I recently attended a presentation on corporate wargaming that had me thinking how it could have helped JC Penny avoid their recent retail strategy woes, and had me wondering why more retailers aren’t using it to mitigate their corporate risk.
Leading the presentation were a group of professional ex-military personnel headed up by a former Lt Colonel. While the combined experiences of the team were impressive enough, their wargaming methodology proved interesting as a valuable tool to be used by any business embarking on significant strategic change.
In my retail experiences, I have often been involved in strategy discussions, which were potential “Game Changers” for the business. Typically, new ideas, recent poor performance, potential or certain new competitors or simply the desire for additional growth, were sound reasons to review and develop strategic plans for the next phase of the business.
In retrospect, I can identify several examples of where corporate wargaming would have been extremely helpful and could have potentially saved retailers millions of dollars.
What Is Corporate Wargaming?
When businesses or public governing bodies, say a major retailer or the Office of Emergency Management, have developed a strategic plan, it is natural for those who came up with the plan to support it and want to see it executed.
Wargaming creates an environment in which to challenge this strategy prior to implementation. The SME’s