Denika Aguilar

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SIMULATIONS

• Denika Aguilar
• Michael Lark

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What is a simulation?

• Training method that represents a real-life
  situation, with trainees decisions resulting in
  outcomes that mirror what would happen if they
  were on the job.
• Advantages
• Disadvantages

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What is Income-Outcome?

• It is a family of business simulations that
  models real-world business drivers.
• It offers classroom based learning programs to
  develop business acumen, leadership and
  accountability.
• It helps to demonstrate every employee how they
  affect the bottom line.
• Andromeda Training created this program in 1996
• Structured in teams of 2 to 5 individuals

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Family of simulations offered1)Business Basics

• Experiential overview of how business runs.
  Employees learn how to fit pieces together and
  how their job impacts working capital and the
  bottom line.
• The program creates business visualization
  skills.
• Targets frontline employees, internal staff,
  support personnel and individual contributors.

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1) Business Basics Main Elements and Benefits

• Learning first starts with the following
  simulation board

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1) Elements and Benefits cont.

• It continues to use the board and applies real
  life problems, such as cash flows, inventory and
  falling prices.
• Also introduces change and innovation by
  improving a business dynamic.
• Employees get to see the big picture
• Employees learn how to read an Income Statement
  and Balance Sheet
• Helps employees make better choices in their
  everyday activities dealing with working capital.

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1) Business Basics Cont.

• The program runs in 4 hours
• Programs are presented by certified facilitators
  or your trainers (training certification is
  offered).

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2) Finance for Everyone

• Provides experience in running a business in a
  competitive environment.
• Includes setting prices, producing financial
  statements, monitoring cash flows, and planning
  for growth and profit.
• Programs is for anyone in the company

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2) Finance for Everyones Main Elements and
Benefits

• The program also begins with a simulation board

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2) Elements and Benefits cont.

• Teams control of their business by taking the
  initiative on pricing, capacity, marketing and
  borrowing.
• Decisions made in one department affect another.
• Employees are better able to take appropriate
  initiatives
• Employees communicate better with other
  departments quickly
• Employees experience a greater sense of
  involvement

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2) Finance for Everyone cont.

• The program funs in 8 hours.
• Connects classroom learning to real-world
  business.
• Taught by certified facilitators or your trainers
  (training certification is offered).

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3) Finance for Managers Sales Professionals

• Focuses on skill-building exercises in planning
  and analysis.
• Includes extensive marketing planning, cash flow
  forecasts, budgets, variance, break-even analysis
  and key ratios.
• Targets managers, account executives, and channel
  partners

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3) Finance for Managers Sales Professionals
Main Elements and Benefits

• Program begins with a simulation board

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3) Elements and Benefits cont.

• Requires teams to be competitive in all areas of
  business.
• Develop planning and analysis skills and gain
  practical experience in budgeting, targeting,
  forecasting, and using a variety of performance
  metrics.
• Ensures that teams prepare budgets, targets and
  forecasts
• Integrate cash flow planning with planning for
  sales, cost and profit
• Partner with customers and suppliers
• Plan across departments with clearer, faster,
  more accurate information
• Improved decision making

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3) Finance for Managers Sales Professionals

• Program runs in 16 hours
• Helps the knowledge for important decision making
• Taught by certified facilitators or your trainers
  (training certification is offered).

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4) Managing a Global Business

• This is the most challenging simulation in that
  it models the competitor-driven instability of
  the global marketplace
• Incorporates foreign exchange and hedging, tax
  structures, mergers, acquisitions, international
  variations in market drivers.
• Targets Senior Managers and Executives, Business
  Unit Leaders, and Strategic Planners
• Teamwork is crucial!

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4) Managing a Global Business Main Elements and
Benefits

• Starts off with the simulation board

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4) Elements and Benefits cont.

• Impacts the strategic direction of the company
• Each team has the opportunity to expand into new
  product lines, enter new global markets, develop
  quality initiatives, implement process
  improvements, and develop strategic alliances.
• Re-evaluate market, operational, and competitive
  positions
• Create plans that consider profit, cash flow, and
  strategic planning
• Provides a solid financial grounding, independent
  of the career path that has been followed to this
  point
• Raises individuals out of the product or market
  environment, and provides a global perspective

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4) Managing a Global Business cont.

• Program runs over a 3 day period (22 26 hours).
• The last of the simulation families
• Taught by certified facilitators or your trainers
  (training certification is offered).

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Transfer of Training

• Trainees effectively and continually apply what
  they learned in training to their jobs.
• Ensures that learning the simulation has worked
  effectively
• Includes
• Knowledge
• Skills
• Behaviors
• Cognitive strategies

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A Model of the Transfer Process
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Implementation of Action plan

• Action plan A written document that includes the
  steps that the trainee and manager will take to
  ensure that training transfers to the job.

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Action Plan

• Each employee should complete an Action Plan that
  includes
• Goals
• Strategies for reaching the goals
• Strategies for getting feedback
• Expected Outcomes

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Action Plan Contd

• Goals SMART (Specific, Measurable, Attainable,
  Realistic, and Time-bound)
• Strategies for reaching?
• Modifying behavior? (What will I do differently?)
• Resources needed (equipment, financial)
• Support from peers and managers? Feedback?

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Action Plan Contd

• Strategies for getting feedback include
• Meetings with peers, managers, self-monitoring
  process, and customer reactions
• Expected Outcome includes
• When I reach my goal what will be different?
• Who will notice the difference?
• What will they notice?

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Action Plan Benefits

• See themselves in the business and know how they
  impact financial reports
• Make better choices in everyday activities
  leading to reductions in costs, inventories, and
  working capital
• Look for shareholder value in their day-to-day
  decision-making
• Build beneficial relationships with customers and
  suppliers

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Action Plan Benefits contd

• Recognize the value of the customer
• Better serve internal and external customers
• Understand how profit is made and what they can
  do to improve bottom line results in their job
• Understand how and why their everyday decisions
  and actions impact other areas of the company