Business simulations have emerged as a popular and effective learning solution for organisations worldwide. These simulations provide participants with a practical and immersive learning environment, enabling them to develop their professional and interpersonal skills and to gain an understanding of a company’s commercial, business, and financial context.
In this article, we will explore the impact of business simulation games on commercial awareness and professional skills development.
We will examine how they provide a practical and memorable way to learn by doing, offer participants a practical setting from which to develop a grounded understanding of a company's commercial, business, and financial context and how they give participants an opportunity to experience new and challenging situations and to practise new professional and interpersonal skills.
What are Business Simulations?
Business simulations are designed to mimic real-life business scenarios that allow participants to simulate decision-making processes that they would encounter in a business environment.
These simulations can take various forms, such as in-person, virtual, or online, and they can cover various business functions, including finance, marketing, operations, and leadership.
The simulations often involve teams working together, making decisions, and responding to market changes.
The simulations can be customised to suit the needs of an organisation, and they are often used in conjunction with training programmes and development initiatives to provide participants with practical experience that can help them develop professional skills and commercial awareness.
The effectiveness of business simulations is derived from the fact that they provide a safe and controlled environment for participants to learn and experiment with new skills and behaviours.
The Impact of Business Simulations on Commercial Awareness
Commercial awareness refers to the ability to understand a company’s commercial, business, and financial context.
Business simulations are an effective tool for developing commercial awareness because they provide participants with a practical setting from which to develop a grounded understanding of a company's commercial and financial context.
Participants are required to make decisions based on financial and business data, respond to market changes, and manage resources effectively.
In a study conducted by CEB Global, it was found that business simulations were effective in developing commercial awareness in participants.
The study involved over 2000 employees, and it found that business simulations were more effective than other forms of training and development in increasing participants' commercial awareness.
The simulations helped participants to understand the impact of their decisions on the financial and commercial performance of the company, and they were effective in developing participants' financial literacy.
Business simulations offer a practical and memorable way to learn about commercial awareness. They provide participants with the opportunity to learn by doing, which is often lacking in traditional training workshops or online learning modules.
Participants are required to apply their commercial knowledge and make decisions in a simulated business environment, which helps them to internalise commercial behaviours required to drive an organisation’s strategic ambitions.
The Impact of Business Simulations on Professional Skills Development
Professional skills refer to the interpersonal and behavioural skills required to be effective in a business environment.
Business simulations are an effective tool for developing professional skills because they provide participants with a safe and controlled environment to experiment with new skills and behaviours.
In a study conducted by the Harvard Business Review, it was found that business simulations were effective in developing professional skills such as effective communication, commercial decision making, resilience, and taking people with you.
The study involved over 500 participants, and it found that business simulations were more effective than other forms of training and development in developing these skills.
Business simulations offer a highly effective way for participants to experience new and challenging situations and to practise new professional and interpersonal skills.
Participants are required to work in teams, communicate effectively, manage conflict, and make decisions based on available information.
The simulations are designed to be challenging and to push participants outside of their comfort zone, which helps them to develop resilience and adaptability.
Case Studies on Business Simulations
Several organisations have successfully implemented business simulations as part of their training and development programmes.
These case studies provide insights into the effectiveness of business simulations and how they have helped organisations to develop commercial awareness and professional skills.
Case Study 1: PwC's Virtual Business Game
PwC, a leading professional services firm, developed a virtual business game to provide its employees with an opportunity to experience real-life business challenges.
The game is designed to simulate the challenges faced by businesses in today's global economy, and it allows participants to experience the impact of their decisions on a company's financial performance.
The virtual business game is available to all PwC employees worldwide, and it is part of the firm's broader learning and development programme.
The game is designed to be engaging and interactive, and it requires participants to work in teams to make decisions that impact a simulated business.
The virtual business game has been highly effective in developing participants' commercial awareness and professional skills. It has helped participants to understand the importance of financial management, risk management, and strategic decision making.
It has also helped participants to develop their teamwork and communication skills, which are essential for success in a professional services environment.
Case Study 2: Barclays' Branch Manager Simulation
Barclays, a leading UK-based bank, developed a branch manager simulation to provide its employees with an opportunity to experience the challenges faced by branch managers.
The simulation is designed to simulate the day-to-day operations of a branch, and it requires participants to make decisions that impact the branch's financial performance.
The branch manager simulation has been highly effective in developing participants' commercial awareness and professional skills.
It has helped participants to understand the importance of customer service, sales, and financial management. It has also helped participants to develop their leadership and decision-making skills, which are essential for success in a management role.
Case Study 3: Lloyds Banking Group's Leadership Development Programme
Lloyds Banking Group, a leading UK-based financial services company, developed a leadership development programme that includes a business simulation.
The programme is designed to provide its employees with an opportunity to develop their leadership and commercial awareness skills.
The business simulation is designed to simulate the challenges faced by a company operating in a highly competitive and dynamic market. It requires participants to work in teams to make strategic decisions that impact the company's financial performance.
The simulation is highly immersive, and it requires participants to manage multiple business functions, including finance, marketing, operations, and human resources.
The leadership development programme has been highly effective in developing participants' leadership and commercial awareness skills.
It has helped participants to understand the importance of strategic decision-making, financial management, and teamwork. It has also helped participants to develop their communication and interpersonal skills, which are essential for success in a leadership role.
Recommendations for Organisations
If your organisation is considering using business simulations to develop commercial awareness and professional skills, here are some recommendations to consider:
1. Identify the learning objectives: Before designing a business simulation, it is important to identify the specific learning objectives you want to achieve. This will help you to design a simulation that is tailored to meet the specific needs of your organisation.
2. Tailor the simulation to reflect the organisation: To maximise the learning impact, it is imperative that the business simulation is tailored to reflect the leadership and commercial perspective of the organisation. This way, participants are immersed into simulated, yet realistic situations and scenarios where they can practise and apply skills relevant to the workplace and ultimately internalise commercial behaviours required to drive an organisation’s strategic ambitions.
3. Choose the right platform: There are various platforms available for delivering business simulations, including in-person, virtual, and online. Choose the platform that is best suited for your organisation's learning and development needs.
4. Involve experts in simulation design: To ensure that the simulation is accurate and relevant, involve subject matter experts in the design process. This will help to ensure that the simulation accurately reflects the real-world challenges faced by the organisation.
5. Provide feedback and debriefing: After completing the simulation, provide participants with feedback and debriefing to help them understand their performance and identify areas for improvement. This will help to reinforce the learning and ensure that participants are able to apply the skills they have learned in the simulation to the workplace.
Conclusion
Business simulations have emerged as a highly effective learning solution for organisations worldwide. They offer a practical and immersive learning environment, enabling participants to develop their professional and interpersonal skills and to gain an understanding of a company's commercial, business, and financial context.
Business simulations are effective in developing commercial awareness and professional skills because they provide a safe and controlled environment for participants to learn and experiment with new skills and behaviours.
MDA Training is a provider of bespoke business simulations and experiential learning solutions that can help organisations develop commercial awareness and professional skills among their employees.
MDA’s business simulations are tailored to reflect the leadership and commercial perspective of the organisation, providing participants with a practical and immersive learning experience.
With MDA Training, organisations can ensure that their employees are equipped with the necessary skills and behaviours to succeed in today's competitive business environment. With careful planning, organisations can design business simulations that are tailored to meet their specific learning objectives and provide participants with a practical and engaging learning experience.