What role do business war games and strategy simulations play in higher-level strategy?
Great question. At one level, we could say that business war games and strategy simulations are another tool in the strategist’s toolbox; that is, they’re a way to develop and test strategy options. That’s a technological perspective: we look at the costs and benefits of war games and simulations, and we compare them to the traditional processes companies use. I think it’s a slam dunk for the appropriate problems — strategizing under uncertainty, new-product introductions, defending against competitive moves, evaluating strategy options — but I appreciate that the techniques are unfamiliar and can be technically confusing. In another sense, business war games and strategy simulations are at a very high level because they are all about how we think and how we lead. I don’t care what strategy comes out of the war games or simulations I conduct; I tell my clients that I don’t care if they zig or zag. What I care about, and I care about this a lot, is the quality of their strategy decision
