Beyond Reality: Aspects of
Business Simulation Design
and Use that Deliver Learning
Jeremy J. S. B. Hall
Training 2010 Conference
February 3rd - Session 708
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
Audience
Users of business simulations?
Designers of business simulations?
Choosers/authorisers of business simulations?
None of the above?
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
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.
Simulations: What they do
PREPARE
P-1
SIMULATE
P-2
P-3
REVIEW
P-4
P-5
MAKE
DECISIONS
REPLAN
SIMULATE
ANALYSE
RESULTS
Why do you use simulations?
What are simulations best for?
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•
•
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Explore Knowledge and Challenge Understanding
Develop and Practise Skills
Motivate and Engage
Assessment and Evaluation
Enhance Learning
Churchill Fellowship Study (Hall, 1996)
What do you want from them?
Your wish list for a business simulation?
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–
–
–
A Model of your business?
Bling?
Effective, efficient & consistent learning?
Transfer
• Replicate your issues?
• Use by in-house trainers?
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)
Exploring “reality”
Two cases
1. The Simulator: The Reel Problem!
2. The cat, the kitten, the hysterical bird and
the naked man!
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 realworld setting” (Kozlowski and DeShon, 2004).
(Psychological Fidelity) - the extent to which the
simulation elicits the appropriate Cognitive
Processing – develops wisdom.
Beyond Reality Design
Strategic Design Issues
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Purpose
Focus
Tactical Design Issues
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•
•
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Simplicity & Stylisation
Beyond the Model - Interactions
Dynamics
Engagement
Design for Use
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 “the best” solution (as in the past?).
So, I see simulations being concerned with developing
Business Wisdom rather than Business Knowledge.
Design Aspect
Base simulation design on what needs to be learned
rather than what is real.
Learning Ladder
Focus
A
B C
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!
The Model: Stylising & Simplification
Imaginary
Generic Business
Industry Specific
Increasing stylisation
Surreal
“Real” Business
Increasing simplicity
Corporate Cartooning (Hall 2008)
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!
Interactions – Decisions & Results
Decreasing Ambiguity
Ambiguity affects cognition
Granularity affects workload
less detail
(granularity)
Corporate Cartooning (Hall 2008)
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)
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!
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.
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
DISTRAIN - Issues
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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
DISTRAIN - Simplification
One day duration limited complexity.
Markets limited to three sectors.
Only 15 separate decisions.
Some decisions were low granularity.
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.
DISTRAIN – The Outcomes
Feedback from Schneider Electric/Square D after
the first year’s use (multiple runs).
1.
2.
3.
4.
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.
Beyond Reality - Summary
Three Aspects
1. From Reality to Simplification & Stylisation
2. Engagement from Content to Fun
3. Learning: Support and Process
Does and Don’ts
1.
2.
3.
4.
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.
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
Bonus Slides
The slides beyond this point are to
explore issues and are not part of
the main presentation
Exploring knowledge &
challenging understanding
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Business Appreciation
Basic Finance
Business Strategy
Etc.
RETURN
Learning issues
Knowledge Acquisition
Comprehension
Application
Simulation
Synthesis
Evaluation
Lower Order Thinking
Higher Order Thinking
SIMULATION: Virtual Business Experience (Hall 1996)
To practice & develop skills
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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)
To motivate & engage
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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)
To Assess & Evaluate
• Assessing Learning (the learner’s view)
– Self-Assessment
– Informal Assessment
– Formal Assessment
• Evaluating Training (the provider’s view)
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Prior Learning
Delegate Needs
Remedial Needs
Course Needs
Learning Issues
Life-long learning issues
Explicit assessment can detract from learning
SIMULATION: Virtual Business Experience (Hall 1996)
RETURN
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
SIMULATION: Virtual Business Experience (Hall 1996)
RETURN
Systems Dynamics Model
Understanding
Cognition
Time 
Confusion
Happiness
Affection
Time 
Unhappiness
Too much work
Workload
Too little work
Time 
Computer Simulations: Design for Process (Hall 2008)
RETURN
BUSINESS SUCCESS
WISE DECISIONS
WISDOM
EXPERIENCE
Learning strategy must extend
beyond building knowledge
to encompass gaining experience
and through it wisdom
Simulations provide for this!
Shared Experience
Managed Experience
Simulated Experience
KNOWLEDGE
RETURN
The Learning Ladder
(www.simulations.co.uk/ladder)
DISTRAIN Decisions
Decisions
Granularity
Introduced
Percent Markup
by Market
Quarter 1
Inventory Purchases
by Market
Quarter 1
Marketing
Company
Quarter 1
Staff Numbers
Company
Quarter 2
Training Days
Company
Quarter 3
Number of Products
Company
Quarter 4
Receivable Days
Company
Quarter 4
Electronic Linkage
Yes/No
Quarter 5
Demo Equipment
Yes/No
Quarter 5
Demo Room
Yes/No
Quarter 5
Small Project Initiative
Yes/No
Quarter 5
DISTRAIN: Tutor Support