Wargaming is a LEADERSHIP activity.
Get direction from corporate leadership on:
Defining the problem space.
Establish CEO’s criteria for success.
Discuss Wargaming methods and options.
Agree on whether this is a test of the plan, a rehearsal for execution, or both.
Agree on organizational learning requirements.
Agree on business targets and objectives to be put at risk / tested.
The wargaming process can be as simple as a detailed narrative or master events list (as dictated by your plan or course of action) that describes:
actions,
probable reactions,
counteractions,
assets, and
resources to be utilized.
Validation of corporate strategic assumptions
Shared Situational Awareness amongst leadership
Confirmation or refinement of strategic centres of gravity and factors
Confirmation or refinement of your critical competitive, commercial, business or market intelligence requirements
Improved synchronization and alignment of business objectives and activities
Confirmation or refinement of the comparative pros / cons / strength / weaknesses of particular plans and courses of action (COAs)
Confirmation or refinement of your mission analysis
Confirmation or refinement of your corporate decision support requirements
Determination and confirmation of your strategic high value targets…. and those of your competitors
Confirmation or refinement of business targets and markets, clients, products and R&D
Confirmation or refinement of your corporate structure and identification of organizational orphans and “enfants terribles”
Identification of branch plans, sequels, new markets and focused opportunities
Refined performance measures
Improved corporate communication through disciplined and balanced feedback
Validation of corporate strategic assumptions
Shared Situational Awareness amongst leadership
Confirmation or refinement of strategic centres of gravity and factors
Confirmation or refinement of your critical competitive, commercial, business or market intelligence requirements
Improved synchronization and alignment of business objectives and activities
Confirmation or refinement of the comparative pros / cons / strength / weaknesses of particular plans and courses of action (COAs)
Confirmation or refinement of your mission analysis
Confirmation or refinement of your corporate decision support requirements
Determination and confirmation of your strategic high value targets…. and those of your competitors
Confirmation or refinement of business targets and markets, clients, products and R&D
Confirmation or refinement of your corporate structure and identification of organizational orphans and “enfants terribles”
Identification of branch plans, sequels, new markets and focused opportunities
Refined performance measures
Improved corporate communication through disciplined and balanced feedback
Scalability: Wargames can be utilized at all levels from strategic to tactical level and can also be progressively nested as such.
Focus: They can be used to comprehensively test a particular strategy or campaign options or they can be focused to test a singular discreet high risk business initiative or activity. Wargames can test the integration and alignment of an entire spectrum of business activities or discreet activities and initiatives such as:
Change Management,
Cultural Resistance to Change,
Institutional Inertia,
Corporate Unity,
Commercial Intelligence,
Information Security,
Brand Protection,
etc.
The wargaming process can be as simple as a detailed narrative or master events list (as dictated by your plan or course of action) that describes:
event,
assets, and
resources to be utilized.
A more comprehensive version adds operational sketches, your business execution graphics and notes to the narrative process in order to gain a clearer picture of how the plan will be executed within a particular business environment.
The most sophisticated and perhaps most complex form of Wargaming is modern, computer-aided modeling and simulation.
There’s a dangerous seduction here though .....fancier may not always be better.
Battlefield analogy – Marketshare.
Fall 1995, Biogen an innovation R&D drug company after 20 years is ready to launch their own first product – Avonex.
BioGen – Fall 1995. New Drug for MS
US FDA approval was imminent and competition was fierce.
Perceived competitive advantage was in delivery mechanism: a single injection once per week as opposed to multiple injections every week.
Core strength had been R&D and now was entering directly into competition with many of their former clients who were bigger and far more experienced.
Objective – Test pricing and market strategies in the US and Western Europe.
Four competitor teams: Biogen, Schering/Berlex, Teva and Serono. – All public companies!
Fewer than 20 Biogen executives were put on the competing teams to take on their own company.
3 moves projecting 4 years forward.
Market team (representing customers) assessed the proposals of the competitor teams and adjusted market share accordingly. The white team converted these into representative financial statements and shareprice.
Move 1 – Biogen’s product is priced well above the competition on the belief that their: “BioGen Outcome Guarantee” - if condition deteriorates there would be a full refund!