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Decision Base®

During Decision Base participants are faced with many decisions including:

  • Can we reduce our overhead?
  • Can we limit the amount we purchase?
  • How can we obtain greater flexibility?
  • Should we sell the factory?
  • How can we reduce our stock?
  • Which products should we develop?
  • Is it really wise to borrow more money?
  • Why is there so little cash available?
  • How can we get our customers to pay more --and pay faster?
  • Which markets should we concentrate on?

At the beginning of the simulation, the fundamental requirements for running a company successfully are presented and discussed.  The participants' own experiences and current challenges are an important element here.  The ideas discussed are summed up in a number of "principles,"  which the participants are then asked to test in a simulation of real life.  The participants are divided into approximately six groups of four.  Each group runs its own company and tries to win new customers, in brutal competition with the others.  It doesn't take long for the participants to discover the need for:

  • control instruments
  • investments in production
  • profit and liquidity budgeting
  • and for monitoring their competitors.

Because the simulation model is highly realistic and tangible, all financial relationships are easy to see and all relevant information is readily available.  At the conclusion of the simulation, success is determined by each team’s competitive decisions and the impact of those decisions on the marketplace. The team with the most retained earnings wins -- just as in real life.

During the final debrief we help participants to explore how they can apply the things they have learn to their own operation.

 


© Pantelis, Inc. January 2000, Rev. February 2003

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