Case Study <ul><li>Improve Sales Engineers’ “Business to Business” knowledge   </li></ul><ul><li>Replicate a Schn...
DISTRAIN - Issues <ul><li>Replicate an electrical distributor </li></ul><ul><li>Interactions across whole enterprise </li>...
DISTRAIN - Simplification <ul><li>One day duration limited complexity. </li></ul><ul><li>Markets limited to three sectors....
DISTRAIN - Stylisation <ul><li>Decisions  designed to link to Issues </li></ul><ul><li>Decisions  and Issues introduced in...
DISTRAIN – The Outcomes <ul><li>Feedback from Schneider Electric/Square D after the first year’s use (multiple runs). </li...
Beyond Reality - Summary <ul><li>Three Aspects </li></ul><ul><ul><li>From Reality to Simplification & Stylisation </li></u...
Jeremy J. S. B. Hall Phone  +44  20 7537 2982 E-mail:  [email_address] Web Site:  www.simulations.co.uk from knowledge thr...
Bonus Slides The slides beyond this point are to explore issues and are not part of the main presentation
Exploring knowledge & challenging understanding <ul><li>Business Appreciation </li></ul><ul><li>Basic Finance </li></ul><u...
To practice & develop skills <ul><li>Decision-Making </li></ul><ul><li>Analysis & Diagnosis </li></ul><ul><li>Handling unc...
To motivate & engage <ul><li>Break from  lectures </li></ul><ul><li>Get sales people to  think profit </li></ul><ul><li>Br...
To Assess & Evaluate <ul><li>Assessing Learning (the learner’s view) </li></ul><ul><ul><li>Self-Assessment </li></ul></ul>...
Enhance Learning <ul><li>Link Theory & Practice </li></ul><ul><ul><li>Adult Learners concerned with using learning </li></...
Systems Dynamics Model RETURN Computer Simulations: Design for Process  (Hall 2008) Time   Understanding Confusion Cognit...
KNOWLEDGE BUSINESS SUCCESS WISE DECISIONS WISDOM EXPERIENCE Shared Experience Managed Experience Simulated Experience Lear...
DISTRAIN Decisions Quarter 5 Quarter 5 Quarter 5 Quarter 5 Quarter 4 Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 1 Qua...
DISTRAIN: Tutor Support
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Beyond Reality: Aspects of Business Simulation Design and Use that Deliver Learning

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  • The simulation process consists of three stages . An initial preparation involving a short briefing, after which the training group splits into several teams of, typically, four or five managers to prepare, organise and plan. Next, main part of the process involves the simulation of several time periods . Time periods that, depending on the simulation represent years, quarters, months etc. Finally, the teams recombine to discuss and compare results . Often, this involves each team making a formal presentation .
  • I started my modelling career designing operations research models of the GE department – here a precise model of processes, the marketplace etc. But I did this to improve the business NOT to learn about business and improving my performance. The question then is how this impacts the simulation model, decisions, environment etc.
  • The form of today’s Underground map focuses on purpose – travel by train. And we need simulations to do the same
  • B relative to C indicates the effectiveness of learning As A + B determines the amount of time spent on the simulation, A relative to B indicates the efficiency of learning So remove simulation elements from A and if possible add elements to B
  • I expect that some of you have visited London and travelled on our Underground using this map. Unfortunately the Underground map is a complete distortion of reality – lines are straightened and rearranged. The Thames is nothing like as wide as depicted. Distances in central London are expanded and distances outside the centre are compressed – a complete misrepresentation of geographic reality. Happily, there is a better though out of date map, Just think how useful this would be with ALL the current lines included.
  • Designing a simulation is somewhat like designing an automobile – engineering design is not enough – ultimately it is how it behaves on the road or track.
  • An article in the Times newspaper described the journalist’s experience with business simulations in terms of tedium and and that this because of the reality of the simulations that he experienced.
  • Switch to Souperhot to access ending situation.
  • Beyond reality training

    1. 1. Beyond Reality: Aspects of Business Simulation Design and Use that Deliver Learning Jeremy J. S. B. Hall Training 2010 Conference February 3 rd - Session 706
    2. 2. Purpose <ul><li>Explore: </li></ul><ul><ul><li>The elements and structure of a business simulation designed for learning. </li></ul></ul><ul><ul><li>The appropriate level of reality to ensure learning and engagement. </li></ul></ul><ul><ul><li>What is required beyond the simulation model for a simulation that focuses on learning rather than just replicating the real world. </li></ul></ul><ul><li>Strategic simulation design issues </li></ul>
    3. 3. Audience <ul><li>Users of business simulations? </li></ul><ul><li>Designers of business simulations? </li></ul><ul><li>Choosers/authorisers of business simulations? </li></ul><ul><li>None of the above? </li></ul>
    4. 4. Agenda <ul><li>Introduction – me </li></ul><ul><li>Simulations – what they do </li></ul><ul><li>Why do you use simulations? </li></ul><ul><li>What do you want from them? </li></ul><ul><li>Reality: “the reel problem” and “the cat, the kitten the hysterical bird and the naked man” </li></ul><ul><li>Beyond reality: design for learning – issues, focus and waste </li></ul><ul><li>Case Study – the DISTRAIN SIMULATION </li></ul><ul><li>Summary </li></ul>
    5. 5. Jeremy Hall <ul><li>Designer of business simulations </li></ul><ul><ul><li>Over the last 40 years have designed 60+ </li></ul></ul><ul><li>User of simulations for training </li></ul><ul><ul><li>Run them around the world 2,000 + times </li></ul></ul><ul><li>Believe passionately in their use and how to improve their design. </li></ul>
    6. 6. Simulations: What they do PREPARE REVIEW SIMULATE P-2 P-1 P-3 P-4 P-5 MAKE DECISIONS ANALYSE RESULTS SIMULATE REPLAN
    7. 7. Why do you use simulations? <ul><li>Explore Knowledge and Challenge Understanding </li></ul><ul><li>Develop and Practise Skills </li></ul><ul><li>Motivate and Engage </li></ul><ul><li>Assessment and Evaluation </li></ul><ul><li>Enhance Learning </li></ul><ul><li>Churchill Fellowship Study (Hall, 1996) </li></ul>What are simulations best for?
    8. 8. What do you want from them? <ul><li>Your wish list for a business simulation? </li></ul><ul><ul><li>A Model of your business? </li></ul></ul><ul><ul><li>Bling? </li></ul></ul><ul><ul><li>Effective, efficient & consistent learning? </li></ul></ul><ul><ul><li>Transfer </li></ul></ul><ul><ul><ul><li>Replicate your issues? </li></ul></ul></ul><ul><ul><ul><li>Use by in-house trainers? </li></ul></ul></ul>
    9. 9. Reality the holy grail? <ul><li>A commonly held view is that an exact replica of reality is the ultimate goal of business simulation design. </li></ul><ul><li>“ Designers of business simulations all have the common objective of making their model as realistic as possible” (Decker et al, 1987) </li></ul><ul><li>“ Management simulations are valid pedagogic tools provided they are complex and realistic” (Miller & Leroux-Demers 1992) </li></ul>
    10. 10. Exploring “reality” <ul><li>Two cases </li></ul><ul><li>The Simulator: The Reel Problem! </li></ul><ul><li>The cat, the kitten, the hysterical bird and the naked man! </li></ul>
    11. 11. The simulator: the reel problem Would reality be better? And this from someone who finds tail chasing valid. I’ve got my new bird simulator But it’s a cotton reel! UK: Cotton Reel US: Cotton Spool It’s less funny in American But the shape, structure, flavour & colour are not valid.
    12. 12. The cat, the kitten, the hysterical bird and the naked man. Reality is confusing, complex, uncontrolled and messy! squawk squawk squawk squawk squawk p u r rr r r r mew squawk
    13. 13. What sort of reality? <ul><li>“ The degree to which the game corresponds with the real life situation” (Norris, 1986) ( External Validity) - a precise mathematical model of the business? </li></ul><ul><li>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. </li></ul>
    14. 14. Beyond Reality Design <ul><ul><li>Strategic Design Issues </li></ul></ul><ul><ul><li>Purpose </li></ul></ul><ul><ul><li>Focus </li></ul></ul><ul><ul><li>Tactical Design Issues </li></ul></ul><ul><ul><li>Simplicity & Stylisation </li></ul></ul><ul><ul><li>Beyond the Model - Interactions </li></ul></ul><ul><ul><li>Dynamics </li></ul></ul><ul><ul><li>Engagement </li></ul></ul><ul><ul><li>Design for Use </li></ul></ul>
    15. 15. Learning, Learning, Learning <ul><li>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?). </li></ul><ul><li>So, I see simulations being concerned with developing Business Wisdom rather than Business Knowledge . </li></ul><ul><li>Design Aspect </li></ul><ul><ul><li>Base simulation design on what needs to be learned rather than what is real. </li></ul></ul>Learning Ladder
    16. 16. Focus <ul><li>B + C = Learning Need (purpose) </li></ul><ul><li>A + B = Issues addressed by the simulation </li></ul><ul><li>Ideally </li></ul><ul><ul><li>B >> A (as A is waste and prolongs the simulation) </li></ul></ul><ul><ul><li>B > C (learners time is used productively) </li></ul></ul><ul><li>Design Aspect </li></ul><ul><ul><li>Only build in decisions, models and results that address learning needs – not because they are real, cool or neat! </li></ul></ul>A B C
    17. 17. Stylisation & Simplification An Iconic Model of Reality - The London Underground
    18. 18. The Model: Stylising & Simplification Increasing simplicity Surreal “ Real” Business Imaginary Generic Business Increasing stylisation Corporate Cartooning (Hall 2008) Industry Specific
    19. 19. 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
    20. 20. Interactions – Decisions & Results Decreasing Ambiguity less detail (granularity) Ambiguity affects cognition Granularity affects workload Corporate Cartooning (Hall 2008)
    21. 21. Dynamics <ul><li>Simulations are dynamic and this must be allowed for. </li></ul><ul><li>To ensure deep thought decisions must be appropriately ambiguous. </li></ul><ul><li>Cognitive workload must be taken into account. </li></ul><ul><li>Interactions must be stable and reasonable . </li></ul><ul><li>Design Aspects </li></ul><ul><ul><li>Ramp complexity and challenge as the simulation progresses. </li></ul></ul><ul><ul><li>Test the models’ behaviour. </li></ul></ul>Computer Simulations: Design for Process (Hall 2008)
    22. 22. Engagement <ul><li>“ Days of tedium in front of a computer: corporate gaming is just like real life” Times 6 th Dec. 2008 </li></ul><ul><li>Design Aspects: </li></ul><ul><ul><li>Challenge and purpose </li></ul></ul><ul><ul><li>Appropriate workload (not too much or too little). </li></ul></ul><ul><ul><li>Evolving experience (cognitive and affective). </li></ul></ul><ul><ul><li>Appropriate ambiguity (linking cause and effect). </li></ul></ul><ul><ul><li>Appropriate competition – winning and not losing! </li></ul></ul>
    23. 23. Design for Use <ul><li>Use by In-house Trainers - Transfer </li></ul><ul><ul><li>“ Training by Schneider employees was more about having local market knowledge than cost.” </li></ul></ul><ul><ul><li>“ Each simulation was tutored by a Gambro senior manager because this person would have the necessary in-depth knowledge of the business.” </li></ul></ul><ul><li>Tutor Support System – Ease of Use </li></ul><ul><ul><li>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. </li></ul></ul>
    24. 24. DISTRAIN Case Study <ul><li>Improve Sales Engineers’ “Business to Business” knowledge </li></ul><ul><li>Replicate a Schneider Distributor </li></ul><ul><li>Be run by Schneider staff </li></ul><ul><li>Provide Active Learning </li></ul><ul><li>Last no more than a day </li></ul><ul><li>Existing simulation extensively customized </li></ul>
    25. 25. DISTRAIN - Issues <ul><li>Replicate an electrical distributor </li></ul><ul><li>Interactions across whole enterprise </li></ul><ul><li>Distributor objectives and measures </li></ul><ul><li>Finance – profitability, liquidity etc. </li></ul><ul><li>Marketing – customer needs and influences </li></ul><ul><li>Purchasing – inventory management </li></ul><ul><li>Human Resources – skills and availability </li></ul>
    26. 26. DISTRAIN - Simplification <ul><li>One day duration limited complexity. </li></ul><ul><li>Markets limited to three sectors. </li></ul><ul><li>Only 15 separate decisions . </li></ul><ul><li>Some decisions were low granularity . </li></ul>
    27. 27. DISTRAIN - Stylisation <ul><li>Decisions designed to link to Issues </li></ul><ul><li>Decisions and Issues introduced in stages. </li></ul><ul><li>Interactions: Decisions and Results. </li></ul><ul><li>Some decisions company wide. </li></ul><ul><li>Profit levels like industry but better. </li></ul><ul><li>Limited types of customers, promotions and resources. </li></ul><ul><li>Customer Service dynamic removed. </li></ul>
    28. 28. DISTRAIN – The Outcomes <ul><li>Feedback from Schneider Electric/Square D after the first year’s use (multiple runs). </li></ul><ul><li>Recalibration ensured the simulation was real world. </li></ul><ul><li>Continuous introduction of new ideas kept everyone interested. </li></ul><ul><li>Training by Schneider employees was more about local market knowledge than cost. </li></ul><ul><li>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. </li></ul>
    29. 29. Beyond Reality - Summary <ul><li>Three Aspects </li></ul><ul><ul><li>From Reality to Simplification & Stylisation </li></ul></ul><ul><ul><li>Engagement from Content to Fun </li></ul></ul><ul><ul><li>Learning: Support and Process </li></ul></ul><ul><li>Does and Don’ts </li></ul><ul><ul><li>Don’t add stuff because it is real. </li></ul></ul><ul><ul><li>Do create a ramped, evolving experience. </li></ul></ul><ul><ul><li>Do spend time on designing the interactions. </li></ul></ul><ul><ul><li>Do link complexity to duration. </li></ul></ul>
    30. 30. Jeremy J. S. B. Hall Phone +44 20 7537 2982 E-mail: [email_address] Web Site: www.simulations.co.uk from knowledge through simulated experience to wisdom
    31. 31. Bonus Slides The slides beyond this point are to explore issues and are not part of the main presentation
    32. 32. Exploring knowledge & challenging understanding <ul><li>Business Appreciation </li></ul><ul><li>Basic Finance </li></ul><ul><li>Business Strategy </li></ul><ul><li>Etc. </li></ul><ul><li>Learning issues </li></ul><ul><ul><li>Knowledge Acquisition </li></ul></ul><ul><ul><li>Comprehension </li></ul></ul><ul><ul><li>Application </li></ul></ul><ul><ul><li>Synthesis </li></ul></ul><ul><ul><li>Evaluation </li></ul></ul>RETURN Simulation SIMULATION: Virtual Business Experience (Hall 1996) Lower Order Thinking Higher Order Thinking
    33. 33. To practice & develop skills <ul><li>Decision-Making </li></ul><ul><li>Analysis & Diagnosis </li></ul><ul><li>Handling uncertainty & ambiguity </li></ul><ul><li>Present, promote & negotiate ideas </li></ul><ul><li>Team Working </li></ul><ul><li>Learning Issues </li></ul><ul><ul><li>Share Experience & Knowledge </li></ul></ul>RETURN SIMULATION: Virtual Business Experience (Hall 1996)
    34. 34. To motivate & engage <ul><li>Break from lectures </li></ul><ul><li>Get sales people to think profit </li></ul><ul><li>Break down inhibitions </li></ul><ul><li>Fun!!! </li></ul><ul><li>Learning Issues </li></ul><ul><ul><li>Business people are action oriented </li></ul></ul><ul><ul><li>Competition is a two edged sword </li></ul></ul>RETURN SIMULATION: Virtual Business Experience (Hall 1996)
    35. 35. To Assess & Evaluate <ul><li>Assessing Learning (the learner’s view) </li></ul><ul><ul><li>Self-Assessment </li></ul></ul><ul><ul><li>Informal Assessment </li></ul></ul><ul><ul><li>Formal Assessment </li></ul></ul><ul><li>Evaluating Training (the provider’s view) </li></ul><ul><ul><li>Prior Learning </li></ul></ul><ul><ul><li>Delegate Needs </li></ul></ul><ul><ul><li>Remedial Needs </li></ul></ul><ul><ul><li>Course Needs </li></ul></ul><ul><li>Learning Issues </li></ul><ul><ul><li>Life-long learning issues </li></ul></ul><ul><ul><li>Explicit assessment can detract from learning </li></ul></ul>RETURN SIMULATION: Virtual Business Experience (Hall 1996)
    36. 36. Enhance Learning <ul><li>Link Theory & Practice </li></ul><ul><ul><li>Adult Learners concerned with using learning </li></ul></ul><ul><li>Integrate </li></ul><ul><ul><li>Both with past learning and elements of course </li></ul></ul><ul><li>Assimilate (memorise) </li></ul><ul><ul><li>Deep Processing </li></ul></ul><ul><ul><li>15 x more effective than lectures </li></ul></ul><ul><li>Revise, Review & Reinforce </li></ul><ul><li>Learning Issues </li></ul><ul><ul><li>Adult Learners are concerned with process </li></ul></ul><ul><ul><li>Active Learning </li></ul></ul>RETURN SIMULATION: Virtual Business Experience (Hall 1996)
    37. 37. Systems Dynamics Model RETURN Computer Simulations: Design for Process (Hall 2008) Time  Understanding Confusion Cognition Time  Happiness Unhappiness Affection Time  Too much work Too little work Workload
    38. 38. KNOWLEDGE BUSINESS SUCCESS WISE DECISIONS WISDOM EXPERIENCE Shared Experience Managed Experience Simulated Experience Learning strategy must extend beyond building knowledge to encompass gaining experience and through it wisdom Simulations provide for this! RETURN The Learning Ladder (www.simulations.co.uk/ladder)
    39. 39. DISTRAIN Decisions Quarter 5 Quarter 5 Quarter 5 Quarter 5 Quarter 4 Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 1 Quarter 1 Introduced Yes/No Small Project Initiative Yes/No Demo Room Yes/No Demo Equipment Yes/No Electronic Linkage Company Receivable Days Company Number of Products Company Training Days Company Staff Numbers Company Marketing by Market Inventory Purchases by Market Percent Markup Granularity Decisions
    40. 40. DISTRAIN: Tutor Support

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