“Simulation Scorecards as Drivers for Calculating ROI in Addition to Feedback” By Ken Spero- Serious Play Conference 201

1. Simulation Scorecards as Drivers for Calculating ROI in Addition to Feedback Serious Play Conference August 22, 2012 Presented by: Ken Spero

2. Today’s Session Outline In this session we will address the following issues relating to Scorecards and ROI: 1. Understanding the value of Simulation 2. The role of the Scorecard in Sim 3. Experience Design Methodology 4. Balanced Scorecard 5. Building the Business Case – ROI 6. Look at and Play a Sim (if we have time)

3. Why use Simulation? Experiencing Best Practices Enables Critical Thinking

4. Why use Simulations? Experience is the best teacher Sims provide experience (emotional engagement with environment) Sims expand the evocable experience base, they become part of your experience portfolio / “gut”. Sims consequate Mindlessness and encourage Mindfulness Sims provides an opportunity for participants to learn from failure, to Fail Forward Sims enable time acceleration to feel consequences Sim leverages the power of storytelling (context)

5. When Sim

6. Experience Design: Authoring Simulations (Introducing the Assignment) Establish the Narrative (something that can be re-used – Anchor Story) 1. Clearly define a problem / Target Learning Objective a) Articulate the desired experience and outcome b) Timeline and flow c) Create Measurable Scorecard: Goals and Boundaries d) Establish Context: Environment / Storyline / Cast e) Start with ‘Golden Path’ f)

7. Experience Design: Authoring Simulations (Cont’d) Articulate and Prioritize Key Learning Objectives 2. Write a Scene from narrative that reflects each of the selected Learning Objectives 3. Articulate Alternatives/Choices/Feedback 4. Lay out scenes in the flow of the narrative 5. Determine Memorable and Realistic Consequences 6. Add intros and outros 7. Score Choices – Link to Objectives in a Measurable way 8.

8. Simulation Scorecards Scorecards are a very powerful component for both: Feedback Authoring Especially when there are tradeoffs between the different objectives or between different stakeholders

9. Example – Project Leadership Interpersonal and organizational aspects of projects Focus of Sim on both Team and other Stakeholders Team Scorecard – Focus – Motivation – Skill Development – Buy-in/Commitment – Productivity – Innovation – Communication – Leadership Organizational Scorecard - Customer Satisfaction - Management Satisfaction - Perceived Product Quality - Team Total - Project Total - GANTT Chart (Scheduling) - Budget

10. The Balanced Scorecard Methodology Start with a business problem that needs to be addressed – this is the underlying reason driving the need for the training If we are able to solve this problem, what will I see change or benefit or how does the problem we are trying to fix manifest: – From a Financial perspective – With respect to my Customers and their Satisfaction – With our Internal Management Processes – With our ability to Innovate and Grow

11. Linking the Scorecard and ROI Back to the business problem … When it comes to ROI it is helpful to consider where the potential returns will come from with respect to solving the Business Problem: – Quantified Business Benefits – Avoided Costs and Reduced Risk – Cost Changes

12. Developing the business case Determine how and where the issues manifest at their most compelling level by examining the: Benefit – Beneficiary Matrix – Benefit - What is the nature of the problem: improved – Efficiency, Effectiveness or Innovation – Faster, Better, New – Beneficiary – Where is this most compelling place to measure: Enterprise, Group or Individual

13. The Balanced Scorecard Methodology Start with a business problem that needs to be addressed – this is the underlying reason driving the need for the training If we are able to solve this problem, what will I see change or benefit or how does the problem we are trying to fix manifest: – From a Financial perspective – With respect to my Customers and their Satisfaction – With our Internal Management Processes – With our ability to Innovate and Grow

14. Break Down Balanced Scorecard to Measurable Components Identify observable behaviors that demonstrate the scorecard items – these might be specific competencies relating to the business problem or

15. Define Units of Measure Identify units of Measure - from Benefit/Beneficiary Matrix Individual Level – Productivity – units/day – Sales productivity – won/loss ratio Group Level – Sales org productivity – cost of sales – Workgroup productivity - # of staff – Improved Customer Service – number of complaints Enterprise Level – Improved Product Quality – defect rate – New product capability – volume of new products/year – New market entry – volume of new markets/year

16. Do the Math Use the units of measure to quantify benefits and/or avoided costs and think about it over time Compile the expected cost of development and deployment Establish a baseline cost – ‘what if we did nothing…’ Also determine what you are competing against (i.e. an alternative approach or some other usage of the money) Find someone to help with the calculations, if you need it, based on the expected complexity of the numbers and metrics

17. For More Information • Contact: Ken Spero (215) 565-5598 KSpero@NEXLEARN.com www.ImmersiveLearningU.com

18. Useful Links: www.seriousplayconference.com www.seriousgamesdirectory.com www.seriousgamesassociation.com Contact: sbohle@seriousgamesassociation.com