Blog Posts

So much time, energy, analysis and thought go into building a strategy to ensure your organization grows and thrives. It’s your role as a C-suite leader to set a vision and ensure a broad enough perspective. It’s the organization’s job to take that vision – and figure out how to get it done. Isn’t that what your functional leaders and their teams are there to do?

The high failure rate of strategy implementations suggests that in fact this is not a recipe for success. And further, one of the 3 leading reasons why strategy implementations fail is because company leaders place the burden on employees to figure out for themselves how to make the strategy actionable, rather than engage them to figure it out together.

By their nature, long-term strategies are necessarily high level, as painting a multi-year vision for a complex organization to grow, evolve, and thrive requires a certain altitude and necessary lack of details. Most C-suites leave it to the next levels of leadership to “connect the dots,” and make it real for their teams. This is often done through a “cascade” process of breaking down the activities required at each level of the organization to execute on the strategy, communicating those activities and then measuring progress.

The challenge is that the communication, which focuses on broadcasting a mandated case for change, typically flows in one direction. And that’s a big mistake for two reasons:

1. It’s a long way down. The standard approach to communicating down through the organization is like the world’s largest game of telephone, but with a fairly weak signal to start. That initial message about what to do differently is often as high level as a managers’ script with talking points, which poses a real challenge to the next layer of managers, who are left to translate abstract concepts into practical, real-world changes. They often feel accountable for, but unprepared to answer, inevitable questions from their teams yet also feel ill equipped to take action to figure things out.
2. It misses out on all the important intelligence. One way communication down in the organization overlooks the people closest to the customer and the actual work. These are the people who are most likely to see potential gaps and risks in the new strategy. But these front-line workers, along with most of the rest of the organization, don’t see the strategy until after it has been “approved,” at which point the goal isn’t to get their feedback but rather to drive execution and accelerate results. By the time the strategy is cascaded out to the last person in the field or on the floor, it’s far too late to act on what they know.

The common thread is that leaders are waiting on employees throughout the chain of command to interpret and figure out what the new strategy means on a day-to-day basis, without first having brought them into a shared conversation up front. Not given a chance to wrestle with the trade-offs, test the assumptions, and participate in the dialogue, even the most enthusiastic employees are going to have a hard time figuring out what the strategic shifts mean to them personally, let alone how to execute them. Note that this is not about asking all 50,000 people in your organization to weigh in on what the strategy should be. Instead, it is about setting the direction, and then engaging them in the process to understand what the new direction means and how it translates for them. The key is creating the right environment to engage the organization most effectively.

³ ways to bring your leaders and teams into making strategy actionable

1. Make the new strategy real and tangible, as strategies must be experienced to be truly understood. When it comes to engaging people around a new strategy, it’s important to remember that a change in information does not mean a change in behavior. People don’t act until they understand what will be different in their day-to-day work. Senior leaders who can take the conceptual and make it concrete enable people at all levels in the organization to see themselves in the strategy and feel like active players in making it real.[1] Until you take people for a test drive to see and feel what actually changes about their job, you will have a challenging time making the strategy clear.

Take for example a financial services company who made a commitment to double the number of customers in three years by reaching entirely new customer groups with different needs. Frustratingly, efforts had stalled as the prevailing mindset amongst the troops was essentially “wait until someone tells us what to do.” We partnered with them to make the aspiration real and personal for people in the organization. How? For the operations team, for instance, achieving the goal meant that they would be servicing twice as many customers in just one year. We built a visceral experience for the team to see what it would take to handle that many new customers. This way, they could consider the various scenarios of dealing with such a huge increase and debate the most critical investments and process changes. Most importantly, because the group built the new plan together, they were able to move significantly faster in implementation.

2. Build two-way communication at scale. Instead of broadcasting goals, project plans, and checklists, intentionally build two-way communication into your campaign for strategy alignment. This approach will help leaders source ideas and input from those closest to customers. But it will also help those on the ground feel that they are active members on the front lines of the push forward (because they actually are).

A telecommunications company created a retail store strategy around selling more, higher margin products such as accessories. The company told the retail managers to prioritize those sales, but revenues barely budged. The strategy didn’t catch fire until the company asked the managers to become deeply involved in determining the tactics and actions that would make a difference. Once the retail side got fully engaged, sales of accessories easily jumped 20%.

3. Expect all leaders to be leaders of the new direction. The responsibility for revamping your organization shouldn’t fall on the shoulders of a small number of champions. The scale and pace of change for most organizations requires that all managers, from the C-suite to the middle ranks to the factory floor and retail aisle, see change leadership as their first job and have a change-ready mindset. After all, it’s usually the people closest to the work who have the best ideas about how to change it. The job of a change leader is to know how to engage their teams in co-creating the future together so that they can collaborate to solve problems in new ways. All leaders, not just a select few, have to bring a change-ready mindset to the task, so that they can maintain the motivation to bring their teams with them as they lead the charge.

Our work with thousands of leaders and organizations has revealed a core disconnect that can undermine even the best of strategies in the most focused of companies. The disconnect is both simple: Strategy creation and strategy execution are seen as two separate activities, rather than what they should be—an integrated, iterative process that generates a new reality over time for the company and for the people in it. And one of the 3 most important ways to make that process real is by more deeply engaging the people who will have to implement that strategy, and to bring them into the process, and keep them there, from the earliest days to the very end. (Check out this white paper to find out more about the other two.) Start by building engagement from the very beginning.  You’ll be well on your way to making your strategy actionable.

‍[1] Oreg, S., Vakola, M., & Armenakis, A. (2011). Change Recipients’ Reactions to Organizational Change: A 60-Year Review of Quantitative Studies. The Journal of Applied Behavioral Science, 47(4), 461–524.

In today's fast-changing business environment, excelling in Revenue Growth Management (RGM) is essential for Commercial Leaders aiming to boost revenue and profit, both now and in the future.

Unlike traditional methods that confine RGM to pricing actions, forward-looking Commercial Leaders recognize that activating a holistic, end-to-end RGM strategy that is consumer/shopper focused and customer-back, leads to more significant growth and allows leaders and teams to not only anticipate, but actively influence consumer demand and customer needs.

Historically, Revenue Growth Management (RGM) has been approached as a temporary and reactionary project, which was typically led by external experts in response to inflationary markets. This limited approach confined the benefits to a small part of the business and focused on short-term results, rather than embedding RGM as an ongoing, fundamental aspect of business strategy that could deliver sustained, long-term growth.

Today, mature RGM organizations treat RGM strategy and execution much differently, positioning the actions at the center of their strategic operations, embedding capabilities deeply within their organizational processes and ways of working. This transformation is not just procedural but is a shift that forces RGM strategy, tactics, and mindset into every action and function of the business.‍

Strategic integration of RGM at scale: A roadmap for success

1. Build strong in-house expertise: To see the scaled benefits of RGM, develop strong capabilities within your commercial teams and intermediate understanding of your cross-functional teams. When your leaders and teams fully grasp RGM tactics and mindsets, it creates scaled-impact that can be sustained without external reliance.
2. Encourage cross-functional collaboration: The effectiveness of RGM strategy and execution is only fully realized when it involves a fully cross-functional team. Promoting collaboration between sales, marketing, finance, R&D, and the supply chain enriches insights, strategy and execution feasibility, and organizational success.
3. Integrate RGM strategy into key business processes: By connecting RGM directly to critical operations such as budgeting and strategic planning, you ensure that RGM principles are woven into the fabric of annual planning instead of being treated as a one-time project. This integration influences everyday decisions and guides long-term business strategies.
4. Overcome implementation challenges with effective change management: Embracing a robust RGM approach involves substantial change and a shift in traditional revenue growth mindsets. Address these challenges through strong change management practices, aligning team incentives with new strategies and providing clear, successful examples of RGM in action to inspire and motivate your teams.

The competitive edge of building RGM capability across the organization:

1. Encouraging innovation from Consumer-Back: It’s no surprise that RGM should be activated starting with consumer and shopper insights. When truly building a strategy from the consumer-back, you build a mindset and process that is ripe for innovation. This helps your company stay competitive and lead industry trends and demands, instead of reacting.
2. Aligned decision-making for the short and long-term: A thorough RGM strategy speeds up and improves the day-to-day decision-making process of consumer and customer facing commercial teams. It helps ensure that decisions—like setting pricing strategies, choosing promotional activities, or allocating resources—are aligned with the market’s immediate needs and long-term goals for the category.
3. Boosting market responsiveness: In today’s volatile business climate, the ability to swiftly adapt to market changes is invaluable. Decentralizing RGM capabilities enables cross-functional local teams to be agile to market shifts in strategic ways, turning potential challenges into opportunities, while still staying aligned to the longer-term market objectives.
4. Cultivate a results-driven culture: Building RGM roles across the organization allows for greater ownership and accountability to improve revenue and ultimately grow market share. This means a greater population has a direct role to play in driving business performance and are responsible for keeping an external pulse on consumers, shoppers, and customers.

Implementing a cohesive RGM strategy, instilling the right mindsets, and providing the leaders and teams with the tools and processes needed to be successful, is no small feat. However, the revenue, profit, and market share impact can be substantial when an aligned RGM strategy is deployed at scale. This strategic commitment positions your company for enduring success and a powerful competitive advantage in today’s dynamic consumer, shopper, and customer landscape.

Igniting lasting culture change

In the dynamic landscape of modern business, one reality remains constant: organizational culture is the foundation of success. It's the driving force that shapes behaviors, sets expectations, and builds the brand from within. When you recognize that your culture needs transformation, how you navigate that change becomes a crucial factor in determining your overall success as an organization.Embarking on culture change can feel like navigating uncharted waters. Traditionally, leaders have relied on top-down mandates to shift culture, but these often lead to only temporary behavior changes. True cultural transformation requires more than directives—it demands a movement. To embed lasting change, we must harness the collective energy, passion, and innovation of the entire team, creating a unified drive towards a shared vision.

Culture change: shaping a new vision

Before diving into cultural transformation, we need to demystify what culture change truly means. Organizational culture encompasses the values, beliefs, and practices that guide daily activities, interactions, and decision-making processes.When it comes to driving meaningful change—whether due to strategic realignment, merging identities, or sparking innovation—it involves rethinking these foundational elements. This process goes beyond introducing new slogans or redesigning office spaces; it's about fundamentally reprogramming collective thought and actions to align with a fresh, shared vision.

The pitfalls of mandates: Rethinking culture change

Historically, leaders have been viewed as the primary drivers of culture, using mandates to command change. A top-down directive approach for changes like policy revisions or new performance targets may seem intuitive and straightforward.However, mandates have significant limitations that hinder sustainable cultural change. They rarely reach the core of employee sentiment and engagement, resulting in mere compliance rather than genuine buy-in. Without deeper ideological shifts, mandated changes can leave employees disillusioned and resistant, ready to revert to old habits at the first opportunity. True cultural transformation requires more than top-down directives; it demands a collective, inclusive effort that fosters authentic commitment and long-lasting change.

The power of collective action in change and transformation

Successful culture change harnesses the power of collective action. Using this approach, leaders act as catalysts, igniting passion and purpose within their teams. Culture change here becomes a movement that inspires connection and enthusiasm, spreading across the organization through a groundswell of support.By empowering every level of the organization to contribute to the cultural narrative, movements create stakeholders instead of spectators. When everyone is a stakeholder, the change is owned, honored, and sustained.

Culture change: The blueprint for collective success

To drive effective cultural change, leaders must act with clear intention and include everyone in the process. Every step should be deliberate and foster a team spirit that moves the organization forward.

Leadership commitment and buy-in

Leadership guides cultural change. Without a united front, the effort loses strength with mixed messages and indifferent actions. Leaders must fully commit to the change they aim to inspire.

Engaging employees at all levels

Cultural change involves everyone. Participation should flow from the boardroom to the break room. Create spaces for voices to be heard, ideas to be shared, and unity to grow. By involving everyone, your organization will experience the power of shared purpose.

Creating a shared vision and purpose

Cultural change needs a shared purpose. Your team must understand not just what is changing but why it is changing. Your vision should guide every action and decision, aligning with a purpose that resonates with everyone.

Empowering change agents

Identify and empower change agents within your organization. They will lead by example, spreading enthusiasm and driving change in their areas, ensuring the effort is a collective one.

Fostering open communication and feedback: The oxygen of the movement

Cultural change thrives on open communication. Transparent and ongoing dialogue is essential. It must be a two-way exchange, supporting growth and adaptability throughout the organization.

Embracing change resistance

Resistance to change is inevitable, but it is not insurmountable. Acknowledge the challenges that lay ahead and address them proactively to fortify your movement's resolve.

Leveraging resistance

Resistance often stems from fear, uncertainty, or miscommunication. Engage with skeptics empathetically, understand their concerns, and address them with transparency and facts. This approach transforms resistance into valuable insights.

Navigating organizational politics

Cultural change involves navigating organizational politics, which requires strategic finesse. Be aware of these dynamics, ensuring your initiative serves the greater good and isn't derailed by competing interests.

Managing change fatigue

Cultural change is a marathon, not a sprint, and fatigue can set in. Pace your efforts, celebrate small victories, and ensure your team has the support and resources needed to sustain the change journey. This helps maintain momentum and commitment.

Measuring and sustaining culture change

To ensure the longevity of your cultural change efforts, it's crucial to measure their impact and embed the new culture into your organization's core.

Identifying key metrics

Define the metrics that will gauge the health and progression of your cultural shift. These indicators guide your strategy, ensuring the change stays on track.

Continuous learning and improvement

Cultural change is an ongoing process. Foster a learning culture that thrives on adaptability, turning your organization into a model for progressive and powerful culture change.

Embedding culture change into daily practices

Cultural change becomes permanent when it's woven into the daily actions and interactions of your organization. Ensure policies and practices align with the new cultural norms, making the change an integral part of your operations.

In the expansive dialogue surrounding AI systems, biases often take center stage, typically those woven into the fabric of the machines by their human creators.

Yet, an intriguing facet emerges when evaluating the biases rooted within humans, which are illuminated by the presence of AI. Recently, Yunhao Zhang and Renée Gosline of MIT embarked on an exploration of this phenomenon, probing how the identity of the author—be it human or AI—affects the perceived quality and persuasiveness of content. The verdict? Human Favoritism.

Human favoritism

The experiment:

Zhang and Gosline engineered a series of experiments comprising four distinct conditions to unravel the impact of authorship on content perception:

• Content crafted exclusively by human experts.
• Content generated solely by AI.
• Content initially created by AI, followed by human refinement.
• Content initially authored by humans, subsequently polished by AI.

In instances where evaluators remained unaware of the authorship (a form of blind evaluation), AI-generated content garnered commendable ratings. However, upon disclosure of the four experimental conditions, a discernible uptick surfaced in the perceived quality and persuasiveness of content intertwined with human involvement.

The insight:

Human favoritism, characterized by a cognitive bias, manifests prominently when individuals are cognizant of human participation in content creation. This predisposition extends its influence beyond evaluators, shaping the perceptions of employees and customers alike. The mere presence of human input infuses content with a heightened sense of value and credibility.

Charting the path forward:

1. Transparency and disclosure: Embrace transparency by openly disclosing the involvement of AI in content creation. This fosters trust and informs consumers, employees, and stakeholders about the collaborative nature of content production.
2. Blind evaluations: Implement blind evaluation procedures where possible to mitigate the influence of human favoritism. By withholding information about the authorship of content during assessment, evaluators can provide more objective judgments.
3. Diverse authorship: Promote diversity in content creation teams, encompassing both human experts and AI systems. By leveraging a diverse array of perspectives, biases can be minimized, resulting in more inclusive and balanced content.
4. Continuous education: Educate stakeholders about the capabilities and limitations of AI systems. By enhancing understanding and awareness, individuals can make more informed judgments, reducing the impact of biases on content perception.

Navigating the unfolding narrative in the Iron Age of AI has revealed unseen aspects of human behavior. Addressing biases entrenched in AI-generated content demands a candid acknowledgment of human favoritism. Transparency emerges as the critical instrument for navigating this intricate landscape, requiring humans to confront uncomfortable realities to ensure that technological progress is both positive and equitable for people and machines.

If the pandemic and the ensuing few years have taught us nothing else, it is the fact that we are in a world of terminal turmoil.

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Change comes fast and often. Black swans lurk around every corner. Yet many companies are still executing their strategic planning like it’s 1985. The new unpredictable normal calls for a different approach. Historically, strategy creation was a long, linear process with a singular plan to win. This method worked well when product lifecycles were lengthy and technology-fueled disruptions were infrequent. The challenge with that now is that when conditions change—and they inevitably will—an organization wed to a singular plan is left paralyzed without an alternative. Or they overcompensate by trying many different things, reacting in the moment. On either extreme, a few things happen that rapidly derail growth and progress.  Some companies march toward their long-term plan ignoring signals that it’s time to shift—like lemmings off a cliff, they are unable to save themselves. Polaroid, Blockbuster, and Blackberry are unfortunate examples.  Then there are the companies that adopt a rapid reactive mode, trying to quickly pivot, without a future-focused view as their North Star. These organizations suffer from shiny ball syndrome, chasing something new with every market signal. They can’t gain any solid ground and they exhaust themselves in the process.  

Walking the line requires “both/and” leadership: 3 ways to make it real

The middle and most optimal course is to hold on to the tension of creating energy and excitement in setting a compelling long-term vision while also working with all the teams to figure out how to realize that goal. The “how” is the hard task and will require leaders—and their teams—to do their best thinking and most challenging work.  Here is what to do differently to bring those two tensions together.

1. Deliberately broaden your approach and strategic aperture. When thinking through strategy, the best organizations look beyond the common or expected path, seeking not just to rely on a given Total Addressable Market or on packaged industry trends created by an in-house strategy team. To be sure, market size is important, but deliberately embracing strategy development in a different way can help teams break the common pattern of merely extrapolating current trends into the future. The best ideas and new perspectives truly come from everywhere, so engaging leaders (and the organization more broadly) to think bigger can help people break out of their current rivers of thinking, allowing them to view the business of today and the potential business of the future in fundamentally different ways.

2. Create discrete possibilities to focus thinking. With a wide runway for strategy creation, people (and leaders) can easily produce a list of strategic alternatives a mile long, to a point that they become quickly overwhelmed. This result is driven by the same logic that makes someone lose their way in the cereal aisle, paralyzed by having so many choices. After starting with a wide approach to explore strategic possibilities outside of a given industry or against known competitors, the best organizations then intentionally narrow the list to frame a few discrete and mutually exclusive options for the leadership team to consider. Evaluating a few potential options allows leaders to better access longer-term strategic thinking.

Take, for example, the experience of a fast-growing founder-led software company that had just gone public. Shortly after their IPO, the senior managers told Wall Street they would reach $1 billion in revenue in three years. Unfortunately, there was internal disagreement over which direction to take to achieve that target, creating unrest and confusion throughout the organization. We started by helping the senior managers gain clarity about which approaches to pursue and to define three mutually exclusive strategic plans. We then helped the executive team to better understand current state realities, to determine potential risks, and to solidify the ideal execution plan. We did that in part by leveraging the power of a quantitative model of their business to help them see the challenges and opportunities within each of the three strategic options.  

1. Extend scenario planning beyond the C-suite. Stress-testing various scenarios and pre-planning responses is a well-honed tactic for traditional strategy development. Much of the power of scenario planning is that it creates space for debate and discussion, and for placing concerns on the table in a productive way. It also builds confidence and a sense of ownership in the planning group tied to the belief that their best thinking has been considered and applied. And it leads to more resilient and adaptive strategy execution. Rather than trying to cascade and communicate a linear plan throughout the company, the most adaptive organizations define the overall direction and use scenario planning to engage employees to work together on a solution. Here’s an example.  

A company in a highly regulated industry was facing a slew of new carbon regulations being debated in the state legislature. Eager to prepare a response to whatever emerged from the legislature, the executive leadership team looked to their functional and business unit leaders for a deeper understanding of the technical and business implications of the full range of likely outcomes. We helped the functional leaders assess the potential regulatory paths, use scenario planning to explain the implications of each path for the company’s business, and scope out the likely responses of competitors to all of the possible changes. The cross-section of this data was then used to identify no-regret decisions that the company would make for each of the outcomes. The use of scenario planning allowed the functional leaders to suggest a menu of strategic options to the C-suite—and then provide the opportunity to continue down the various paths and “experience” the technical and business problems they would likely encounter. Overall, the approach exposed the functional leaders to the core strategic trade-offs of each decision and created a strong sense of ownership of the problem.  The fact is that while the world is no longer predictable, companies still approach developing their strategies as if markets are consistent and reliable. This is one of the 3 biggest reasons why companies fail to execute on great strategies (check out this white paper to find out more about the other two.) Actionable strategy is about engaging the organization in an integrated process of defining the future state, making that future believable and real to the touch, enabling people to change to make the organization ready for its changes, and creating the environment to assess and pivot along the way. Our work and research have shown that people can and will change—happily—and it’s our role as leaders to provide the conditions for their success. Start by embracing the unpredictable and make strategy development your organization’s super power.  You’ll be well on your way to making your strategy actionable.

A high-performing organization is often the product of a high-caliber company culture.

In today’s dynamic and competitive business landscape, company culture is the foundation for strategic success. Leaders understand that to thrive, their organizations must cultivate a culture that values innovation, trust, and inclusivity. But how do you develop a culture that attracts top talent and retains them to their full potential? Creating such a culture requires more than occasional team outings or a trendy office space. It demands a concerted effort focused on principles that are authentic, enduring, and aligned with the company’s vision. Here are four core strategies to equip your organization with a culture that energizes productivity and attracts the best talent.

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1. Define your core values

The cornerstone of any robust company culture is a well-defined set of core values. These values serve as the cultural north star, guiding behavior, decision-making, and the company's interactions with the world. A company that knows and lives its core values creates a strong identity for both employees and customers.

‍Articulate your identity. Begin by identifying what your company truly stands for. Is it integrity in all business practices? A relentless pursuit of customer satisfaction? Or a commitment to a sustainable environment? These intrinsic values, when clearly articulated, form a powerful basis for company-wide alignment.

‍Integrate values into daily operations. For your values to hold weight, they must be ingrained into the fabric of the organization. Ensure that HR practices, performance evaluations, and leadership assessments all reflect your core values. Consistency between what is said and what is done strengthens the culture you are building.

2. Open communication about change

High-performing companies thrive on open dialogue. Communication is the conduit through which trust, innovation, and collaboration flow. Cultivate an environment where every team member is encouraged to voice their thoughts.

‍Support transparency. Create channels to support open communication, such as suggestion boxes, regular town hall meetings, or digital platforms for anonymous feedback. The goal is to make it easy for everyone to share their perspective.

‍Use feedback constructively. Feedback, both positive and corrective, is crucial for growth. Make constructive feedback a regular part of the employee experience, viewing it as an investment in their development.

3. Invest in employee development

Companies that invest in their employees see enriched capabilities, higher engagement, and greater loyalty. This reflects a culture that values people as its primary asset.

‍Promote continuous learning. Encourage a culture of continuous learning by providing resources and autonomy for skill development. This benefits individuals and ensures the company's adaptability to industry changes.

‍Tailor growth plans. One-size-fits-all does not apply to employee development. Tailor growth plans to individual aspirations and company needs, ensuring they are relevant and achievable. Clearly communicate these plans to show the company’s commitment to each employee's journey.

4. Recognize employee efforts

Acknowledgment is a powerful motivator. Celebrating employee contributions reinforces behaviors and outcomes that align with company objectives.

Implement a recognition program. Establish a program that ensures regular recognition, not just an annual formality. Recognition should be specific and public when appropriate, setting a positive example for others.

‍Celebrate milestones and achievements. Mark significant milestones and achievements with public celebrations. These events boost morale and reiterate the company’s appreciation for its workforce.

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Conclusion

‍The four strategies outlined above are pillars of a high-performing and sustainable company culture. When integrated into the fabric of an organization, these strategies create a ripple effect, influencing every aspect of the business from employee retention to innovation and, ultimately, financial success.Building a high-performing company culture is a journey, not a destination. It requires vigilance, adaptability, and a relentless focus on continuous improvement. Yet, the rewards—happy, motivated employees and a thriving business—are well worth the investment. Start today and let your company culture guide your organization to new heights.

Business simulations are a powerful, yet often overlooked tool in the world of leadership development. In this comprehensive guide, we'll explore the framework behind business simulations and uncover their potential for shaping dynamic leaders.

Business simulations: Powering excellence through practice

Imagine a training method that combines the complexity of real-world business with the safety net of a virtual environment; such is the power of business simulations. Simulations provide an immersive experience, enabling leaders to experiment with potential strategies and decisions, gain insight through doing, and witness the ripple effect of their choices—all without the risk of consequence on the organization’s bottom line.

What is a Business Simulation?

Business simulations are complex algorithms applied to replicate real business scenarios for leaders and teams. They incorporate key factors such as market dynamics, consumer behavior, and operational intricacies to create the perfect environment for experimentation and innovation. These sophisticated models offer a sandbox where executives are able to test their mettle, apply theories in practical settings, and receive instant feedback on their performance.

How to build a successful simulation

Executing a business simulation that is both engaging and educational, means meticulously chart the course within the context of your business. This process begins with defining learning objectives and aligning the simulation’s outcomes with the company's strategic goals. Participants are chosen based on their roles and the appropriately related competencies the simulation is designed to develop. Finally, the learning environment must be supportive, ensuring that the experience is comfortable but challenging.

Leveraging Business Simulations for leadership development

Empirical evidence shows that business simulations are a powerful medium for not just learning, but also for unearthing leadership potential and transforming skills.

Key elements of effective Simulation

An effective business simulation encompasses these vital elements:

• Relevance: The simulation must mirror real business challenges, ensuring that lessons are transferable to the workplace.

• Engagement: It should captivate participants, fostering a collective desire to win and learn simultaneously and together.

• Feedback: Immediate and clear feedback throughout promotes a continuous learning cycle and encourages iterative improvement.

Impact on leadership skills enhancement

Business simulations have been particularly effective in honing:

• Critical Thinking: Participants are forced to analyze and extrapolate from complex data sets, and subsequently learn to make better informed decisions.

• Adaptability: The dynamic nature of business simulations prompts leaders to pivot and strategize in response to changing circumstances.

• Ethical Decision-Making: The safe space created by a simulation environment allows leaders to explore the ethical implications of their choices without the usual high stakes and or external consequences.

Successful implementation strategies

Successful business simulation experiences happen when organizations lay the groundwork and set the right expectations up front, fostering an environment of safety and trust for all participating. Providing follow-up coaching and mentoring post-simulation is also crucial, enabling leaders to integrate their newfound skills into their day-to-day practices.

Compelling reasons to integrate Business Simulations into executive training

Simulations are also a great tool to test and prepare high potential leaders and raise their game through practice.

Elevating strategic thinking

Simulations force participants to think strategically, looking beyond immediate tactics to long-term goals and vision. They offer a rarefied platform to dissect and understand the interconnectedness of business elements and how each part contributes to the whole.

Sharpening decision making

The high-fidelity environment of business simulations forces leaders to make strategic decisions under pressure. In this way, simulation scenarios mirror the urgency and complexity of real-life business, helping leaders mature their decision-making musculature in real time.

Nurturing team collaboration

Collaboration is the heartbeat of many corporate ventures, and simulations present a unique opportunity to foster this skill. By participating in a shared experience, teams develop synergies, learn to communicate effectively, and crystallize roles within the group.

Mastering risk management

Risk is ubiquitous in business. Simulations provide a structured approach to risk that equips leaders with the ability to assess, mitigate, and take calculated leaps—essential competencies for effective business management.

Increasing financial acumen

Business simulations are especially effective methods of deploying financial training. In this variety of simulation, leaders encounter and manage P&L statements, balance sheets, and cash flow. These encounters, contextualized in the reality of their own business, provide learning opportunities deepen participants understanding of organizational financial dynamics.

Fostering innovation and creativity

Simulations are a practice ground for innovation. Simulations spur creative thinking that is essential for staying ahead in a competitive marketplace, encouraging leaders to experiment with business models and various hypotheses.

Providing Real-World Experience

The most significant advantage of business simulations as a learning tool, is the real-world experience leaders develop in these risk controlled settings. An immersive learning experience, business simulations effectively bridge the gap between theoretical knowledge and pragmatic application.Business simulations are more than just a training exercise; they are a philosophy that propagates experiential learning. By integrating simulations into executive training, organizations lay the foundation for robust leadership, strategic acumen, and overall business resilience. Simulations challenge participants to embrace the unknowns, traverse complexities, and emerge as sharp, decisive leaders.

In contemporary corporate leadership training, one size certainly does not fit all. Traditional classroom models of executive development are becoming relics in the museum of outdated business practices. Today's business world demands of organizations a new, agile, innovative approach to learning and leadership grooming. Fortunately, at the nexus of technology and educational psychology, a dynamic tool is reshaping how we cultivate influential leaders - business simulations.

Understanding Business Simulations

In executive education, business simulations are the pinnacle of immersive learning. Designed to simulate real-world business scenarios, they provide a safe space for leaders to experiment, make mistakes, and reflect on outcomes. What exactly are business simulations, and why are they creating such a stir in the executive suite?A business simulation is a strategic business tool designed to provide a realistic and dynamic environment in which participants can practice and enhance their business acumen, decision-making, and leadership skills without the potential risks and high stakes of the corporate world.

The purpose and benefits of business simulations

Business simulations help leaders develop skills in critical thinking, decisive action, and team development. The approach to learning through active participation not only deepens understanding but also solidifies skills in a manner unparalleled by traditional lectures or case studies.

• Experiential learning: Unlike passive learning, business simulations put the participant at the center, driving their learning through hands-on experiences.

• Adaptive coaching: These simulations offer immediate and detailed feedback, guiding leaders through each decision with tailored advice on performance and strategy.

• Measurable outcomes: With clear learning objectives and defined metrics, the impact of business simulations on skill development can be tangible and quantifiable.

Key elements of effective simulation

An interactive ecosystem

Business simulations create immersive and dynamic environments that replicate the complexities of the real business world. The participant’s interactions within these environments goes far beyond simple role-play; individuals are stretched to strategize, forecast, and lead in new ways.

Scenario-based learning

The power of simulation lies in scenarios. Simulations breathe life into abstract concepts, strategies, and theories, by providing context and grounding participants in a tangible relevance that helps meaningful change stick. These simulated scenarios are rooted in your business context, which ensures that the skills learned are directly transferable to leadership roles back at work.

Decision making challenges

Leadership, is fundamentally about decision making. Business simulations present leaders with carefully crafted decision points, placing a premium on the participant's ability to analyze, synthesize, and decide under pressure.

Team collaboration

Today's leaders must be more collaborative than ever before. Effective business simulations are designed to improve team dynamics by pushing participants to work together, leverage the strengths of each individual, and synchronize efforts towards a common goal.Each element of the simulation synergizes to create an intricate tapestry of learning that engages, educates, and empowers future leaders.

Impact on leadership skills enhancement

Communication and interpersonal dexterity

In virtual boardrooms and digital work environments, simulation participants must harness their communication skills to lead, negotiate, and inspire team members. The real-time nature of these interactions is a powerful catalyst for skill development in this critical domain.

Decision making and problem-solving under duress

A hallmark of great leadership is the ability to make sound decisions under the complex conditions of uncertainty and duress. Business simulations offer the perfect laboratory to practice and perfect these high-pressure leadership skills.

Strategic acumen and planning

Strategy is the lynchpin of leadership. Business simulations are well-designed strategic challenges that push participants to think analytically, envision long-term goals, and chart a course of action, gauging the environment as they advance.

Successful implementation strategies

Tailoring simulations to organizational culture and goals

Not all simulations are created equal, nor should they be. Successful implementation relies on alignment of content and learning objectives. Good simulations take into account the unique culture, challenges, and strategic imperatives of the organization they are designed to support.

Continuous improvement through feedback

Business simulations are an iterative experience. Participants are more successful when they share constructive feedback along the way. This ongoing dialogue helps create a culture of continuous learning even outside the simulated environment.

Integration with existing development programs

A business simulation will have a lasting impact when it complements and integrates with existing leadership development initiatives. This design best practice creates a consistent, coherent, and comprehensive learning experience for all.

A large financial services company promoted a key leader into the position of CEO. Two of their peers were also vying for the top job. Almost immediately, the other two executives left the company. This created an unexpected leadership vacuum that cascaded within their respective departments, where no one on either team was able to step up into the suddenly vacant leadership spots. The lack of “ready now” successors required the company to look outside to replace those executive leadership roles, significantly disrupting their critical strategic transformation effort and creating additional chaos at the top of the company at a time when they could ill afford to slow momentum.

Similarly, a global manufacturing company promoted a key leader into the CEO role who lacked sales and marketing experience – an area where his predecessor had deep expertise. This expertise was a critical driver in the company’s success to date, and the gap at the top was stalling revenue growth and impeding the new CEO’s ability to deliver on the Board’s expectations. In order to fill the CEO’s knowledge gap, the company reorganized the head of sales and marketing role so that it was led by two executives instead of one. This unanticipated restructuring created confusion across the C-Suite and the rest of the sales and marketing organization regarding roles and responsibilities, which compounded their challenges in driving growth. The unexpected increased salary costs accompanying the additional executive role further impacted the bottom line, as well.

What these two examples illustrate is the Domino Effect. The Domino Effect occurs when a star performer is promoted, and there is no “ready now” successor to fill the role they are vacating. With so much attention placed on getting a new CEO into the role, the Domino Effect can cascade down through the organization and is an often hidden and unanticipated outcome that can hinder even the most capable chief executive from successfully taking the reins.

Assessing the impact of the Domino Effect

Conventional wisdom and the literature suggest that CEOs sourced internally outperform CEOs that are sourced externally. For example, in Harvard Business Review’s “Best CEOs of the World” top 100 list, 84% came from internal promotions1. The majority of leaders who ascend to the CEO role are COOs, CFOs, divisional CEOs, and some are “leapfrog” leaders identified below the C-Suite2. A question that has not been addressed is: what happens to the performance of the company when there are no internal candidates for the new CEO’s previous role? In other words, what is the impact of the Domino Effect on company performance?  

To answer this question, we compared the S&P 500 twenty best performing companies3 with the twenty worst performing companies4 based upon percentage change in stock price.  

‍What happened at the Best Performing companies?

Within the top 20 best performing companies, 75% of the CEOs were internal with 5 of the CEOs being founders of the company and 10 being promoted into the role. For their former positions, from which they were promoted, four were filled by internal candidates, and two were replaced with external candidates. Examining the leadership teams on the company’s websites, it appears that in three incidences, the role that the CEO vacated no longer exists. In one case the role was restructured and split into two different positions.

‍What happened at the Worst Performing companies?

70% of the CEOs at the worst performing companies came through promotions or being founder led (12 and 2 respectively), which is nearly identical to the best performing companies. All things being equal, one would expect a similar trend regarding the number of internal vs. external replacements for the CEOs’ previous roles from which they were promoted. However, we found that there were differences. Only three of the backfilled positions were placed by internal candidates and four were placed by external hires. In three of the companies, the position no longer exists, and two of the companies restructured the position.

Understanding the impact: disruption and worsening performance

The research shows little difference between the best and worst performing companies in relation to internal promotions and external hires for the CEO position. However, we do see more organizational disruptions in the replacement of the previous roles held by the CEO. A disruption is defined here as either the company was required to hire from the outside, restructure the role, or eliminate the role altogether. All of these create added turmoil and challenge for the new CEO as they try to move quickly to onboard and start delivering impact.

We found that disruptions were present in 60% of the top-performing companies, compared to 75% of the poorest performing companies. While more research is needed to uncover the nuances, our research suggests that companies with a stronger bench for newly promoted CEOs’ previous positions have less organizational disruption and outperform those who do not have a strong bench.

Tackling the Domino Effect before it falls

While CEO succession garners the greatest amount of the spotlight in the press, among board members, and in public sentiment of the health of a company, our research underscores the need for CEOs, CHROs, and Boards to focus on the Domino Effect as part of their C-Suite succession process. That is, creating a bench of potential successors targeted specifically for the CEO’s previous role, and the roles deeper within the organization that could replace those who are being elevated in the company at the time of the new CEO transition.  

Consider these best practices to get ahead of the Domino Effect:

• Build the backfill into the identification process. When identifying potential candidates for the CEO, simultaneously consider who may replace that candidate for their current role.

• Focus on the role rather than the person. You may not be able to replace the next CEO’s position with one individual, but you may be able to replicate their skills with people who can excel in the role with complimentary skills.

• Expand the purview of success profiles. Create success profiles for the CEO and those roles that are likely feeder pools for CEO. Ensure that the success profiles are future focused rather than focused on what is important today. Business realities change over time. What makes someone successful today may be different than what is required in the next 3 to 5 years.

• Leverage the power of data for determining future success. As you look at your bench, use structured assessment processes to assess individuals against the success profile, reduce the risk of biases towards individuals, and determine their readiness to address the future business challenges that the organization will face.

• Comprehensively build the right bench. Look broad and deep within the organization when identifying potential successors. You may find those “leapfrog” leaders who would otherwise be overlooked.

• Continually refresh your succession slate. Given the cascading impacts of the Domino Effect, it is more important than ever to ensure your slate is up to date with viable candidates for higher level positions. Consider doing so on at least an annual basis.

• Ensure that succession is seen as a strategic imperative across the leadership of the organization rather than a single event of placing a new CEO. The CEO and the CHRO should own the succession process, the Board should be involved, and the focus should stay equally on the CEO role and the successor leadership roles throughout the organization.

Finding, placing, and ramping up a new CEO is a momentous decision with big outcomes at play – for the CEO’s own success and the viability of the organization. If you embrace the opportunity to turn the Domino Effect into a strategic gameplan, you will be positioned both for accelerated success and impact.

‍References

1 Harrell, E. Succession Planning: What the Research Says. Harvard Business Review December 2016

2 Harvard Business Review Staff. November 2009. The Best Performing CEOs in the World. Harvard Business Review 41-57.

3 https://www.fool.com/investing/2023/10/10/invest-sp-500-stocks-market-portfolio/

4  https://finance.yahoo.com/news/20-worst-performing-p-500-200036146.html

La anticipación suele ser fundamental en poder fomentar una cultura centrada en el cliente. Las empresas que utilizan una estrategia client centric a menudo pueden prever cada deseo, necesidad y posible capricho de su público objetivo, y encontrarse generosamente recompensadas en el proceso. Poner al cliente en primer plano, incluso por encima de los ingresos, puede hacer que una empresa sea un 60% más rentable. No es una mala propuesta para cuidar bien uno de los activos más esenciales de una organización.

Por supuesto, afirmar ser una empresa centrado en el cliente clientes más fácil decir que ejecutar. Las empresas que lo hacen con éxito a menudo utilizan un método diferente de pensamiento para lograr sus resultados: responden a las preguntas “quién-qué-por qué”. Utilizando estas tres preguntas, cada empleado puede entender mejor al cliente más allá de las simples características demográficas. Una comprensión más profunda luego ayuda tomar decisiones informadas, da forma a la experiencia en todos los posibles puntos de contacto y permite una orientación más reflexiva y significativa.

Con este método, los empleados hacen que los clientes se sientan vistos y escuchados. Los clientes ven a la empresa en la que eligieron confiar cumpliendo activamente con sus deseos y necesidades. Tales servicios básicos pueden hacer maravillas por la lealtad a la marca y la defensa de la marca. También puede animar a los consumidores a dedicar una parte más grande de sus billeteras, alrededor de un 3% a un 20% más.

En una sociedad acelerada, las empresas siempre deben buscar la manera más beneficiosa de apelar a los clientes y retener la lealtad. Una estrategia centrada en el cliente es el primer paso, aunque se necesita una comprensión más profunda de los deseos, necesidades y preferencias de del cliente y comunicarlas para obtener resultados tangibles. Esto plantea la pregunta: ¿Cómo se llega exactamente a una comprensión más profunda de un público objetivo?

Entendiendo al público objetivo

Las empresas suelen utilizar cuatro métodos específicos para captar hallazgos del consumidor y anticipar mejor los deseos y necesidades de los clientes. El primero es la observación naturalista, que monitorea las interacciones de las personas con el mundo. Estos hallazgos pueden ofrecer ideas sobre cómo un público objetivo podría intentar satisfacer un deseo o necesidad única. El segundo son las encuestas a los clientes que permiten a las organizaciones recopilar comentarios valiosos. El tercero son los grupos focales, que involucran a los clientes discutiendo productos o servicios.

Los datos son la cuarta estrategia. A diferencia de los otros, este método es donde las empresas están experimentando actualmente el mayor cambio. La computación en la nube ha llevado a replantear las actividades orientadas a la comprensión del cliente, como la analítica de servicio al cliente, la experiencia de marca, el marketing en redes sociales y las herramientas de voz del cliente.

Las nuevas opciones y sistemas pueden abrumar fácilmente a cualquiera que busque los datos correctos para implementar una estrategia enfocada en el cliente. Comenzar con un número limitado de métricas y expandirse desde allí puede ahorrar tiempo, dinero y problemas. Aquí es donde deben dirigir la atención primero:

1. Experiencia de marca

Seguir la experiencia de marca puede ayudar a capturar el sentimiento del consumidor sobre su marca. Da una mejor idea de lo que las personas piensan y sienten acerca de sus servicios. Si se hace bien, el seguimiento de la experiencia de marca puede dar luz a las iniciativas de la marca que funcionan o no, lo que permite redirigir los esfuerzos rápidamente. Tanto el puntaje neto de promotores como la satisfacción del cliente pueden ayudar a cristalizar lo que los consumidores podrían estar diciendo y pensando sobre su marca.

Las encuestas también pueden ser una gran fuente de información. Mantener las preguntas al mínimo y orientadas para fomentar una participación más completa. Además, asegurarse de no bombardear a los consumidores con cuestionarios. Una buena frecuencia para captar tales sentimientos puede ser trimestralmente. Entender las mentalidades de sus consumidores los anima a confiar en su marca y a seguir volviendo por más.

2. Experiencia del cliente

El seguimiento de la experiencia del cliente implica comprender las diferentes dimensiones del deleite del cliente, incluidas las reacciones emocionales y racionales a las ofertas de una empresa. También proporciona información sobre la inclinación del cliente a volver a comprar, recomendar o rechazar un producto o servicio en el futuro.

Usando ciertos conjuntos de datos, particularmente aquellos asociados con las interacciones, transacciones y perfiles de los clientes, puede llegar a lo que McKinsey & Company llama “perspectiva predictiva”. Esto puede ayudar a dar forma a la experiencia del cliente en el futuro. Todo lo que se necesita son algoritmos de aprendizaje automático para dar sentido a la información y dirigir fondos hacia ciertos puntos de contacto más propensos a impulsar el comportamiento a lo largo del viaje del cliente.

3. Alineación de empleados

En una organización centrada en el cliente, cada persona comparte el objetivo de crear una gran experiencia del cliente, desde los ejecutives hasta los asociados de primera línea. El seguimiento y la medición de la alineación de los empleados, o AE, le darán una mejor idea de qué tan bien cada miembro del equipo comprende a los clientes y, lo que es más importante, cree que entender y satisfacer las necesidades del cliente son fundamentales para el éxito de la empresa y el suyo propio.

AE comienza con un sentido de camaradería y pertenencia. Una encuesta de Deloitte encontró que el 79% de los empleados tienden a estar de acuerdo. Además, el 93% cree que es un factor que impulsa el rendimiento organizacional. Cuando los empleados pueden ver un objetivo común, es más probable que lo alcancen para el éxito de todos los involucrados.

Como con cualquier iniciativa relacionada con el cliente, todo se reduce a los datos. Los pasos más importantes son monitorear el sentimiento del cliente y comprender dónde puede ubicarse su empresa dentro de sus decisiones de compra. Simplemente aprecie que un movimiento incorrecto puede hacer que las personas busquen alternativas a sus servicios. Los clientes quieren lo que quieren cuando lo quieren. Al centrarse en una estrategia comercial centrada en el cliente, puede asegurarse de que lo obtengan y sigan regresando por más

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In the ever-evolving business landscape, maintaining a cultural edge is crucial for success. At BTS, we say, “Culture eats strategy for breakfast.”

An organization's culture defines its identity and sets the tone for its performance, innovation, and growth. Culture transformation is the journey from the current culture to the aspirational culture the organization seeks.

Senior leaders often grapple with how to drive effective culture shifts amidst resistance, skepticism, and a marketplace that scrutinizes an organization's integrity. The challenge is not merely to introduce new cultural values but to embed them into the company's DNA.

What is Culture Transformation?

Before diving into the 'how,' it's essential to understand the 'what' and 'why.' Culture transformation is a conscious and deliberate shift in the cultural attributes of an organization. It's a strategic process aimed at changing beliefs, values, and behaviors across all levels. This transformation is crucial for organizations that are:

• Adapting to market shifts or digital transformations
• Fostering an inclusive and diverse workplace
• Breaking away from legacy habits and practices
• Undergoing a merger or acquisition

These scenarios often signal a need to recalibrate company culture to thrive in new environments.

Culture Change Requires a Movement, Not a Mandate

Culture change isn't a top-down directive that can be issued and obeyed. It's a grassroots movement requiring buy-in at every level. The transformation must be inclusive, participatory, and sustained over time.

To initiate such a movement, leaders must genuinely connect to the new cultural vision. Visibility, storytelling, and leading by example are critical. Employees are more likely to align with new values when they see leaders embodying them consistently.

4 Strategies to Build a High-Performing Company Culture

Creating lasting culture transformation is strategic and systematic. Here are four interconnected strategies to guide your organization toward a future-ready culture.

1. Define Your Core Values

The cornerstone of robust company culture is a well-defined set of core values. These values serve as the cultural north star, guiding behavior, decision-making, and interactions. A company that knows and lives its core values creates a strong identity for employees and customers.

2. Foster Open Communication

High-performing companies thrive on open dialogue. Communication is the conduit for trust, innovation, and collaboration. Cultivate an environment where every team member is encouraged to voice their thoughts.

3. Invest in Employee Development

Investing in employee growth pays off with enriched capabilities, higher engagement, and greater loyalty. This reflects a culture that values its people as its primary asset.

4. Recognize Employee Efforts

Acknowledgment is a powerful motivator. Celebrating employee contributions reinforces behaviors that align with company objectives, transforming abstract concepts like hard work and innovation into tangible rewards.

‍Conclusion

‍Creating a thriving organizational culture requires deliberate effort and strong leadership. By defining core values, fostering open communication, investing in employee development, and recognizing efforts, leaders can effectively drive meaningful change.

A successful culture transformation builds a sense of belonging, purpose, and unity, aligning everyone towards shared goals. This enhances employee experience, boosts performance, and fosters innovation. In a competitive world, a strong, cohesive culture is your ultimate advantage, guiding your organization toward sustained success and growth.

Mastering virtual realities for real-world results

Senior executives are increasingly turning to one powerful tool to optimize their decision-making and strategic planning: business simulations. Leaders who are committed to helping their organizations grow into the future understand the potential of this invaluable virtual reality is not just a nice to have, but need to have. In short, simulations change the game when it comes to strategy, alignment, and change.

Understanding Business Simulations

What is a business simulation? It is a dynamic, iterative model of an organization's business operations, or a part therewithin; simulations leverage technology to mirror complex real-world scenarios designed for learning. Simulations are designed to empower leaders by giving them a low-risk, hands-on learning experiences that bridge the gap between analysis and execution.

Purpose and benefits in decision making

The core purpose of a business simulation is to simulate a real-life business scenario. Some common examples include scenarios like new market entry, product launch, crisis management, and many similar situations that significantly impacts revenue, talent, growth, and customer satisfaction.

Types of simulations

Simulations come in many flavors, each suited to a particular business need. At BTS, we offer a variety of simulations that are customized to the support the specific needs of our client organizations.

Enterprise simulations

Dynamic business simulations are built to immerse your cross-functional teams in real-world customer problems, business trade-offs, and dynamic competition.

Strategy simulations

The best way to activate your strategy, from the top down, is by creating opportunities for your leaders to pressure test and practice.

Workflow simulations

Supply chain, engineering product design and manufacturing, sales methodologies and agile sprints are complex processes. Employees need simulation time to understand the bigger picture in these situations. Simulations shed light on cause & effect, key metrics, and the ways in which each individual contributes to the desired outcomes of your strategy.

Job simulations

Test driving a day in the life deepens understanding of expectations and provides insight into capabilities and development needs to perform at peak.

Leadership and cultural simulations

Leaders and managers need to practice the pivotal Moments where leaders make or break cultural shifts. Leaders need to build experience in recognizing key moments, identifying what great looks like in those moments, and then practice new behaviors and mindsets to accelerate development.

Business unit and function simulations

These simulations help illustrates what a high performing function/BU looks and feels like and highlights the pivotal levers and KPI’s required to drive the right business outcomes.

Steps to a successful Simulation

Business simulations are an art as much as they are a science. Below are the steps you must take to make the most of this tool and meet the needs of your organization.

Step 1: Define objectives and scope

Always begin with a crystal-clear understanding of what you aim to achieve. Are you testing a new product idea? Assessing the impact of a merger? Preparing for an industry disruption? Defining your why early on will bring focus to your simulation, align the goals of your team, and ensure the simulation directly addresses your key challenges and desired outcomes.

Step 2: Select Simulation tools and software

Choose your tools wisely! Today's market is replete with sophisticated simulation tools and software. Be it COO models, supply chain management platforms, or market forecasting applications — select the ones that align best with your objectives and are adaptable to the unique contours of your enterprise.

Step 3: Gather relevant data

Data is the lifeblood of every simulation. Precise, current, and comprehensive data is necessary to construct a realistic model. From financial reports to customer surveys, gather a wide range of internal and external data points to feed the simulation engine.

Step 4: Build scenario models

Next, design the scenarios you aim to simulate. Develop base case, best case, and worst-case scenarios to cover a spectrum of possibilities and outcomes. Tweak variables, such as pricing or marketing strategies, to observe the ripple effects across your simulated environment.

Step 5: Conduct the simulation

It’s game day! Assign and assume roles, make decisions, and witness the unfolding of events. This stage requires active participation, strategic thinking, and agility to respond to dynamic conditions that arise within the simulation.

Step 6: Analyze results and extract insights

When participants have completed the simulation, it's time to sift through data and narratives to understand how their decisions fared. Look for trends, root causes, and areas where your strategy was sound or could benefit from refinement.

Step 7: Implement findings into strategy

The final step — and often the most critical — is translating insights learned into actionable strategic plans. Whether it's a pivot in your product line, an adjustment to your communication strategy, or a shift in your operational model, use the simulation as a compass to guide your next moves.

Big benefits for executives

For senior leaders, the impact of a business simulation experience is lasting. Simulations promote continuous learning and push teams constantly iterate, improve, and work together well into the future. The distance between learning and application, in this practical experience, is reduced to a few clicks.

Enhancing strategic thinking

Simulations require big-picture, enterprise thinking. By engaging in these exercises, senior leaders enhance their strategic prowess and develop the ability to connect disparate dots to make better decisions on behalf of your organization.

Fostering team collaboration and alignment

Simulations are not just for solitary strategists; they magnify the importance of teamwork and the art of consensus building. They provide a platform for teams to align their vision, collaborate effectively, and intimidate the turbulence of change with prepared unity.

The future is now

In the relentless sprint toward the future, business simulations stand out as driver of future success. Simulations position leaders to transform every key decision, and every strategic goal, into a story of success and alignment.

While small and medium-sized enterprises (SMEs) play a vital role in driving economic growth and innovation, they often face unique challenges when dealing with banks. This makes relationship banking crucial to their success. By strengthening their relationship banking models, banks can differentiate themselves from competitors by improving the support they provide to SMEs, helping these businesses overcome challenges and thrive in the marketplace. In discussions with owners of SMEs about their experiences with banks, four common concerns emerge:

1. Access to credit. Obtaining financing for purposes such as working capital, expansion, or equipment purchase is a significant challenge for SMEs. Banks often perceive them as riskier borrowers due to their limited credit history, lack of collateral, or volatile revenue streams, which can make it difficult to secure loans.
2. High interest rates and fees. SMEs may face higher interest rates and fees compared to larger, more established businesses due to banks' perception of greater default risk, as well as limited financial transaction volumes.
3. Complex application processes. SMEs often face time-consuming and complex loan application processes, requiring extensive documentation such as financial statements, tax returns, and business plans.
4. Inflexible lending terms. SMEs may struggle with inflexible lending terms, including strict collateral requirements, short repayment periods, or covenants that restrict operational flexibility. These terms can make it difficult for SMEs to manage cash flow and invest in growth.

By adopting the following approach, relationship managers can help businesses overcome these challenges:

• Advocate for clients within the bank, helping them secure financing for business expansion, capital investments, working capital growth, and asset accumulation.
• Offer guidance on optimizing cash resources within the constraint of limited capital resources.
• Provide advice on managing personal wealth accumulated through business ownership.

This approach requires a set of knowledge and capabilities:

• Business acumen—an understanding of SMEs’ unique needs and business challenges.
• Recognition of the essential role cash flow plays in small business success and an understanding of how to optimize it.
• Familiarity with the financial impact of bank products on SMEs' finances.
• Understanding of small business funding models, including the roles of owners, banks, and investors.
• Insight into the migration of SMEs to medium-sized enterprises.

Equipped with these capabilities and this knowledge, bankers can employ critical relationship management skills at four key stages:

• Planning. Gain local market knowledge and industry/sector expertise before engaging with clients.
• Discovery. Approach SMEs with a focus on their unique needs, recognizing the distinct characteristics of owner-managed and owner-financed businesses.
• Engagement. Position offerings from a client-impact perspective, rather than a bank- product perspective, addressing the specific needs and challenges of SMEs.
• Closing. Adopt a partnering approach and act as an advocate for SME clients within the bank, particularly when dealing with credit functions and decision-makers.

By focusing on these areas, banks can enhance their relationship banking model for SME customers, providing personalized support and tailored financial solutions to help small businesses succeed in a competitive landscape.

In today's rapidly evolving consumer landscape, marked by disruptive innovations and increasing competition, retail banks are facing a pivotal moment. Digital banking is here to stay – but shockingly, so too is its predecessor - branch banking. The traditional role of the branch is evolving, however, and leaders in the industry need to stay relevant in this dynamic environment by embracing key changes.

Why are branches alive and well in the digital age?

Despite the proliferation of digital channels, brick and mortar branches continue to play a vital role in retail banking. Research shows that while routine transactions are moving online, branches still remain critical to:

• Customer acquisition and retention: Branches remain the primary channel for opening new accounts and acquiring customers, particularly high-value segments.
• Personalized advice and sales: Complex and high-value products such as mortgages, loans, and investments require personalized interactions. Branches excel at providing tailored advice and converting sales opportunities.
• Trust and loyalty: Human interactions are essential to building trust and loyalty, especially when addressing financial concerns and needs.

The future of branch-level sales management

To stay competitive and relevant, sales leaders in retail banking must pivot from traditional methodologies and adopt a future-forward approach. This means:

1. Adapting to customer preferences: Sales leaders must understand and respond to changing customer behavior and preferences, thus offering a customer experience that seamlessly integrates digital and physical channels.

2. Leveraging data and analytics: Sales leaders must be able to harness the power of data to gain insights into customer behavior, preferences, and needs. This enables leaders to take a targeted and personalized approach to engaging customers.

3. Empowering sales teams: Sales leaders need to invest in the development of their sales teams, enhancing their skills and knowledge and equipping them with the right tools to deliver exceptional customer experiences.

4. Optimizing branch functionality: Sales leaders must rethink the branch model, focusing on smaller, more versatile formats that cater to specific customer needs all within the same branch footprint.

5. Innovation and collaboration: Sales leaders must foster a culture of innovation and collaboration, encouraging their teams to experiment, learn, and share best practices. Organizations should consider collaborating with fintech companies to take advantage of emerging technologies and deliver innovative solutions that better meet customer’s needs.

A call to action

Digital banking may be the future, but branch baking is here to stay. Sales leaders in retail banking who want to thrive in the future need to embrace this transformation, the integration of old and new, and reimagine how they manage their customer experience and how they meet customer needs. By adopting a forward-thinking approach, leveraging technology, and nurturing talent, retail banks can unlock new opportunities, drive growth, and stay relevant amid increased competition. Are you ready to take on the challenges and opportunities that lie ahead?

The financial reports for banking groups around the world today all showcase one recurring investment theme – digital transformation. Many organizations, still hampered by legacy systems, are focusing their transformation on digitizing their ways of working. For others, digital transformation is an opportunity to create more meaningful customer experiences by leveraging the power of data and analytics to reduce cost, adopt intuitive systems, and provide solutions faster.  

As customers in both personal and corporate banking take advantage of digital platforms and tools, the role of “in person” sales is diminishing. This is especially true for routine or transactional sales. However, as the ability (and willingness) of customers to self-service using digital channels increases, so does the role of the banker as a trusted advisor.  

When today’s customers engage with your sales representative, they are coming to the table more informed than ever before. They have already used digital channels to do their primary research. In these circumstances, the customer is seeking expert advice and the bar is high to get it right, fast. These human-to-human interactions are built on trust – your customers trust your sales representative to solve their specific problem in the moment, quickly, and without friction. The “in-person” seller must be prepared to add value beyond what is available via digital channels.

What does this differentiated “value” look like?

Customers today, more than ever, value brands who show a deep understanding of their personal (or business’s) circumstances and challenges. Sellers who understand this principle are best positioned to not only satisfy the customer’s needs but also accelerate the results they hope to achieve, delivering additional value either in speed of execution, or the quantum of the outcome.  

How to make selling personal

1. Speed and seamlessness

Customers want to quickly and seamlessly transition from online and self-service channels to a “human” interaction. When it comes to larger commitments or more complex products, communication channels need to provide fast access to human sellers who are available and ready to respond. The transitions are key ways to differentiate your brand against the competition and greatly improve satisfaction and customer loyalty.  

2. Quality digital tools

Systems integration is requisite for providing a seamless experience for both sellers and customers. Sellers should be able to view a real time, 360° view of the client interaction across all channels and understand how these channels work to ensure seamless customer engagement experiences.

3. Know thy customer

Sellers need to be aware that customers are engaging with them notably later in their buying decision process. This means that your sellers need to closely track with where your buyer is in the process – communicating with technology and tracking user experience is key here. The sales and discovery process does not begin from scratch when you join a call or offer a handshake – your customers will lose patience and feel as though their time is being wasted. Begin with questions to first validate what the customer already knows before engaging in discovery. Pausing for understanding will help sellers to solicit additional information and clarify circumstances and needs without alienating or frustrating the customer.  

4. Keep it personal

Describe your bank’s offering and value proposition in a way that feels personal to the customer sitting in front of you. Generic overviews of features and benefits won’t provide insights-based recommendations to solve the customer’s challenges or leave them feeling supported, informed, and inspired.  

5. Keep the support alive

Support the customer as they navigate the final steps in their decision-making. Extra touch points up front will help today’s banks build a loyal customer base in the future.  

The new age of in-person selling in banking is a departure from the traditional, but is also rich with opportunity. Leading organizations in the banking sector recognize that personalized, in-person service is trending. Successful bankers are adapting by meeting customers on their own terms, using agility to respond to customer needs and clearly connecting banking solutions to customers' financial goals.

Business simulations aren't just fancy add-ons to executive training programs and development initiatives, they're bridges to accelerating learning and fostering a resilient, adaptable workforce. In this blog, we'll share 7 compelling reasons why your organization should consider adopting business simulations as a part of your leadership development strategy.

1. Elevating strategic thinking

Strategic thinking is an exercise in envisioning the future. Leaders who understanding the playing field and making moves that reverberate and adapt are the ones who change the game for your business. Business simulations create an opportunity for executives to test and play out various scenarios and see the outcomes without the real-life risk of failure and consequence.

Simulations force leaders to think strategically and analytically. For high-potential, strategic thinking is a paramount skill, and business simulations offer a pragmatic path to its mastery.

2. Sharpening decision making

Executive decisions must be not only correct, but timely. A leader’s capacity to mobilize the organization swiftly has a direct impact on market success. Simulations enable participants to make decisions, effect change, and then quickly assess the impacts, honing the crucial art of making high-stakes choices under pressure.

In a simulation environment, every click of the 'proceed' button to implement a decision can be followed by tangible results, reinforcing the weight of every managerial choice. By repeatedly navigating such scenarios, leaders can discern patterns and develop a decision-making style that's swift, sound, and deeply informed.

3. Nurturing team collaboration

The complexity of modern business has made the leader as hero a relic of the past - teamwork and collaboration are the new currency of success, and simulations are fertile ground for cultivating collaborative work. Simulations often split participants into working groups, where they are prompted to tackle company challenges by leveraging collective wisdom. Each participant brings unique perspective, contributing to the synergy and success of the group.

4. Mastering risk management

Business environments, both stable and volatile, are spliced with uncertainty. Mastery in risk management is the art of steering the ship not only through calm seas but through the storms as well. Simulations confront participants with decision trees fraught with potential hazards, exposing them to the very real and costly consequences of miscalculations.

Executives gripping the helm during simulation exercises must learn to make calculated gambles and to pivot strategies when unforeseen risks materialize. This experiential learning paradigm not only builds individual proficiency but also ingrains a risk-aware culture throughout the organization.

5. Increasing financial acumen

For executives, the language of business often boils down to numbers and financial reports. Understanding these figures and the stories they tell is a pivotal skill. Business simulations are a great tool for immersing your high-potential leaders in the financial decisions that come with managing a business without the risks of real-world financial consequences.

Execution of strategy in a simulation is often accompanied by a financial report reflective of the company's standing, exposing participants to the nuances of financial implications tied to strategic decision-making. Thus, these simulations act as a financial 'flight simulator,' sharpening one's financial acumen without any real monetary turbulence.

6. Fostering innovation and creativity

The Henry Ford adage, "If I had asked people what they wanted, they would have said faster horses," is a great reminder that often, the most groundbreaking ideas need to be experienced before they are adopted. Business simulations help to do just that - they encourage participants to think outside of the box, testing unconventional solutions in a low-risk environment.

Simulations, as practice environments, allow for the unfettered exploration of ideas, subsequently encouraging innovation and creativity from even the most risk-averse participants. These sparks of creativity, when applied to the real world, are catalysts for far-reaching, original business strategies.

7. Providing real-world experience

Simulations by design provide a simulated, yet realistic, industry landscape where leaders can apply theories and strategies. The transformational value of this experiential learning can't be overstated. By interacting within a simulated environment, participants confront and resolve challenges similar to those they'll meet in their professional roles, giving them a head start when they must translate learning into leadership.

In a world crying out for nimble, forward-thinking leadership, business simulations carve out a timely niche. They educate through immersive practice, they refine skills through immediate feedback, and they adapt by mirroring the complexities of today's corporate mazes. For business professionals and their organizations, integrating business simulations isn't just a good idea—it's a strategic imperative.

Over the past year I have interviewed 100 leaders in sales, marketing, and customer success from across the globe in various industries about their greatest challenges. Among those, CRM and data-driven decisions consistently ranked at the top. Most interviews confirmed my own observations working with industry-leading clients: CRM implementations don’t fail because of technical challenges, they fail because of human challenges. Too often, organizations over rotate on technology and do not focus enough on adoption. CRM users are the critical – yet often overlooked – component of the initiative’s success or failure.  

For example, the Chief Commercial Officer of one life sciences organization shared: “We have one more shot.” After two failed CRM system implementations due to poor adoption by the organization’s people, yet another would impede any possibility of embracing a more data-driven approach to their sales and marketing efforts. As a result, not only would the organization fall behind the competition, it would also fail to realize significant growth potential given the anticipated gains in sales productivity and customer engagement driven by AI. While CRM implementation is costly and time consuming, its success is mission critical for organizations to get and stay ahead of the competition. So how do ensure your implementation is a success? Here are the top seven people-related reasons CRM implementations fail and how to avoid them:

1. Problem

Lack of buy-in and insufficient planning: Without strong buy-in and support from senior executives, the new CRM system will be met with resistance and low adoption rates. Furthermore, failure to adequately plan for implementation – the timeline, costs, resources, and communication – can quickly drain what little support you have and lead to costly delays, budget overruns, confusion, and frustration.

Solution

A well-defined plan and purpose: Do not implement a new system just because your competitors are doing so. Be strategic – are you looking to improve customer satisfaction, increase sales, enhance marketing efforts, or streamline internal processes? Having clear objectives will help you align the implementation with your organizational goals and gain critical executive buy-in. In addition, the “why” behind CRM implementation must be clearly communicated throughout the organization. The standard approach – a mandate that “you must use the CRM” – won’t work unless everyone understands the benefits for themselves, their team, and the company.

2. Problem

Insufficient change management: Reluctance to adopt new ways of working is a common obstacle to any change initiative and CRM implementations are no exception. This is particularly true when people have misconceptions about AI and compounding fears of becoming obsolete. Neglect to address change management and even the best system will fail.

Solution

Focus on shifting mindsets: Involve sales, marketing, and customer service leaders in the change early on to increase engagement. Authorship is ownership. Enlist these leaders as role models in using the system and encourage them to help their teams see the benefits of the new process. Successful implementation relies on shifting mindsets and adopting a more client-centric, data-driven, results-oriented, targeted approach to sales, marketing, and customer service.  

3. Problem

Inadequate training: New CRM systems require significant changes for your client development team in both process and behavior. Without sufficient training, even the most willing employees can get discouraged and fall off track.

Solution

Lean into capability building: Employees need to be trained on skills such as data analytics, data-driven management and leadership, and marketing automation. In addition, ensure they have access to in-the-flow-of-work support that is aligned with the customer’s buying journey and the company’s selling process.

4. Problem

Poor vendor selection: Selecting the wrong partner means you’ll spend time building a system that isn’t fully aligned with your organization’s needs. Consider implementation, integration, and support capabilities before you contract and begin work.

Solution

True partnership: The right partner will help make your CRM implementation a seamless process and make you look great while doing it. Find a partner who takes a holistic view of your business and deeply understands both your organizational and customer needs.  

5. Problem

Poor data quality: CRM systems rely on accurate and up-to-date data. The best CRM systems in the world will fail without complete and consistent information.

Solution

A cleanse is key: Data is the lifeblood of any CRM system. Ensure the quality and accuracy of your data by conducting a thorough data cleansing before migrating it to the new CRM. Develop a data migration plan, validate and map the data fields correctly, and test the migrated data to ensure its integrity and desired insights.  

6. Problem

Over customization and limited integration: CRM systems must map to your customer journey nuances and reinforce your sales, marketing, and customer service processes, and methodologies. Often these platforms are sold as the silver bullet solution toyou’re your needs. That said, over-customizing can make the system unnecessarily complex, difficult to use, and challenging to maintain.  

Solution

Just right customization and integration: Tailor the CRM system to your organization’s unique needs – but strike the right balance by testing and iterating. Your CRM needs to function as part of a broader company-wide infrastructure, which includes ERP systems, sales enablement platforms, learning experience systems, and marketing automation support. If your CRM system is treated as a standalone tool, or if integration is not well executed, you’ll be at risk for errors and inefficiencies. A slow and thoughtful approach at the beginning will allow your organization to make faster and sustainable progress in the future.

7. Problem

Lack of flexibility or ongoing support: CRM systems need to be adaptable to changing business needs. A system that is too rigid or difficult to modify in response to evolving demands will quickly become obsolete.

Solution

Continuous improvement: CRM implementation is a journey—not a one-time event but an ongoing process. Continuous support and maintenance are critical to its long-term success. If support is inadequate, the system can become outdated, ineffective, and irrelevant. Establish a dedicated team to address user queries, resolve issues promptly, and ensure system stability. Regularly review and optimize the system to align with evolving business requirements and changing customer needs. Gather feedback and continuously seek opportunities to improve and enhance the system's effectiveness. Ultimately, the success of any CRM system relies on user adoption. By communicating a compelling vision that creates alignment, involving stakeholders to drive engagement, developing the appropriate capabilities, driving the necessary mindset shifts, instituting a robust user support program, ensuring data quality, integration, and customization, and employing effective change management, businesses can experience a successful CRM implementation—and achieve their desired business results.

Understanding culture transformation

Culture transformation embodies the profound shift in the collective behaviors, beliefs, and mindsets of an entire organization. Culture should be intrinsically aligned with an organization's strategy, enabling every employee to understand and contribute to the strategic goals. Culture change is a transformation that touches and recalibrates every facet of how business is conducted. The need for culture transformation is sparked by a variety of catalysts, from technology advancements to market dynamics.

Why transformation is necessary

Organizational cultures can become obsolete, resistant to change, or even crippling to a company's ability to innovate or respond effectively to market shifts. A strategic culture transformation initiative is the lever that aligns the organization with its current and future goals. Unlike change, which is smaller in scale, transformation requires a bold vision and the commitment to walk the talk from every level of an organization.

Benefits of a positive culture

A culture that supports engagement, innovation, and growth is not a “nice to have” luxury but rather a strategic imperative. Studies consistently show that businesses with strong, positive cultures outperform their peers significantly in terms of financial performance, innovation, and long-term sustainability.

The role of leadership

Leadership has the single biggest impact on shaping and sustaining organizational culture. Leadership behaviors, decisions, and priorities set the tone for the organization and influence every aspect of the transformation process.

Importance of leadership in culture transformation

At the heart of this transformation is leadership development, where leaders are equipped to model desired behaviors, inspire their teams, and embed the cultural shifts necessary for achieving business objectives.  Leadership can make or break a culture transformation. Their commitment, visible actions, and strategic alignment with culture objectives are crucial to the success of this enterprise.

Strategies for leaders to promote culture change

Effective leadership is the axis upon which successful culture transformation spins. It demands resilience, accountability, and a deft handle on the change dynamics. Strategies that encourage resilience in leaders include:

• Embracing transparency in change communications

• Championing the transformation by example

• Nurturing a culture of continuous learning

• Honing emotional intelligence to navigate the human dynamics of change

Leading by example

When leaders embody and model the desired cultural attributes, it sends a powerful and inspiring message throughout the organization. Authentic, consistent, and humble leadership behavior significantly accelerates the culture transformation process, fostering trust and engagement among employees.

Change management and culture transformation

Change management methodologies serve as a scaffolding for successful culture transformation. Understanding and applying these principles can help navigate the complexities of changing deeply held organizational behaviors.

The connection between change management and culture transformation

Culture transformation is a particular form of change management that addresses the collective, often unspoken, rules that guide behavior within an organization.

Key principles and best practices for successful culture change

Applying change management principles, including creating a sense of urgency, fostering a clear vision, and enabling broad-based action, can enhance the effectiveness of culture transformation efforts.

Resistance to change is helpful

Resistance is a natural and valuable aspect of any transformation effort, providing crucial insights into potential obstacles and areas of concern. By examining the sources of resistance, organizations can identify underlying issues and address them proactively. Effective communication strategies and the involvement of change champions are essential in leveraging this resistance, turning it into an opportunity for engagement and improvement. This approach ensures that the transformation is more inclusive and resilient, ultimately leading to a stronger and more aligned organizational culture.

Measuring and sustaining culture transformation

A culture transformation initiative without the means to measure and sustain it is akin to sailing without a compass. Understanding what to measure and how to maintain momentum is important to the long-term success of any transformation initiative.

Metrics and indicators to measure culture transformation success

Quantitative and qualitative indicators, from employee engagement scores to the consistency of cultural messaging, can provide insights into culture change and its impact on the organization.

Strategies for sustaining culture change

It is essential to maintain consistent and open communication to keep employees informed and aligned with the cultural vision. Regular feedback loops and recognition programs help reinforce desired behaviors and celebrate progress. Additionally, embedding cultural attributes into everyday processes, such as performance evaluations and leadership development programs, ensures that the culture remains a central focus. Finally, involving leaders at all levels as role models and advocates for the culture change fosters a supportive environment that encourages ongoing commitment and adaptability. By integrating these strategies, organizations can create a resilient culture that evolves with their strategic objectives.

Recognizing and celebrating culture transformation milestones

Acknowledging and celebrating incremental successes can bolster the morale of change agents and the broader organization, reinforcing commitment and investment in the cultural change journey.Culture transformation isn't a single brushstroke; it's a series of careful, deliberate strokes that gradually unveil the canvas of the future. It's about cultivating a culture that not only adapts to change but is the change agent itself.Leaders and executives bear the mantle to drive this transformation forward. By recognizing the urgency, embracing the process, and embodying the change, they pave the way for organizational resilience and prosperity.

HR Daily Advisor editorial...In a rapidly changing work environment, organisations grapple with retaining quality talent amidst an exhausted workforce, shrinking budgets, and an uncertain economy. The desire to stick around is decreasing among employees.According to Gartner, employee attrition averaged around 20% in 2022. The evolving landscape of employment—characterised by a surge in remote working, the loss of critical knowledge due to an aging workforce, and a demand for purpose-driven roles—underscores the need for a fresh approach.In fact, purpose has arisen as an important driver for employees because it connects individuals to their companies.Traditional development systems no longer suffice. Instead, companies must democratise and personalise learning at scale, fostering a culture that aligns with both individual and organizational purposes. While 83% of business leaders agree that development is important at every level, only 5% of businesses have implemented development initiatives at all levels.As jobs and careers undergo transformative shifts and the lines between global and local blur, businesses must adapt. The significance of a purposeful learning culture, its impact on retention, and practical strategies for its implementation become paramount.It’s not just about equipping employees with skills. It’s about giving them a reason to stay, grow, and thrive.Here are three steps for implementing a learning culture throughout an organisation...

Step 1: Aim For Personalisation in Corporate Learning

The world of work progresses at a breakneck speed. To keep up with change, employees and teams need to consistently reskill. Though investments in learning and leadership development are at an all-time high, 70% of employees surveyed by Workplace Intelligence feel unprepared for the future of work.One size doesn’t fit all when it comes to learning. Personalisation enables learners to focus on areas where they need the most improvement, allowing for targeted skill-building and efficient use of time and resources. This requires a blended and modular approach to give all learners access to training and materials at the right moments to unleash their potential.Sadly, many learning programs prioritise ease of implementation and compliance, employing a rigid design suited for traditional learning academies and generic perspectives. Modern learners demand flexibility, including full access to quality materials, opportunities for exploration, and learning from others.Democratising materials and personalising learning at scale across verticals can be challenging. However, adopting a more self-directed, human-centered approach is vital for the future of learning. Embracing technology to make learning tools and experiences accessible and relevant to everyone empowers workers to cultivate their skills and foster a stronger connection to their companies, reducing turnover.

Step 2: Create Ownership of Learning and Reward Curiosity

With a learning culture, every member of an organization must lead by example. It’s not enough to 'sell and tell' a learning strategy. People—including the executive team members—need to know the 'why?' behind learning.All must feel a deeper commitment to the outcomes and impact of knowledge improvement. Individuals must perceive and experience the rewards of investing time and energy in learning.For instance, when everyone develops their business and technology acumen, the path to digital transformation becomes smoother. Corresponding productivity gains benefit both employees and the business.The cause and effect of learning on business results must be highlighted and rewarded.Rewarding curiosity goes beyond praising and promoting those who show eagerness to learn. It also involves cultivating an environment that nurtures critical thinking, where debates and voicing opinions are encouraged, even if it leads to disagreement. As an added advantage, transparency in learning and development fosters psychological safety. Employees understand that they are encouraged to enhance their skills and won’t face penalties for applying newly acquired knowledge, even if the outcomes are unexpected or undesirable.Rather than fearing excessive innovation, employees will be motivated to present novel strategies. Ultimately, this strengthens their connection with their work and the organisation’s culture.This doesn’t mean that there shouldn’t be a balanced perspective between learning, testing, and relearning. An organization’s strategy and culture need to be mutually reinforced by means such as finding an equilibrium between accountability for progress while allowing the experience to be rich in positive, authentic coaching and feedback.

Step 3: Design Learning Portfolio Offerings Rich in Community, Experiences, and Content

More than 50% of employees who work remotely at least some of the time say they feel disconnected from their colleagues. Compounding this feeling, many learning strategies actively scale out human connections through technology. A well-balanced learning and development strategy will stimulate a learning culture when it optimises for the right mix of three key things: community, experience, and content.

• Communities are the best way to deliver lasting change because they create a connection between people and accountability
• Experiences are one of the most effective ways to disrupt mindsets and create the capacity to change
• Content is the foundation for guiding and reinforcing perspectives and ways of working

Getting this balance is critical and should be the top priority for any learning organisation.One method of determining if participants are finding meaning from a learning portfolio is by measuring the impact through employee engagement surveys and similar vehicles. Together, the vehicles should measure three categories: the head, the heart, and the hands. In terms of the head, measurements should identify if the learning unlocks people’s intelligence so they can contribute to the company’s mission of outstripping the competition.When it comes to the heart, the measurement should reveal whether employees are happy. As for the hands, the measuring device needs to indicate whether training has prompted productivity and performance.Most companies accept that training their people is essential. However, far too many leaders haven’t changed their learning and development focus in years. That’s a liability in a modern labour market where talented individuals are quick to switch jobs.The better way to ensure more retention and higher engagement is to invest in purpose-rich training that benefits all parties and creates a dynamic learning culture.

In today's business landscape, change is a constant. Thriving organizations know that they need to focus on equip their employees with mission-critical skills. Business simulations are quickly becoming one of the most effective methods for businesses to train, align, and transform workforce culture and capabilities. Custom business simulations are designed to mimic the real-life scenarios that an employees will encounter, effectively preparing them for real-world situations.So, what makes business simulations so effective?Realistic scenarios. One of the main reasons why business simulations are so effective is that they engage employees in realistic, relevant, context-based scenarios that allow for safe practice. Simulations allow teams and individual contributors to develop skills that need to be high-performers in their roles. As a training method, simulations enhance a leaders ability to think critically, make quick decisions, and solve complex problems.Active engagement. Employees who participate in business simulations are active participants. They are not just sitting and listening to a lecture; they are actively working through problems and putting their skills to the test. This level of engagement is critical for ensuring that the information presented is retained and used when needed.Instant feedback. Business simulations provide real-time in the moment feedback. Employees experience constant feedback as they work through the simulation exercises, equipping them with the critical information they need to improve their performance in real-time. Immediate feedback allows for necessary course corrections and ensures that the learning process is effective and transformational.Risk-free learning. Simulation provides a safe space for employees to experiment where they can try new things without fearing the repercussions of making potentially costly mistakes. Immersed in learning, employees are able to learn from failure without risk or repercussion, which is essential for new skill development and improved performance.Teamwork and collaboration. Business simulations almost always involve teamwork and collaboration. As they working together, employees develop an understanding of how to collaborate and work as a team effectively. These interactions create critical opportunities for peer-to-peer learning and allow leaders from different parts of the organization to learn from one another and subsequently better understand and appreciate differing perspectives.Business simulations are one of the most effective methods of employee upskilling in today's corporate world. Simulating real-life business scenarios fosters active engagement, provides critical feedback, offers a risk-free learning environment, and encourages teamwork; they are an indispensable and game-changing training tool.

This article was originally published in Sales & Marketing Management.

‍The ability to accurately forecast results and behaviors has always been fundamental to business success. If a company can predict future outcomes, it will be able to leverage its skills and opportunities to increase revenue and make progress against its goals.

Greater predictability leads to more effective budgeting and planning so that leaders and teams can make decisions with greater confidence. For instance, if a company can accurately forecast the response of different demographics to its ongoing sales campaign, it can dynamically allocate resources to capitalize on these insights. This adaptive approach allows the business to optimize the performance of current campaigns and fine-tune the services offered, potentially opening pathways to introduce other products.

From a weekly to a quarterly to an annual scale, from market trends to supply chain visibility, predictions can help teams plan for success. This is always the case in business, but it is even more important today, as greater agility is needed due to changing circumstances.

What stands in the way of accurate sales forecasting?

Improving the accuracy of sales forecasts and building predictable revenue are top-of-mind challenges for chief revenue officers, and this pressure filters through the organization. So, what stands in the way? Why can’t teams find the predictability they need?Often, the problem comes from inaccurate assessments of deals. Sellers often do not correctly assess the size and the timing of the deals they have entered into their CRMs. They may not have adequately understood their clients’ needs or budgets.Another problem is misunderstanding signing authority. Often, a seller will misjudge the level of authority they need to close a deal. They’ve been talking to a mid-level leader who seems eager, not realizing that they will need stakeholder alignment and signoff from a senior executive in order to close. They may also need to get multiple peer executives to sign off on the purchase if the budget is not clearly owned by one buyer.A third issue that stands in the way of accurate forecasting is “super seller syndrome.”

How super seller syndrome hinders predictability

Super seller syndrome happens when sales leaders are promoted into their new roles not because they are great coaches but because they are themselves high achievers as sellers. The company needs sales, but the super seller may not have learned how to motivate, engage, and cultivate the introspection needed to effectively drive the team’s success.A team that prioritizes super sellers for promotions tends to suffer further down the road. Talent development stalls because leaders focus on selling rather than coaching, leading to a diminishment of other crucial skills like account planning, customer experience, and relationship management. Average sellers become disconnected, and trust disappears.

Make more accurate sales forecasts

People need strategies to create more predictability in their processes. This is especially true for sales teams and for the super sellers attempting to guide them.

Leverage AI for real-time coaching

AI is here for you now. It is a tool with broad applications and is getting safer and more advanced all the time. Sales teams can use AI in coaching and training situations to give sellers personalized, data-driven advice in a way that feels nonjudgmental and actionable. The advantages of real-time feedback are many. It can help leaders make their coaching more nuanced, help sellers gain control over deals, and turn customer insights into continuous learning opportunities.

Turn super sellers into super coaches

Selling skills don’t always translate into sales leadership skills. You can create greater forecasting accuracy by empowering leaders to develop the sales talent in their teams. This will include sales coaching, but it will also extend to communication skills, relationship management, the ability to use AI tools and integrate them into a CRM routine, and more.

Implement an opportunity summary sheet

A custom opportunity summary sheet can help sellers review and assess large and complex deals more accurately. Include technical, architectural, and service elements of the deal in the summary, and run this by the pre-sales team. Every deal at the proposal stage must then be examined by leadership to validate size, timing, negotiating points, and stakeholder signoff.

Build a culture of practice

Doing something more often creates a greater level of accuracy and predictability. A golfer who practices putting every day will develop an accurate sense of where the pin is and how hard she’s hitting the ball toward it. Practice the different sales stages — discovery, qualifying, negotiating — to give sellers opportunities to hone their skills in an accessible, low-pressure way.

Reward early, active CRM use

In some organizations, sellers wait until very late in the process to put deals into their CRMs. This may be due to an expectation of harsh feedback from leaders or an attempt to avoid the appearance of failure. A better way is to examine and encourage pipeline health at all sales stages. Sellers should learn lessons from losses, and the company needs to accept that if it is not losing, sellers are not taking necessary risks to grow the business.By addressing the factors hindering predictability, leaders can guide their teams toward success with visibility, clarity and purpose. The world is shifting as we speak. However, if teams can develop a culture of adaptability and togetherness, they will be able to spot the way forward.

Authors:

• Bhavik Modi, Senior Director, Innovation and Digital Transformation at BTS
• Dr. Annette Hofmann, Director of the Lindner Center for Insurance and Risk Management at the University of Cincinnati, author of The 10 Commandments of Risk Leadership, and Editor-in-Chief of the Risk Management Insurance Review (RMIR).

Dr. Annette Hofmann is a researcher, author, and leading expert in the field of organizational risk. In this interview with Bhavik Modi, Senior Director, BTS, Dr. Hofmann explains how moving beyond a traditional approach to risk and developing risk leadership competence can help companies become more resilient and profitable—and may even save lives.Bhavik Modi: Dr. Hofmann, I’ve been fascinated to explore your research into risk in relation to the healthcare and insurance markets, and to industry in general. Under your leadership as director, the Lindner Center for Insurance and Risk Management is doing fantastic work in researching and collaborating with industry. BTS is excited to be partnering with the center on a new course based on your research. Thank you for agreeing to discuss your insights with me.Modi: I’d like to start with defining terms. Organizations have traditionally focused on risk management. How is this different from risk leadership?Dr. Annette Hofmann: Speaking specifically about the insurance industry, risk professionals are typically trained to think in terms of established concepts of coverage—additional insureds, medical payments, etc. They use risk maps or ratings to classify different risks and then evaluate them to find an appropriate risk-management technique. They focus on the mechanics, the quantitative aspects, of managing risk.Risk leadership addresses not just the quantitative but also the qualitative aspects of dealing with risk. This requires risk literacy. Understanding individual risk perception, risk aversion, risk perception-related behavior, and how emotions respond to risk and the cognitive biases that result is crucial to developing the risk literacy that enables better decision-making. This understanding is especially important for leaders, as their decisions have greater consequences. Risk leadership also requires communicating about risk, providing direction and guiding the company through tough times by coordinating efforts to deal with major risk exposures, anticipating opportunities to avoid risks, and implementing a risk-related strategy to ensure long-term success.Modi: Often, risk leadership is associated with the insurance or actuarial professions. How can this concept be applied to organizations in other industries?Hofmann: Many new titles have emerged in the past decade—Chief Risk Officer (CRO), Director of Risk Management, Vice President Risk Services—demonstrating a broad recognition that risk management deserves to be a top priority. The challenge is to move from competence in risk management to true risk leadership.In The Leader’s Brain, Wharton Neuroscience Professor Michael Platt describes how key areas in our brain work and how insights from this can be used to teach us how to develop better leadership abilities. He writes that while it’s difficult to train people in some areas, such as ethical decision-making, improvements in risk literacy are relatively easy to accomplish. The task consists mainly of acquiring knowledge about the risk-related biases our brains are commonly exposed to and gaining insights into how these biases can be avoided. Understanding the hidden forces that drive our decision-making processes under risk and uncertainty, we can be trained to make more rational decisions.Modi: What is the “uncommon sense” when it comes to risk leadership? What behaviors are well understood but often not put into practice? Or which behaviors are counterintuitive to how we would traditionally think and work?Hofmann: Managers are often seen as having sophisticated information-processing capability, as being able to make rational risk-related decisions based on economic incentives and the fullest available range of information. But managers are human beings, and like all of us, prone to biases and cognitive mistakes when they interpret risk-related information. These mistakes, together with emotions, hinder the objectivity of their decisions, which ultimately may hurt the financial survival of their firms.For example, the lack of objectivity prevents managers from identifying and taking into account secondary risk effects, which is when avoiding or trying to mitigate one risk creates another risk. Risk leadership means not only seeing the potential for secondary risk but also communicating throughout the organization how this is influencing the decision-making process.Consider the case of a U.S. manufacturer that recently experienced a small explosion leading to worker injuries. The company decided, following pressure from employees, to stop producing the part that was responsible for the explosion. Consequently, the part is now being imported from a Chinese supplier. Was this a wise decision? Well, the risk of another explosion is avoided, but now there is a secondary risk: the imported part could be defective; it might be delivered late or not at all. The decision to stop producing the part now creates supply chain risk.Good risk communication, letting employees know about the very small risk of explosion and the firm’s efforts to prevent a recurrence while continuing to produce the part, might have been a superior strategy for the company.Modi: How much of risk leadership is preventive versus reactive? And what are the consequences of poor risk leadership in a reactive or preventive situation?Hofmann: When it comes to reactions, one of the best illustrations of poor risk leadership can be found in the behavior of government officials following the terrorist attacks of September 11, 2001, killing almost 3,000 people.Officials did not provide the public with information about this type of risk that may have headed off a misguided reaction. After 9/11, many people used a car to get to another city or location far from their home rather than taking an airplane. Because driving is so much more dangerous than flying, this switch resulted in an estimated 1,600 more fatalities in the U.S. in the year following 9/11 than would have occurred if people had continued with their previous plans and patterns of travel. Our ability to make decisions based on factual probability data is often influenced by our fears and emotions following big events like the terrorist attacks, and policymakers did not address this effect by communicating potential second-order risk effects to the public.When it comes to preventive risk leadership, people often neglect the potential occurrence of natural disasters by adjusting their subjective probability judgments.People tend to prefer insuring against a high-probability-low-consequence risk such as a bicycle theft, over a low-probability-high-consequence risk, such as a flood. They purchase add-on coverage to the homeowner's insurance policy to cover the risk of bicycle theft rather than covering the risk of loss due to flooding.Studies of insurance demand suggest that individuals tend to ignore or undervalue low probability events.However, after a catastrophe occurs, people suddenly think this will happen again soon and then decide to purchase coverage, which according to probability they are less likely to need the following year. A preventive risk leadership approach would be to inform people about this misguided behavioral pattern and incentivize them to purchase catastrophe insurance before something happens.Modi: It’s clear that developing risk leadership requires a dramatic shift in thinking, including a recognition that, as you say in your book, we are not rational in the face of risk. Change is hard. Why is it worth it for organizations to make this change?Hofmann: Risk leadership enables organizations to identify, and therefore eliminate, the cognitive biases that lead to bad decisions. This needs training and I am happy to help – but of course I am human and therefore my decisions are also far from perfect. Training in risk leadership will lead to better decisions and better communication of those decisions, and ultimately to more profitability and greater long-term success of a company.

Filmed and produced by Acumen Media as part of ‘The Forum Interviews’ series. For more information please visit: AcumenStories.

We help the world’s companies evolve towards a simulation culture

The concept of a simulation culture, which has long been harnessed by the tech industry, is now rapidly making its way into the mainstream business landscape. Simulation culture is an integral part of how high-performing teams find success. It is a philosophy of work, built on the idea that playing out scenarios, institutionalizing preparation, and role-playing future moves drives better decisions, improved ways of working, more profitable projects, higher win rates, closer client relationships and bottom-line growth.

Simulation culture has reached a critical point in its evolution because of the confluence of three factors. One is the explosive growth of artificial intelligence combined with high performance computing abilities which can now make simulation-based practices more immersive and accurate, and therefore more powerful. The second is macroeconomics forcing more frequent and rapidly evolving business cycles that are demanding business model adaptability. The third is a disappointment in the impact of most training as not being relevant enough, real-time, or at scale.

At BTS, our work with companies over the last thirty years has put us in a unique position to solve this challenge. From our origins in business simulation to our work today helping the world’s leading companies create change and transformation at scale, we understand what it takes to build a simulation culture and up the performance of teams every day.

Take our work with a global technology company. According to their EVP of Global Enablement, “We are a rapidly evolving, high-growth company. Our go-to-market strategy is always evolving. It’s critical that we bring our employees, particularly our customer-facing employees, along for the ride, in a meaningful and impactful way.” The answer to this was simulations. Through simulations and micro-simulations, employees across the enterprise got to experience different perspectives on the various parts of the business. People from different departments got to try new things, test out creative ideas, and fine-tune potential decisions by accessing real-time data and adjusting their approaches in a safe environment.

We worked with the company to embed simulations in four key ways: to connect with customers; kick off a sales year; prepare leaders for taking on C-Suite roles and evolving the company; and provide real time wisdom sharing to embed the lessons learned at scale.

The impact has been revolutionary to enabling the company’s go-to-market transformation. Organizationally, the company has found that implementing a simulation culture has led to greater alignment. With over 70,000 team members, group simulations allowed coworkers to practice cross functional teaming, prepare for inevitable moments of tension on a big initiative, and inspire each other to act in a way aligned with delivering on the company’s promise.

In summary, the trends that have created the environment for the rise of simulation culture – AI, macroeconomic disruption, and the need to pivot and scale new ways of working, fast – are only going to continue to demand more of leaders and their organizations. We look forward to partnering to lead the way.

Today, businesses have access to endless data and analytics that enable informed decision-making. Despite the abundance of measurement resources, critical decision making remains challenging for leaders. While drawing on past experiences and intuition is helpful, it can also be risky as the pace of change accelerates infinitely. Bridging the gap between strategy and execution, simulations are the secret sauce that future-ready organizations are pouring into their learning cultures. In this post, we'll explore the advantages of using simulations to influence business decision making and how they can help organizations stay ahead of the curve.

‍Simulations reduce risk and cost

‍Simulations allow businesses to predict the outcome of various scenarios without having to take any remissible action. When leaders participate in simulations, they gain new critical insights that help them with scenario-planning and alignment. Simulations are a tool through which businesses can easily identify potential roadblocks and pitfalls before committing large amounts of resources or funds.

‍Real-world simulations provide real-time feedback

‍Simulations are designed to mirror real life workplace situations; they make it possible for individual contributors to test a myriad of scenarios safely in a controlled, risk-free environment. By running simulations, decision-makers can get real-time feedback on their decisions that boosts confidence and promotes creative problem-solving. As an opportunity for practice, simulation helps leaders to build a learning culture that promotes better-informed decision-making practices that are more likely to yield positive results.

‍Employee growth

‍A safe and controlled simulation environment creates an opportunity for employees to level-up and practice better decision making, communication, and collaboration. This experience prepares teams to handle challenging, unforeseen situations in the with confidence. As participants engage in the simulated experience, they are able to “learn-by-doing” and practice new techniques and methodologies that they can bring with them into their day-to-day operations.

‍Increased productivity and support of strategic planning

‍Simulations help to increase productivity by providing nuanced insights. This tinkering promotes skills that help top teams quickly identify the best course of action in any given scenario. Simulation helps streamline business process, resulting in increased efficiency, reduced costs, a more productive workforce, and effective long-term strategy formulation and deployment.

‍Improve communication

‍Simulations are a great tool to help decision-makers communicate more effectively in cross-functional collaboration scenarios. Leveraging this technology helps managers learn to effectively to share better data stories across team boundaries, improve collaboration, and overcome communication barriers. Simulations also bring transparency to your decision-making culture, which helps stakeholders throughout the business feel aligned and to the greater vision, mission, and strategy of the organization.

Using simulations to make business decisions reduces risk, saves time, and improves communication broadly. These competitive advantages gained through simulated practice help organizations make informed decisions in a variety of scenarios to ultimately realize the best path forward. The future of business decision-making relies on simulation. Without it, making informed decisions that improve productivity, efficiency, and, ultimately, profits will become increasingly impossible. Are your stakeholders ready to lead your organization into a thriving future?  Consider your simulation strategy as the cornerstone of that preparedness.