Thursday, October 10, 2013

Gamification: Should business take games seriously?

Gamification—the application of game-design principles to non-game situations—is gaining traction among businesses that want to engage employees and customers. But can games help solve critical strategic challenges? And can they actually address serious business problems?

Many companies are applying the essence of games—fun, play and passion—to real-world business situations as a way to influence behaviors in everything from back-office tasks and training, to sales management and career counselling. Using game attributes that resonate with their target audiences, companies can often achieve higher performance. That’s all well and good for employee and even customer engagement, but can businesses apply gaming principles to solve more serious challenges – like strategy development and innovation?

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Andre Hugo

Andre Hugo, Director, Deloitte Digital RSA

We talk to many companies that want to implement game dynamics to enrich training, staff engagement, customer service and loyalty programs. But gaming can provide an even bigger opportunity for the broader business strategy.

Generally, it takes decades for leaders to gain the knowledge, skills and experiences to effectively develop and apply business strategies. Even with mentoring and rotating management assignments, developing effective leadership skills usually takes years. However, game-like simulations can expose current and future leaders to many real-world business scenarios and accelerate their learning.

For example, one client was concerned that retiring Baby Boomer executives with decades of supply chain experiences would leave a knowledge gap within the organization. They were challenged to capture this institutional knowledge so less-experienced managers could gain access to it. Using executive insights captured through interviews, they employed a 2-D, scenario-based game that was designed to allow participants to make real-world business decisions and quickly see likely outcomes.

This game proved invaluable as a strategic management tool following the 2011 tsunami. Within 24 hours of the disaster, the game was remodeled to remove Japan from the company’s supply chain mix. Based on previous experiences already embedded in the game, managers simulated what they could do and couldn’t do, allowing them to respond quickly with a new supply chain solution.

Strategic games hold potentially large benefits for businesses. First, employees moving up the ranks can test management approaches in a low-risk environment and accelerate their learning. Second, managers have a tool that’s available round-the-clock to test drive decisions in a simulated environment before they commit to any real-world action. And that’s when using games can help people solve serious challenges. 

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