The document discusses using business simulations to develop business acumen. It notes that good managers are becoming harder to find due to retiring baby boomers. Simulations allow participants to make business decisions running a virtual company, competing with others and reviewing financial results. This provides a practical way for new managers to learn concepts, practice decision-making, and get feedback from experts in a flexible, self-paced format that can be scaled through online delivery.

1. Using Simulations for Business Acumen Development Nathan Kracklauer Enspire Learning Copyright © Enspire Learning

2. The Business Problem Good managers are hard to find … and getting harder Copyright © Enspire Learning Manager Cohort: 40-59 Retiree Cohort: 60-79 Source: United Nations Department of Social Affairs

3. Strategies for Talent Development Headhunting Promoting/Training Copyright © Enspire Learning

4. Poll: Headhunting vs. Promoting Which do you think is a better approach for your company or industry? Copyright © Enspire Learning

5. Headhunting Pros Insight into competition Management experience Industry knowledge (sometimes) Cons Unknown quantities No company tacit knowledge Uncertain loyalty DOESN’T INCREASE THE TALENT POOL  higher costs for everyone Copyright © Enspire Learning

6. Promoting and Training Cons Ramp-up time and costs Peter Principle Pros Known quantities Industry and company tacit knowledge Loyalty and motivation through promotion carrot INCREASES THE TALENT POOL  lower pricing pressure Copyright © Enspire Learning

7. What Does A Manager Do All Day? Coaching Performance management Team management Project management Business plan development Reporting … . Decision-making Copyright © Enspire Learning

8. Business Acumen The ability to reliably predict the impact of a given business decision on key company financial metrics. Copyright © Enspire Learning

9. Business Acumen – Who Needs It? Copyright © Enspire Learning

10. Key Types Of Managerial Decisions Managing changes in business volume Changing utilization of facilities and personnel Increasing and decreasing staffing levels Shifting the cost structure: fixed costs versus variable costs Negotiations with vendors and customers Pricing and discounting Changing terms of payment Investing for growth Purchasing capital goods Implementing new processes Creating new offerings Many, many more… Copyright © Enspire Learning

11. Business Acumen – How Do You Get It? Learn concepts Practice Practice Practice Copyright © Enspire Learning

12. Poll: Learning Needs of New Managers What do you think are the most important learning needs of new managers? Copyright © Enspire Learning

13. Learning Needs Of New Managers Flexible scheduling Self-paced learning Application-oriented learning Access to expertise Informal and social learning Copyright © Enspire Learning

14. Learning Financial Concepts Flexible scheduling Self-paced learning Application-oriented learning E-Learning Copyright © Enspire Learning

15. Practicing Business Acumen – Decisions Application-oriented learning Access to expertise Informal and social learning Facilitated team-based simulations Copyright © Enspire Learning A game is a series of interesting decisions. -- Sid Meier, Creator of “Civilization”

16. Applied Business Acumen Simulation Run a virtual company Compete with other companies Make business decisions in operations, sales, research, and finance Review results in terms of realistic financial statements Copyright © Enspire Learning

17. Access to Expertise Facilitated debriefs with an instructor Review key financial concepts Analyze simulation decisions using financial toolkit Relate simulation decisions to real-world decisions on-the-job Copyright © Enspire Learning

18. Informal and Social Learning Best practice: cross-functional 3-4 person teams jointly run a virtual company Copyright © Enspire Learning

19. Business Challenge Copyright © Enspire Learning

20. Scalability Through Web-Based Delivery Copyright © Enspire Learning Classroom Delivery Virtual Delivery Play takes place over one day, including introduction and debriefs. Turns of the simulation advance every 15 minutes. Play takes place over 3-4 weeks. Introduction and debriefs take place through virtual meeting software. Turns advance daily. Teams meet in daily phone conferences to make decisions. 8am – 10am Introduction 10am – 11am Turns 1–4 11am – 11:30am Debrief 1 11:30am – 12:30pm Turns 5–8 12:30pm – 2:30pm Debrief 2/Lunch 2:30pm – 3:30pm Turns 9–12 3:30pm – 5pm Final Debrief Day 1 Introduction Days 2–5 Turns 1–4 Day 6 Online Debrief 1 Days 7–10 Turns 5–8 Day 11 Online Debrief 2 Days 12–15 Turns 9–12 Day 16 Final Debrief

21. Wrap-Up The coming management deficit To manage is to decide Business acumen: understanding financial implications of decisions Learning needs of new managers Simulations: practicing decision-making Scalable delivery of simulation-based training through web-delivery Copyright © Enspire Learning

22. Questions and Answers Copyright © Enspire Learning Nathan Kracklauer Enspire Learning [email_address] Presentation slides and a recording will be available at http://www.enspire.com/thought-leadership/webinars/business-acumen-simulations For more information on Business Challenge, contact us at sales@enspire.com.