Business Simulation Archives

Action Learning and Business Simulations

Why Action Learning is Essential for Teaching Today’s Students

Increasing demands on instructors and pressure on tertiary Institutions to provide work-ready graduates, instructors are looking for new ways to engage their students as a means of ensuring success.

What is action learning?

Action learning is not one specific teaching method, but rather a philosophy and an approach which encourages action within a team environment where learning is every participant’s job. All action learning approaches are philosophically rooted in theories of learning from experience, as practiced collaboratively with others through some form of action research.

Education scholars agree upon three principles that form the foundation of any action learning course:

  1. Learning is acquired through action and dedication to the task at hand.
  2. Knowledge creation and utilization are collective activities, wherein, learning becomes everyone’s job.
  3. Users demonstrate a learning-to-learn aptitude, allowing them to question the underlying assumptions of practice.

Why action learning?

In the modern teaching environment, more is needed from teaching faculty in communicating and delivering course content. Socratic and other traditional teaching methods are not engaging students as effectively as they once did. Students now need to be actively involved in their learning, rather than passively participating.

Employing action learning principles within a course enables students to resolve and take action on real problems in real time, and learning while doing so. Participants become engaged within the learning process and learn transferrable skills in the process. Further, by encouraging learning through doing within and among groups, an individual participant realises that their viewpoint is just that – it is no more than a hypothesis. Through this learning outcome, the participant reaches a reflective state. These reflective states are arguably where significant learning is achieved through challenging assumptions and preconceptions about business.

It is thought that action learning also increases an individual’s capacity to collaborate. By being stimulated intellectually by their peers within this environment, they gain access to other people’s worldviews, therefore, enabling them to challenge their own views and behaviours, providing further opportunities for growth. The team-based nature of action learning often encourages new theories or ideas which may not have been reached through traditional teaching methods.

The outcomes from action learning produce greater self-efficacy along with heightened states of autonomy, meaning and responsibility. Authors agree that action learning is the first step for participants in a journey toward greater self-insight, greater capacity to learn from experience, and greater awareness of the political and cultural dimensions of an organization. For organizations, it is often a first step toward linking individual learning with systemic learning and change (Marsick & O’Neil, 1999).

What does action learning look like?

A typical action learning program covers aspects of traditional learning models, where a series of presentations might be given on a specific theory or topic, and then builds on this through applying prior and new knowledge to a live project. This environment then provides intrinsic feedback from the work itself, rather than from an external authority (e.g. graded assignments).

Throughout the course, participants continue to work on the project with assistance from other participants, as well as from qualified facilitators, who help foster an understanding of the work as well as the theories taught. The facilitator in each team is critical to change agency. It is important for them to observe teams during meetings and provide feedback to individual members and/or the team. However, the facilitator in this scenario should not become a supervisor, rather, only to encourage free discussion, reflection, thought and critical analysis.

Assessing action learning

Measurement may require key performance indicators that are not typically used within traditional teaching methods, since individuals and teams create their own workplace reality through ongoing reflection. However, conventional methods for assessment (survey and evaluation/examination) can still be employed based on the learning outcomes of the training or course. Inman and Vernon (1997)  suggest the use of narratives and dialogical approaches to assessments, such as scenarios, to embed learning through consensus-building processes.

What forms can action learning take?

One of the more common forms of action learning within higher education is business simulators. These are employed alongside traditional lectures as a teaching or learning resource where students form a management team to run their own virtual company. To succeed in action learning participants must apply their learned knowledge to a live and responsive project (their simulated company). This environment poses multiple different situations and problems that students must address over the course of the simulation.

As the simulation progresses participants receive both intrinsic and extrinsic feedback from the simulation itself, for example Shareholder Value (in MikesBikes IntroMikesBikes Advanced) and Marketing Contribution (in Music2Go Marketing & AdSim Advertising), and from their group. Business simulations also provide the perfect opportunity to integrate reflective assignments to explore the scenario and identify what students take away from the action learning exercise.

Throughout this process, instructors and professors (which under this philosophy are the learning facilitators), work alongside students to facilitate group discussion. This can be done in class, workshops or group meetings.

Contact us if you would like more information on simulations and action learning, or access to a free demo account for one of our simulations.

 

Engaging Millennials in Business Simulations with Gamification

Gamification: Engaging Millennials in Business Courses through Business Simulations

The term gamification is a relatively recent addition to the scholarly vernacular. In fact, the first documented use of the term doesn’t appear until 2008 (Detering, Dixon, Khaled, & Nacke, 2011). While there have been a number of definitions put forward, most publications agree on a general definition being the use of game elements and design in a non-game setting (Seaborn & Fels, 2015). The broad use of games among members of the millennial generation creates an opportunity for increasing student engagement and motivation in traditionally non-game environments, such as a business school. Given this, educators are increasingly using gamification techniques to increase student engagement (Seaborn & Fels, 2015). These include the use of advanced business simulations. Gamification applied to these kinds of simulations can increase engagement, motivation, targeted learning outcomes, critical thinking skills and cognitive reasoning.

Gamification includes a variety of methods, the most basic of which is the use of game elements to create a gamified experience. Game elements include:

  1. immediate feedback on performance through the use of badges and icons,
  2. leaderboards,
  3. awards,
  4. interaction with other players.

Research indicates that the use of these game elements can result in an increase in engagement and motivation (Thom, Millen, & DiMicco, 2012). Other implementations of gamification, such as business simulations, appear to have longer lasting positive effects on not only participation but more so on desired learning outcomes, especially within an educational setting.

The purpose of educational business simulations, at their core, is to create an experiential learning environment to improve the learning outcomes and student success. Through a gamification lens, business simulations do that. Each of Smartsims’ Business Simulations easily tick off those requirements:

1. Immediate Feedback on Performance through Icons

Smartsims MikesBikes Icons Gamification

The above is a picture of MikesBikes Introduction interface.

2. Leaderboards

Music2Go Marketing Leaderboard Gamification

The above is a picture of Music2Go’s class specific leaderboard (note we also have a Hall of Fame tracking the performance of teams throughout the world).

3. Awards

Smartsims Business Simulations are strong believers in rewarding excellence. Every year the Smartsims team holds the MikesBikes World Championships to find the ‘best of the best’ and award the winning team. Further, the students who achieve top of their class or enter into the Hall of Fame are given notoriety within our website through an article/interview as well as the Worldwide Leaderboard.

4. Interaction with Other Players

Interaction among students using Mikesbikes

MikesBikes encourage interaction with other plays both directly and indirectly. Often students can form the ‘management team’ of their firm where they interact directly with each other to enter the important decisions of their team. Students will also be competing directly against other teams within their course to achieve the highest Shareholder Value (one of the main KPIs within MikesBikes).

Gamification and Business Simulations

Gamification can be viewed as an instrument within the toolbox of experiential learning, and as such, can be used to enhance desired learning outcomes. These desired learning outcomes include the development of critical thinking skills, increased motivation, and greater cognitive ability (Lovelace, Eggers, & Dyck, 2016). Rousseau (2012) describes the critical thinking process as “involving questioning assumptions, evaluating evidence, and testing the logic of ideas, proposals and courses of actions” (p. 13). An advanced business simulation such as MikesBikes includes rounds of play in which assumptions are drawn, and data is analyzed before decisions are made. The start of each new round gives the student an opportunity to reflect on the outcomes of previous decisions, and use that knowledge to reanalyze data and make new inferences. Ultimately, through the use of simulation students must go through the various stages of critical thinking. Furthermore, they simulate problems that build over time and become more involved as the simulation advances. This increases student knowledge and cognitive reasoning (Collins & Halverson as cited in D.J., Beedle, & Rouse, 2014).

Gamification is a relatively new and continually evolving application and can range in impact. Educational business simulations, such as MikesBikes, can use a variety of gamification techniques to enhance the learning experience, as well as increasing student engagement and motivation. This is particularly important in the modern educational environment and the challenges of engaging the millennial generation. However, the most attractive outcome in the combination of gamification and simulation is the development of critical thinking skills and cognitive reasoning, both of which are very difficult to achieve in a typical learning environment.

 

 

References

Cadotte, E. (2016). Creating Value in Marketing and Business Simulations: An Author’s Viewpoint. Journal of Marketing Education , 38 (2), 119-129.

Cheong, C., Filippou, J., & Cheon, F. (2014). Towards the Gamification of Learning: Investigating Student Perceptions of Game Elements. Journal of Information Systems Education , 25 (3), 223 – 244.

D.J., F., Beedle, J., & Rouse, S. (2014). Gamification: A Study of Business Teacher Educators’ Knowledge of, Attitudes Towards and Experiences with the Gamification of Activities in the Classroom. The Journal of Research in Business Education , 56.1, 1-16.

Detering, S., Dixon, D., Khaled, R., & Nacke, L. (2011). From Game Design Elements to Gamefulness: Defining “Gamification”. Proceedings of the 15th international academic MindTrek conference: Envisioning future media environments (pp. 9-15). Tampere: ACM.

Lawley, E. (2012, July – August). Games as an Alternative Lens for Design. Interactions , 18 – 19.

Lovelace, K., Eggers, F., & Dyck, L. (2016). I Do and I Understand: Assessing the Utility of Web-Based Management Simulations to Develop Critical Thinking Skills. Academy of Management Learning and Education , 15 (1), 100-121.

Paharia, R. (2012, July – August). Gamification Means Amplifying Intrinsic Value. Interactions , 17.

Rousseau, D. (2012). Envisioning Evidence-Based Management. Oxford Handbook of Evidence Based Management , 3-24.

Seaborn, K., & Fels, D. (2015). Gamification in Theory and Action: A Survey. International Journal of Human-Computer Studies , 14-31.

Thom, J., Millen, D., & DiMicco, J. (2012). Removing Gamification from an Enterprise SNS. Proceedings of the acm 2012 conference on computer supported cooperative work. , 1067-1070.

Dan Bielinski Madison Area Technical College

MikesBikes in an Introduction to Business Course

Dan Bielinski Madison Area Technical College
The article below is written by Dan Bielinski, business instructor at Madison Area Technical College.

As a relatively new Business Management Instructor (in my third year) after a nearly 30 year career in industry and consulting, I have found MikesBikes Introduction an extremely helpful tool for teaching real-world business concepts. In the spirit of sharing among educators to benefit students, I am privileged to discuss some of the approaches that have worked for me.

We utilize the MikesBikes Single-Player in our Intro to Business Course. Students work in teams and compete against the computer. There are two practices I have found very effective:

1. I cover course material on Strategy, Marketing (the 4 P’s), Operations and Finance, primarily through case studies and other active learning techniques. I then use MikesBikes and help students “connect the dots” and apply these concepts in the simulation.

Both direct student feedback, and the kinds of questions they start to ask, tell me the simulation is taking student understanding to a deeper level. Much like moving toward case studies and away from lectures deepened learning, the simulation took learning provided by the case studies to a deeper level.

2. I have students work in teams of three. Each Team designates a VP-Sales & Marketing, a VP- Operations, and a VP-Finance. Each of their “bonuses” is based 50% on maximizing a specific departmental metric, and 50% on Shareholder Value growth. All three have to agree on all decisions.

The bonuses take the form of hefty extra credit points. For example, the VP-Sales with the best sales growth rate wins extra credit points; similar for the other positions. However, EACH member of the Team with the highest Shareholder Value wins extra credit points.

This simulates the dynamic that happens in actual businesses between Departmental Managers. It gets pretty real— in one case, a student was still yelling at a teammate 20 minutes after the simulation ended—“You hosed us; all you cared about was your Department.”

Last semester, we started using the MikesBikes Multi-Player in our Capstone Leadership Course. Students still work in teams, but now compete directly against each other to maximize shareholder value. The experience exceeded my high expectations. Key learnings we were able to drive home included:

  • The business mindset of always continually looking for an advantage or edge. Since all Teams start out identically, if they all follow similar strategies, no one will stand out. However, since the reports allow you to figure out- and copy, others’ strategies, you must continually look for a new angle.We connect that to running your Department—for example, if you run a Customer Service Team, how can you give your Sales force “something to sell” that your counterparts are not doing. And since your counterparts can probably copy you if it works, are you thinking about the next improvement? Etc.
  • Since all Teams start out with identical positions and decisions to make, and the end results vary wildly, the core source of differences in results is the members of each Team. This leads to a discussion of team makeup— complementary skill sets, depth of understanding of the “business”, ability to work together, etc. It is the most powerful way I have seen to teach the importance of teamwork.This easily transitions into how you build your department’s team— hiring into your weaknesses, knowing that both deep skill sets and ability to be a team player are vital, etc.
  • The simulation allows us to help students develop a broader business perspective, and to drive home the importance of such a perspective. For example, most companies do not want a marketing expert running Marketing; they want a business person who has deep knowledge of marketing. Same for Operations, Finance, and so on. Being able to “see the big picture” and have “your world” be bigger than just your department is vital.

I looked at other simulation packages, and concluded that MikesBikes had an optimal level of complexity. It is not simplistic-all the lessons above can be taught, yet it is not so complex that it takes students a long time to learn. I was able to do a self-paced tutorial of a five year simulation using a screencast (35 minutes total run time), that enabled students to learn the basics on their own outside of class (using the online version of MikesBikes).

The service and support from Smartsims has been absolutely exceptional- and I say this as a former Customer Service VP. I was comfortable recommending to our Dean that we expand our relationship to the Multi-Player only because of the 18 prior months of phenomenal support.

What Do Students Think Of MikesBikes?

The positive experiences of the students serve as the best testimony for our business simulations. This case study on University of Auckland students exemplifies how MikesBikes provides a unique and practical learning experience. Students Jennifer, Jude and Joel share their experiences using business simulations.

Start of the course

The three students were asked about their initial thoughts before starting their MikesBikes journey. On the outset, the students described their excitement towards running a business in a simulated environment; something that none of them have done before. Jennifer expressed her anxieties towards her grades being dependent on her business performance. On the other hand, Jude and Joel were excited for this new learning experience.

During the course

During the course, the students were asked about their thoughts on MikesBikes. Overall, they developed a new-found confidence in the business simulation. Jennifer was thrilled that she’s able to manage her own company in a risk-free environment. Joel also spoke about how it motivated him to learn more about business management.

End of the course

At the end of the course, they were asked to reflect on their learning experience. Overall, having the ability to develop and test their business strategies in real-time provided them with the greatest learning experience. Joel described how working in teams made him learn a great deal about himself. While Jude and Jennifer described how the simulation encourages students to identify their strengths and weaknesses all within a safe and positive environment.

In summary, the students’ experience with the MikesBikes simulation taught them valuable lessons about business and of themselves. They started the course excited but understandably unsure of how it may benefit their learning. However, by the end of the course, it became clear how this experiential learning method benefits students in many ways. Auckland University students are prepared and confident to enter the workforce after completing the MikesBikes simulation.

The Benefits of Business Simulations to Students & Instructors

What are Business Simulations?

What are the Benefits & Learning Outcomes to Students using a Business Simulation?

Why are Business Simulators important to Instructors & Professors Teaching a Business Course?
Continue reading The Benefits of Business Simulations to Students & Instructors

How Business Simulations Give Students the Leading Edge in Job Interviews & the Workplace

In this video, Dr. Darl Kolb explains how business simulations give students confidence, which affords them a leading edge in job interviews and in the workplace. Continue reading How Business Simulations Give Students the Leading Edge in Job Interviews & the Workplace

Image with SB101 text on it.

MikesBikes at Quinnipiac University

For decades, business schools have compartmentalized instruction in the various core components – management, accounting, finance and marketing – while rarely linking one to the other. Quinnipiac University have recognized the value of integrating those core components to augment students’ knowledge and understanding of business practices. Continue reading MikesBikes at Quinnipiac University