The 2008 global meltdown was a watershed event that has transformed the corporate landscape and from which no country, company or corporate function (and few individuals) has emerged unscathed. For all corporate functions (including training) there will continue to be intense pressure in the current and future environment to “prove our worth” or be quickly sidelined – perhaps permanently. The unique challenge for corporate training functions is that, in general, we have not been seen as directly supporting the corporate strategy or contributing to the bottom line. Training in a Post Meltdown World, by John Wells, CEO of Executive Perspectives, provides practical tools to address this challenge and deliver measureable business results through training.
In his latest film Edge of Tomorrow, Tom Cruise must save the world from total annihilation yet again. As usual, he is completely overmatched by his enemies, an alien race set on destroying the earth that has better weapons, better technology, and brighter minds. This time around Tom Cruise’s character can’t rely on his ability to shoot a gun or leap off buildings to win. His enemies have what seems to be an insurmountable advantage — they can peer into the future, predict his next move, and counter it with ruthless efficiency.
Imagine that scenario playing out in the world of business:
- Scenario 1: Your organization is about to launch a new product and, after months of development, a competitor launches a competing product with better features at a lower price and with better distribution a month earlier.
- Scenario 2: Your organization decides to invest in new manufacturing capabilities that will reduce your cost of goods and improve quality, only to find that another competitor implements these capabilities six months before you.
These are not unrealistic scenarios. In fact, they are real world examples taken from clients I have worked with at Executive Perspectives. Unlike Mr. Cruise, their competitors were not aliens with a technology that allows them to see into the future — they were just men and women who somehow managed to out-think and out-execute their competitors. So the question is, how can we ensure that our leaders are not out-thought and out-executed by the competition? Mr. Cruise has the answer: Live – Die – Repeat, or as we say in the Business Simulation World:
Play – Learn – Repeat
In the movie, Cruise and his co-star, Emily Blunt, use a “magic” technology that allows them to continue to fight the same battle over and over again, applying their learning to each situation so that they can overcome the obstacles thrown in front of them and get closer to their goal. Sound familiar?
For anyone who has played a game of Angry Birds, Super Mario Brothers, or Call of Duty, this should sound quite familiar. You start off the game and quickly realize you are unable to overcome the obstacles, and then you die…repeatedly. Yet you continue to try, and through that sustained effort you begin to understand the situation more completely. You have a better sense of the cause and effect of your actions, you develop new strategies, and eventually you succeed. The best part of the process is that it doesn’t feel like work at all, it’s actually fun!
This is the same formula that we use at EP to build leadership and business capabilities at Fortune 500 organizations across the globe. Put people in realistic business settings where they need to solve problems, have them work in groups to address those issues, get real time feedback on the impact of their decisions on business metrics, understand what they did wrong, and try a different way to address the issue based on the lessons learned.
At the end of the movie Tom Cruise wins because he out-practiced the competition, allowing him to out-think and out-strategize them despite their overwhelming advantage. Your team can have the same advantage Tom Cruise had by out-practicing the competition. It doesn’t require alien technology — just EP simulations!
It has been over two years since I challenged the audience at TEDx Gramercy to bring games into their lives as a way to transform the way they learn, and to avoid being a “Game-o-Phobe.” Now that our next generation of speakers is ready to take the stage at TEDx Gramercy 2014, I thought it would be a good idea to consider the changes in public perception of games and the transformation of learning over the last two years.
One thing that is abundantly clear is that games are no longer considered child’s play
We are in the midst of a revolution in how people play, perceive, and consume games, which I am confident will have long-lasting effects on how we as a society view the place of games in our lives. Just consider the front cover of the New York Times on August 31, 2014. The headline read “In e-Sports, Video Gamers Draw Real Crowds and Real Money.” Note the use of the word “Real” twice, an acknowledgement that games should be taken seriously by serious people. The picture to the left shows thousands of people filling the Key
The International – one of the largest e-Sport tournaments in the World attracts thousands in person and millions on-line
Arena in Seattle watching The International, a video game tournament where the winning team would walk away with a $6 million purse.
Two years ago, most of us had never heard of e-sports, but it was already an incredibly popular form of entertainment. In 2013 more people watched the League of Legends Season 3 World Championship than watched Game 7 of the NBA Finals, the BCS College Football Championship, and the World Series!
Watching professional video-gamers play live in massive tournaments is just the tip of the iceberg. Amazon recently purchased a company called Twitch for over $1B. Twitch is a website and App that allows people to watch others play video games. Some watch for pure entertainment, but others use it to learn how to play games better. Microsoft has been reported to be in talks with the creators of ridiculously popular game
Total Viewers in Millions of Major 2013 Sporting Events
Minecraft for $2B. And, last but not least, consider the recent purchase of Oculus Rift by Facebook for $2B. Oculus Rift is a virtual reality headset that provides true sensory immersion that has the potential to not only transform games, but the way that we interact and share experiences virtually. (Think The Matrix, but with a happier backstory.) I just received our Oculus yesterday, and after just a short time using it, I am confident that this is a game changer (pun intended).
On the educational front, there is positive movement towards the use of games in traditional educational processes as well. Scholars are beginning to better understand the role that games can play in the educational process. While traditional lectures, textbooks, and tests will always have a place in developing cognitive skills, research has proven that games are superior at developing non-cognitive skills, such as collaboration, grit, communication, and discipline, which are essential to successful development and success in our ever-more collaborative and networked world.
However, as anyone knows who has a child, parents are as much a part of the educational process as the teachers and administrators of our schools. Without acceptance by parents, games will be relegated to the “wasted time category” when at home. As a parent of a 5th grade boy who spent a lot of his summer playing Minecraft, Dota2, and Team Fortress, I understand the tension that one feels when seeing their child sitting for hours on end in front of a computer on a beautiful summer day.
That being said, I do sense a shift in attitudes towards games in the media and in my day to day interactions with other parents. A recent dinner table discussion with six other parents on the virtues of Minecraft showed a true appreciation of how it can lead to the development of creativity, curiosity, collaboration, and mischief. Recently my son, Asher, was inspired to improve his Minecraft building skills, and, using the Internet, he found multiple guides on YouTube describing how to design different structures. The results were fantastic. His new Minecraft home is worthy of Architectural Digest.
Oculus Rift VR Headset – The Next Breakthrough in Games and Education?
This is the type of experience that gets me excited about the future of games and learning. Imagine a world where Asher would get as excited about American History as he is about Minecraft. Maybe he is playing a game where he takes on the role of George Washington as he is managing the Winter Camp in Morristown, NJ and must keep his army well-fed and morale high in order to be prepared to take on the British in the coming spring. He wants to learn more about how you improve morale so he uses the Internet to research the drivers of morale in troops. He wants to keep his army healthy so he learns about the most effective and nutritious foods to buy.
This type of user-directed learning is often ignited by an inspirational teacher. We can all remember that one teacher that made us want to learn more. Games have the power to not only enhance that teacher’s ability to inspire, but to create a whole new way to inspire us to want to learn more. For more on this concept, James Gee, a games researcher, discusses the power of games to create engagement
and interest that leads to user-directed learning in his talk Learning With Video Games (https://www.youtube.com/watch?v=JnEN2Sm4IIQ).
Inspiring others to learn through games is not only possible, but it is already being done by innovative and creative teachers and leaders around the world. However, it requires extra work, time, and expertise to build these game-based learning experiences. The skills required to build these learning experiences are very different than the skills that are typically associated with developing teaching and training experiences.
So the question must be posed again, as it was in my TEDx talk two years ago: Where does this leave us — should we be optimistic or pessimistic about the future of games in learning?
I believe that we are on the cusp of a major transformation in how we learn. Games are now serious business, and money will help address many of the technological barriers to developing games that educate. Members of Generation X, the first generation to be raised playing video games, are now in leadership positions at both academic and corporate settings which is leading to more excitement and experimentation with games for learning. Also, the promise of combining the decision-making process of games with the analytical power of big data will allow us to finally address one of the most vexing challenges of education — measuring the effectiveness of our efforts.
So congratulations game-lovers, we are making progress. This is a great time to be a gamer who believes in the power of games to not only entertain but to transform how we live, work, and learn. I look forward to hearing what you have done in the last two years to bring gaming into your life, your work, and your play!
Send me your favorite articles, links, and videos to @MarshallBmann on Twitter #nogameophobes.
Research has proven that games and simulations are a more effective way for people to learn. Why then, do we continue to rely on traditional and ineffective ways of learning that we have relied on for thousands of years? Marshall Bergmann, Vice-President of the New York Office of EP, answers this question and provides an inspiring view of the future of learning in his TEDx Gramercy talk entitled The Hidden Power of Games.
Recently I was engaged in an informal chat with a few colleagues, when the 70:20:10 model reared its head. Based on the various opinions on the subject, I did my own investigation. What really surprised me was that the 70:20:10 model has been around since the 1960’s.
However, my real concern surrounded the lack of details regarding a proper research study on the application of the 70:20:10 model. After some research and intense scrutiny on the web, it appears that Charles Jenning has the most research & methodology on the subject of the 70:20:10 model which to his credit, seems to be the most comprehensive explanation. In spite of the lack of empirical data, the 70:20:10 model in its simplicity has already been adopted by several South African and Global organisations.
So, what is the 70:20:10 learning model?
70: Refers to the 70% of the workforce who learn through experience and practice
20: Refers to the 20% of the workforce who are engaged in conversations with people who know the job, establishing networks and focussing on asking the right people
10: Refers to the 10% of the workforce who are engaged in structured formal learning, e.g. classroom courses/workshops
Learning professionals will admit that the effectiveness and efficacy of structured learning has diminished drastically over time as the workplace has evolved. It has been quite apparent that in an economic downturn, structured learning, like classroom-based courses, is the first to go. The risk of adopting a process that relegates formal learning to just 10% is that the foundation phase of development is overlooked. This also means that a lot more is riding on the ability of all employees, regardless of their learning styles on becoming competent through learning from others.
Businesses are constantly evolving into dynamic, creative entities pursuing any and all means of achieving the highest levels of effectiveness and efficiency in achieving its business strategies. So it makes some sense why organisations would consider the 70:20:10 learning model, especially since it addresses the 2 key issues facing organisations, cost and timeliness.
C. Jenning lists the Costs associated with structured, formal learning as: absent staff; technology & equipment, facilitators, travel expenses and Timeliness with reference to access to experts; finding the relevant knowledge; being able to commit to memory and apply knowledge. As Charles Jennings states, “Obviously business expects people to learn at the speed of business”.
As a result for this need for speed, the challenge of achieving the 70% goal (learning through experience & practice) is not feasible. There is very little chance that senior level executives and managers have sufficient time in the day to enable experiential and practical learning. Learning is very much a personal endeavour. We manage our own learning and all managers can do is to provide the necessary channels, opportunities and resources.
Research has definitely proven that experiential learning is the most effective way to increase knowledge and create a lasting change in behaviour.
So the question arises….how do we solve the challenges affecting the implementation of the 70:20:10 model?
Business Simulations have proven to be most effective active learning methodology which can certainly address some of the challenges of achieving the 70% goal and perhaps the 20% goal as well. A survey conducted by Faria (1998) found that 97.5% of accredited business schools include simulation-based training in their curriculum. 65% use simulation-based training in business policy courses, 63% in marketing, and 44% in management.
Have you ever tried explaining complex business and financial concepts to your employees? If so, you’ll know that it’s difficult because many of the realism and experience of business decision- making can be lost in translation. Many organisations face the challenge of conveying the understanding of their strategy to the workforce, which in itself is an impossible task. Employees need to construct their own understanding of the strategy and how it relates to their particular role. A lack of understanding of the organisation’s strategy will result in the lack of knowledge of the inter-relationship between strategic execution and business results.
So, what are business simulations?
Business simulations are activity-based learning intervention designed to provide a structured, risk-free environment in which to learn, apply and improve skills while engaging in strategic business decision-making. As a consequence of the simulation, participants will understand the impact of their actions and the inter-relationships between the various functional divisions within an organisation. There are many references to the simulation ‘game’ which can be construed as a source of entertainment or diversion. It is important that business simulations are positioned where the participants totally immerse themselves in the ‘simulation business’ to create the reality and sharpen their propensity to learn.
A distinctive feature of business simulations is the superior design, which enables the participants to build knowledge and experience over a short period of time, which would normally take years to acquire. Most effective business simulations place participants in team-based setting where they lead their business by making strategic, leadership, operational and financial decisions.
What’s in it for the participants?
Effectively developed and facilitated business simulations allow participants to experience the rewards of effective strategic & tactical decision-making, rigorous market and financial analysis and successful teamwork.
These types of simulations build organizational alignment on the key strategic imperatives of an organization. However critical these focus areas may be, the last thing you want to do is to subject a group of participants to another intense classroom intervention.
It is therefore imperative to enable experiential learning by providing participants with an incredibly engaging, challenging and fun experience, while equipping them with the skills and knowledge they need to succeed in the real-world.
There is no doubt that learning organisations need to create competence at the speed at which the business evolves. Business simulations have the benefit of enabling participants to immediately see the cause and effect relationship between business decisions and results. They are able to test strategies and tactics in a competitive and dynamic environment.
Participants are also able to experience the challenges and benefits of collaboration in high-pressure settings. To further enhance their learning experience, participants are placed in team-based settings where individuals are encouraged to take on functional roles in which they have little or no experience. The outcome is that they acquire a more realistic perception of how other roles function within the business, in addition to having an eagle’s eye view of the organization as whole.
Interacting with peers can be one of the most engaging and effective aspects of a successful learning experience. This is clearly evident in the 70:20:10 model, where 20% of the knowledge and skills is acquired through conversations with the right people with the right knowledge. Encouraging both individual and team learning in a safe ‘learning laboratory’ achieves this objective. What better learning opportunity than to allow your employees the opportunity to explore strategies, acquire skills and utilise new frameworks that prepare them to lead your organization into the future?
Business Simulations allow the participants the freedom to freely experiment with strategies and policies without jeopardizing the organization. As a result they are able to reflect, analyze and discuss their decisions, which unfortunately in the real world, the value of which will be diminished by time constraints.
What factors should you consider when deciding on business simulations?
There are many types of business simulations and games out there. A number of them are offered online as well as classroom-based. In accordance with the 70:20:10 learning and development model, organisations are driven by the need to develop their workforce in the most effective but efficient way. However, individuals need to take ownership of their learning and all that you can do is to facilitate, support and help make it happen.
In order to ensure that your business objectives are met, careful consideration of the business simulation partner you select is of paramount importance.
- Select a business simulation partner who has the credibility (100% successfully run business simulations), expertise in various industries both nationally and globally and the experience to support the achievement of your goals.
- Ensure that the business simulation platform is a robust and stable one, designed with maximum flexibility and ease of customization and compatible with other technology platforms. Thorough testing and debugging of the system should be done prior to a pilot programme being run, so that no manual adjustments are necessary.
- There should be on offer; core programmes that meet the client’s needs cost-effectively and efficiently, as well as the option to customize as per your specific needs with a tailored pricing strategy.
- Focus on the provider who looks at experiential learning from a business perspective, rather than a training perspective. This will ensure that the learning outcomes affect your bottom-line results. However, also ensure that there is a balance in terms of the approach to hard skills (technical and business acumen) and soft skills (interpersonal and leadership behaviors).
To achieve your business goals, you depend on the competence and the action of impassioned individuals within your workforce. By allowing them the scope to develop themselves, you ensure they have the ability to develop your organisation. You increase critical skills and knowledge and also improve productivity, retention and satisfaction, which in turn drive your business to greater heights.