Business Simulations: Key to Strategy Execution
Business simulations are a powerful tool for building strategic alignment and developing capabilities. By letting leaders practice running their business in the context of their business, simulations enable participants to experience a new strategy first-hand, see its value and learn what great execution looks like in a highly realistic environment. With the strategy made personal for them, leaders can then understand and apply these learnings while executing the strategy on the job for better results.
Additionally, simulations offer a great way of developing business acumen among leaders, giving them a broad enterprise perspective, honing their strategic thinking, building their financial acumen and increasing their customer understanding. Business simulations also are a great context for creating leadership laboratories where leaders can be observed in their decision making and given in-depth developmental feedback as they practice the skills they use day to day on the job.
To maximize impact and relevance for participants, BTS simulations can be tailored or highly customized to the client’s business and strategic priorities. After the simulation is completed, participants develop action plans to apply back on the job and drive results. The impact is profound, with typical BTS simulations delivering a 10-12 time return on investment.
Business Simulation Definition
What is a business simulation? A business simulation—of your enterprise, business unit or process—uses real-world competitive dynamics and places leaders in a context where they step out of their normal day-to-day roles and gain exposure to the big picture. Participants make decisions in a risk-free environment, allowing them to experience critical interdependencies, execute best practices, and test the levers they can use to optimize their company’s key performance indicators.
Why Do Leading Corporations Use Business Simulations?
Companies are increasingly turning to simulations to help build strategic alignment and execution capabilities when faced with one or more of the following business challenges:
- Implementing a new strategy and key performance objectives
- Accelerating innovation and strategy execution
- Improving business acumen and financial decision-making
- Transforming sales organizations to help them better understand their customers' business
- Implementing culture change
- Integrating newly merged companies
- Modeling complex value-chains for accelerated growth
Within minutes of being placed in a simulation, users are grappling with issues and decisions that they must make—now. A year can be compressed into a day. And competition among teams spurs engagement, invention and discovery.