detached from consequence

In business, being big can provide significant advantages. Attributes such as bargaining power, economies of scale and brand loyalty are just a few examples. But when it comes to learning and adapting, being big can be a real disadvantage. As complexity increases, we find that we’re not really learning from our mistakes, and even when we are learning, we’re not learning very quickly.

The most powerful learning comes from direct experience. We do something that puts a smile on a customer’s face, and we know we’ve done a good job. Or, we see the disappointment in the eyes of another, and we know we’ve messed up. But what happens when we can no longer see the consequences of our actions?

Modern life has removed us from seeing many of the consequences of our actions. It’s like ordering a ham sandwich for lunch. You obviously know it’s pork, but being directly involved in the production process, and learning from direct experience, might put you off ham for life.

The same is true for the decisions we make in the workplace. We look at our financial statements and make short-term decisions that will help us make the numbers. However, we find ourselves in a dangerous place when these decisions are made without a deep understanding of the system-wide consequences and the impact on other aspects such as relationships, trust and culture. When we’re far removed from seeing the consequences of our choices, we might miss the opportunity to learn from both good and bad decision-making.

And in the instances when we are learning, we’re often not learning fast. Sometimes the decisions we make have system-wide consequences that can stretch on for years or even decades. Have you ever worked in an organisation where the wrong person has been promoted into a leadership position? In a fast-moving world, we can’t afford to make those kinds of mistakes. Even if we learn from our mistake and come to the realisation that we made the wrong choice, it can take years to resolve. We can’t wait, say, 10 years until he retires and then have another go.

Simulations allow us to see the bigger picture, to remove some of the noise that inhibits our ability to learn from consequences. Simulations allow us to fold time, so it doesn’t take decades to learn from mistakes.

To be adaptive, we need to learn, and we need to learn fast! Simulations can help develop our decision-making skills, accelerate learning, and learn without risk.