Palo Alto, February 1995
The room is cramped and overheated, and the atmosphere tense. Two groups of executives, representing two "companies", are deep in discussion. The problem for the two management teams is that they have a common enemy, a company that has managed to get a grip on the market and is now squeezing them out. As they discuss the pros and cons of a defensive merger, they are joined by a third company, and suddenly there's talk of a three-way merger.
The managers of the dominant company, preoccupied with the problems of their large clientele, are unaware of all this, but are approached by a small, niche company, with a large knowledge base, and they suddenly realize that what looked like being a smooth ride, is now developing into a much more threatening scenario.
I am 'facilitating' this game, and I start to get worried. We are only up to year three - not half -way yet. Where is this simulation headed? What am I going to do, if they decide to merge with each other? This is the fastest-thinking, and most dynamic group I have ever run the simulation model with; they are the top people in Hewlett-Packard's Consultancy Division.
I feel compelled to call 'time out', and explain to them that they have broken the bounds of the model, and it is pointless to continue with the simulation. I propose, instead, that we have a detailed discussion of what they have learned, and how they can apply the lessons in their work. The President picks up the gavel. My fears prove groundless. Less than half-way into the game, they have seen all they needed, and proceed to pick their present strategy to pieces, and re -construct it in "Tango" terms.
They draw up activity lists, assign responsibilities, and set reporting schedules. It is a very impressive performance that takes barely three hours.
Later on, I follow up the exercise with their President and a couple of other executives. What they felt was most important was that the simulation had taught them a strategic language.
"We have discovered, for the first time, that we can talk strategy among ourselves, and be sure that we mean the same thing, even though we come from different cultures, countries and disci plines." Karl-Erik Sveiby
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