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Effective Executive Magazine:
Create your own business simulation lab to drill your teams in better decision making
 
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This article explores how teams learn and stresses on the importance of business simulation as a vital tool to improve organizational decision-making capabilities. The article also outlines a clear business-driven roadmap involving ten steps for organizations and enterprises who wish to develop their own in-house business simulation capabilities.

 
 
 

The huge interest in the `Serious Games' area, where gaming technology is used for serious or business purposes, has made it feasible for far-sighted organizations to gain enduring competitive advantage by creating their own unique business simulation labs where they can present their senior teams with all kinds of challenging business scenarios to improve decision making capabilities by allowing the big mistakes to be made in the simulator rather than in the business.

The first part of this article explores how people learn and explains why business simulation has become a vital tool for organizations who need their leaders and decision-makers to be `well drilled' in rehearsing the many highly challenging scenarios they could encounter in the business year. The second part of the article builds on this by proposing a systematic road-map which organizations can use to quickly and effectively define, design, calibrate, refine and experience the benefits of their own custom business simulation lab.

People act according to their `mental models' or `meaning structures.' In the classic book, The Fifth Discipline , that popularized the concept of the learning organization, mental models have been described as: "deeply ingrained assumptions, generalizations, or even pictures or images that influence how we understand the world and how we take action. Very often, we are not consciously aware of our mental models or the effects they have on our behavior. ...Mental models of what can or cannot be done in different management settings are no less deeply entrenched. The discipline of working with mental models starts with turning the mirror inwards; learning to unearth our internal pictures of the world, to bring them to the surface and hold them rigorously to scrutiny."

 
 
 

Effective Executive Magazine, Decision Making Process, Business Simulation Lab, Gaming Technology, Mental Models, Organizational Learning, Espoused Models, Central Management, Innovation Processes, Operational Units, Customer Management Simulation, Business Process, Risk Management Decisions, Central Business Objects.