PriSim Business War Games Inc. Completes ROIC-Lab, an ROIC and EVM Business Simulation for the Aerospace and Defense Industry and Other Industries

Share Article

PriSim Business War Games, a premier business training firm, announced the completion of ROIC-Lab™, a scenario-planning educational tool for use in the aerospace and defense industry and other contracts-intensive industries. The simulation is based on PriSim's ground-breaking BizFighter™ aerospace and defense business simulation.

PriSim Business War Games, a premier business training firm, announced the completion of ROIC-Lab™, a scenario-planning educational tool for use in the aerospace and defense industry and other contracts-intensive industries. The simulation is based on PriSim's ground-breaking BizFighter™ aerospace and defense business simulation.

ROIC-Lab™ is a computerized aerospace and defense scenario-planning tool that helps employees from all levels and functions within an organization better understand the part they play in impacting Return on Invested Capital (ROIC). ROIC is a critical barometer used in many industries to analyze the level of profit generated by a company's assets. An offshoot of PriSim's successful BizFighter™ aerospace and defense business simulation, the ROIC-LAB™ "what-if" tool focuses on the important elements of driving ROIC in a contracts and Earned Value Management (EVM) intensive business.

The ROIC-Lab™ allows participants to run contracts and programs over several simulated years and to see first-hand the impact of operating-level decisions on ROIC and Earned Value. Participants adjust and monitor key areas of the business that impact ROIC including: contract performance; working capital levels; capital investment; liabilities; SG&A and overhead rates; and asset intensity. They then track the impact of their decisions on ROIC and on the Income Statement and Balance Sheet. Participants also directly manipulate program-level "levers" as well. Program-level performance metrics are then analyzed including Estimate at Complete (EAC), Cost Performance Index (CPI), and Schedule Performance Index (SPI).

The scenario-planning concept is of great value in highlighting critical measures to employees. The ability to not only learn the theory behind a particular measure but to also see it in action can be very valuable in creating lasting change at an organization. In addition, a sense of the ultimate control that each employee actually has over what might appear to be disconnected actions and decisions is provided. The interrelated nature of business decisions is brought into sharp focus in an interactive, complex simulation such as the ROIC-Lab™.

"The ROIC-Lab™ is an interactive tool that pushes people to really understand why ROIC is so important, and what their role is in actually improving it," says David Semb, a Partner at PriSim. "It's about working to understand what's controllable. ROIC is what the leaders of companies in the aerospace and defense industry track, and what analysts track who conduct valuations of companies in this industry. So it's critical that everyone at the company deeply understands the concepts as well. These types of scenario-planning tools are a very effective way to get people to see, not just hear, how these concepts work in the real world."

The ROIC-Lab™ is implemented as a 4-hour course that begins with an overview of fundamental ROIC concepts, then quickly transitions into a competition in which Teams compete to produce the best corporate and program-level results. The experience creates interactive "teachable moments" when the key drivers of ROIC can not only be learned but also can be seen in action.

The course has been delivered more than 60 times for over 1,000 participants, with plans to deliver a total of 80 courses for more than 1,700 participants by the end of 2007. Classes are conducted by client staff from the Financial Planning and Analysis department in locations across the country. PriSim educated these class leaders through a structured Train-the-Trainer process.

"It was great working with PriSim on the development of the ROIC-Lab™. Experiencing BizFighter™ as a Finance Leadership Development Program participant really gave me the confidence that I needed to lead this project," says a Manager of Financial Planning and Analysis at a leading aerospace and defense company who provided critical input to PriSim in the design of the tool, "PriSim was easy to work with and was responsive at all times. The ROIC-Lab™ is going to take learning to the next level [at our company]."

The ROIC-Lab™ is another scenario-planning tool from PriSim that builds upon the success of the dealership scenario planning concept, titled What-If™, created by PriSim for Harley-Davidson. The ROIC-Lab™, and other PriSim What-If™ tools like it, are of great value to any company in situations where focused, intensive education is required on a key performance metric. The experience of seeing first-hand the dynamics that actually drive that metric, and what operating-level actions an employee can take to impact the metric, helps bring that metric to life. And that experience contributes to profound, lasting change at an organization.

PriSim Business War Games' business simulations and courses provide managers across all industries with a practice-ground where new ideas can be tested and where strategies can be practiced in a what-if environment. With the roll-out of ROIC-Lab™, PriSim has further expanded its course-delivery reach as it continues to produce unique, computer-simulation based business training solutions to leading organizations worldwide. At PriSim, we make learning real™.

About PriSim Business War Games Inc.:
PriSim Business War Games Inc. works closely with leading organizations to build and deliver customized business simulations. PriSim assists clients in utilizing these custom tools to develop their employees' business acumen. PriSim develops tools and materials that help clients communicate more effectively, proactively explore strategic alternatives, involve multiple levels of management in business development, and share a common model and language of business and finance. Industry-specific simulations include insurance, mortgage banking, aerospace and defense, dealership operations, publishing, e-commerce, and manufacturing. PriSim helps clients make better business decisions while helping them to "See things differently, think differently™". At PriSim, we make learning real™.

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Visit website