What is a business game and why is it suitable for employee development?

Learning in business games is based on the principle of “learning by doing” and is therefore primarily self-directed. The independent development, application and repetition of content ensure that participants actively engage with the learning content and internalize what they have learned.

Practice and repetition are important in order to be able to apply the acquired knowledge in future situations. It therefore makes sense to divide the simulation into game periods in which participants can test, reflect, and repeat. In this way, content is linked in the long term and transfer to reality is supported.

In addition, simulation games represent an environment in which making mistakes does not have far-reaching consequences. Thus, participants learn from their mistakes and failures without having taken a real risk.

Through the system of “game-based learning,” players in the business simulation learn interactively and are motivated by the competitive environment. This promotes ambition and enthusiasm. The game-based approach ensures that content is conveyed in a practical, effective and at the same time fun way. Fun and enjoyment motivate intensive engagement with the learning content.

The mixture of education and entertainment – also called edutainment – has a positive effect on the learning process. Learning should and must be fun, because this positive emotion results in higher motivation, more sustainable learning results and is also much easier to stick to for most people.

The idea of teamwork and competition plays an important role in business games. This is because the existing competitive situation as well as the exchange and acceptance of responsibility in the group promote the motivation to learn. Intensive discussions and joint decision-making train the participants’ ability to work in a team. Successes and fun strengthen the team spirit and motivation.

However, conflicts, disagreements and failures in the competition are also part of the process and not only strengthen social skills such as the ability to take criticism and deal with conflict, but they also lead to more intensive discussion. Emotions have a positive effect on memory performance and ensure that learning content is remembered in the long term.

In business games, the players deal with learning contents independently. They are challenged to develop their own methods for solving problems and to make decisions. This promotes an independent and self-organized way of working. Self-confidence and personal responsibility, as well as a high level of frustration tolerance and resilience through challenges or even failures during the game are strengthened. Hence, in addition to social skills, personal skills are also improved.

By managing a fictional company, participants take an overall entrepreneurial perspective. In business games, a realistic and dynamic market environment is simulated in which decisions can be made without risk. Participants are trained to think and act in an entrepreneurial, holistic, and cross-functional manner and thus gain an understanding of economic interrelationships. Business contexts and the consequences of decisions within the company become tangible. The entrepreneurial spirit of the participants is awakened.

In business management games, learning is mainly self-directed. Therefore, additional support is needed during the learning process in terms of qualified tutoring. Participants must have the opportunity to discuss questions relating to their specific decision-making situation in a prompt and individual manner. Additional support during the learning process by qualified feedback from trainers and comprehensible support materials is therefore crucial.

Mistakes are part of business games. However, long-term failures during the game have a demotivating effect and prevent a successful learning process. Trainers must always make clear that mistakes are part of learning. To ensure that failures do not have a negative impact, constant feedback is needed so that the learner can recognize progress and reflect on his or her actions.