For the Best Business Acumen Development, Avoid Navel Gazing

[caption id="attachment_1063" align="alignright" width="200"]

In this Gotchas Series, I’m writing about the top 12 ways a business acumen simulation can go wrong.

Near the top of the list:

Excessive navel-gazing.

Here’s why focusing too much on your own company can limit learning and decision-making.

Focus on the Industry, Not Just the Company

You want participants to understand your business, so the simulation should reflect key industry dynamics.

But how much should the simulation model your company’s unique situation?

The right balance matters:

• If the simulation explores a range of strategies, learners develop critical thinking and see the bigger picture.
• If it focuses on one company’s specific strategy, learners may miss the reasons behind those decisions—and struggle to adapt when circumstances change.

Encourage Buy-In Through Big-Picture Thinking

A highly customized business simulation can:

• Model a known problem.
• Prescribe a set solution.
• Drive short-term alignment.

However, this approach limits creativity.
When the problem shifts or the learner moves to a different role:

• The learning loses its relevance.
• The participant struggles to adapt.

The Value of a Generalized Industry Model

The alternative is a more generalized model that:

• Highlights core industry dynamics—like cost structure or competition.
• Demonstrates fundamental financial concepts—like cash flow and profit management.

In this kind of simulation:

• There’s no single correct answer.
• Multiple strategies might succeed—if managed well.
• All strategies will fail if managed poorly.

This approach fosters critical thinking and helps participants:

1. Understand the broader industry landscape.
2. Grasp the rationale behind management decisions.
3. Respond more effectively when circumstances change.
4. Generate creative, well-grounded solutions in new situations.

Key Questions to Ask

Before choosing a business acumen development program, ask yourself:

• Is the simulation relevant to my industry?
• Does it explore multiple strategic options?
• Will participants understand why decisions are made—not just what decisions are made?

If the simulation is too company-specific, it may foster navel-gazing.
And when the market shifts, that learning won’t help your teams adapt.

‍