Business simulation is one of the most effective methodologies for developing leadership because it places participants in situations similar to real professional contexts: decision-making under pressure, incomplete information, teamwork, conflict, and real consequences. Its value lies not only in applying technical knowledge, but in the deep learning that emerges from experience.
Technical challenges and adaptive challenges
To understand what kind of learning is activated during a simulation, it is essential to distinguish between technical challenges and adaptive challenges, a distinction developed by Ronald Heifetz.
Technical challenges have known solutions and are addressed by applying established knowledge and procedures: interpreting financial statements, calculating indicators, or understanding the rules of the simulation. They provide structure and a sense of control that is necessary for learning.
Adaptive challenges, by contrast, have no single correct answer. They require changes in mindset, behavior, and relationships. In business simulations, they emerge when teams must make decisions with incomplete information, manage internal conflict, accept mistakes, or sustain motivation after poor results.
Simulation as a leadership laboratory
Business simulation acts as a laboratory where adaptive challenges become visible in a safe but intense environment. Teams that progress the most are not necessarily those with the strongest technical knowledge at the outset, but those that are able to reflect, learn from mistakes, and adjust their strategy. Leadership develops through continuous learning rather than perfect decisions.
Getting on the balcony: combining action and reflection
A key capability in adaptive leadership is the ability to “get on the balcony”: stepping back from action to observe patterns, analyze team dynamics, and question assumptions. In a simulation, this means going beyond immediate results and reflecting on how decisions are made and how the team works together.
The instructor’s role as an adaptive facilitator
In this context, the role of the instructor evolves. Beyond transmitting technical knowledge, the instructor facilitates reflection, asks the right questions, and helps participants identify whether they are facing a technical or an adaptive challenge. The goal is not to remove difficulty, but to turn it into learning.
Preparing leaders for professional reality
At CompanyGame, we use business simulations to integrate action and reflection, technical expertise and adaptation. In doing so, we help develop professionals who are prepared to lead in complex, uncertain, and constantly changing environments.