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Companies are increasingly using computer-based simulations to help their people learn what to do in challenging situations. According to a study by Accenture Ltd., those who learn by doing are able to retain 75% of the information taught, compared with a 5% retention rate from hearing a lecture and 10% from just reading the material. Simulations help people to learn the way they know best by allowing them to apply the information in practical situations.
These types of simulations have been used with astronauts and medical professionals for years to teach technical skills and expertise. However, a growing number of companies are using simulations to teach "soft skills" like sales calls and management techniques. Most of the simulations use simple animation or photographs to represent characters in the various scenes. They then precede a lot like a typical computer game. Learners are asked to make decisions based on information they are given. They are then shown the consequences of their decisions and actions. In this environment, they can fail without having to suffer real world consequences.
Pitney Bowes used a simulation developed by a company called Enspire to improve the performance of its district sales directors called Executive Challenge. 12 teams of six district directors led by a vice president pretend to run a Pitney Bowes sales division. The directors play themselves and are given a set of monthly revenue and profit goals (each "month" took about 20 minutes to run). Each team comes up with a strategy to meet their goals. The learners make decisions about how many sales reps to hire, and how much time and money to spend on training, searching for prospects, or researching best practices. After each "month" the results of their decisions are tabulated and compared with the other teams. For example, spending time and money on training sales staff would increase expenses and reduce revenue in one month, but would have long-term benefits. Pitney Bowes director of employee development says that the training has paid for itself many times over as directors have restructured how they run their districts for optimal results.
Other companies are using simulations to teach ethics and reinforce codes of conduct. Employees at Altria Group were put through a simulation that puts them into difficult scenarios like being invited to stay at a vendor's ski condo or having to report unethical actions. They are given the scenario and then asked to choose from a list of possible responses. Learners can't move ahead in the training until they are able to choose the correct response and explain why it is correct. Executives at the company claim the training is successful because even if the learners don't remember what they have been through in the training, they come away with the idea that ethics are very important to the company.
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