Imagine going to the emergency room and finding out you need your appendix removed. There are only two surgeons available. All you know about the first is that she has played the game Operation thousands of times. All you know about the second is that she spent more than 200 hours practicing in a surgical skills lab. Which surgeon do you choose?
The obvious choice is the second doctor. While Operation does require a steady hand (especially removing the funny bone), it’s no substitute for practicing actual surgical skills. The human body is dynamic and even a single wrong decision can be deadly. Doctors need to understand the consequences of their decisions before they work with live patients.
Why Business Decisions Need a Lab, Too
Like bodies, businesses are dynamic. And although implementing a poor strategy, communicating ineffectively, or making a bad decision won’t have life-and-death consequences, the impact can be quite significant. After all, what’s the cost of losing a high-potential employee because they don’t feel valued? What happens when 10 senior leaders leave for the same reason? How is a company affected when a sales and marketing strategy is pursued aggressively at the expense of R&D? How will a leader react when a venture upstart enters their niche market?
According to Gallup (2013), actively disengaged employees cost U.S. businesses between $450 billion and $550 billion annually in lost productivity. This staggering figure prompts us to reflect: If the stakes are so high, why aren't there more "labs" for managers and leaders to develop and refine their skills?
The Power of Business Simulations
Dynamic business simulations create these much-needed “business laboratories.” In these environments, managers and leaders can learn, experiment, and make mistakes—all without real-world consequences. However, like a surgical lab, business labs must go beyond basic skill-building to replicate the dynamics of the actual business environment. This means integrating strategy, financial acumen, and leadership in a way that feels relevant and realistic. With the proper context, leaders can see how their decisions ripple across an organization—and adjust accordingly.
Elite performers in all professions know the importance of learning from mistakes. By giving leaders the opportunity and context to learn and practice, today’s companies can rapidly and dramatically improve organizational performance.
References
Gallup. (2013). State of the American Workplace: Employee Engagement Insights for U.S. Business Leaders. Gallup, Inc.
