What is the ultimate objective of a War Game?

The immediate goal of a War Game is to anticipate competitive developments and moves in one's industry(ies), and formulate best-course action options. The ultimate long-term objective of a War Game is to shift managerial focus from internal to external. Additional objectives include:

• Gain a better understanding of the total competitive arena
• Develop reality based market/industry scenarios
• Lay the foundation for an early warning process
• Develop the ability to think like a competitor among internal "experts"
• Raise awareness of participants to the need to consider competitors' moves before committing to a specific strategy, as well as competitors' reactions to your own moves
• Air internal blindspots which typically do not get an open hearing
• Create a long-term support base for the CI function/program

What makes ACI's War Game unique?

Our War Game methodology adds a unique component to the typical war game. It is aimed at identifying competitors' blindspots (obsolete market assumptions leading to strategy "fixation") as well as airing and challenging the host company's operating assumptions about the industry. ACI's methodology is based on Ben Gilad's Business Blindspots (Probus-Irwin, 1994, Infornortics, 1996, 1999).

What are the applications of a War Game?

A War Game has applications in a number of areas:

The Planning Function including:

• Corporate strategy planning
• Business unit's strategy planning
• Functional strategy charting (e.g., R&D)

Testing Strategic Initiatives such as:

• Product introduction
• Mergers and acquisitions

Testing Tactical Initiatives:

• Marketing campaigns (so called "Competitor Response modeling")
• Promotional tactics

How long is a typical War Game?

A typical war-game is a two day event, but requires three to four weeks of data collection and preparation by the company. Under special circumstances, War games can be condensed into one long day if necessary.

What are the components of a War Game?

Data Collection and Advance Preparation By Pre-Assigned Teams

• The data include secondary and primary research about competitors and the industry. It is typically assembled by the host company's CI analysts or by an outside vendor recommended by ACI, in accordance with our guidelines.
• Once collected, the data are then handed to pre-assigned teams representing the competitors and the host company for study prior to the War Game event. The teams must be familiar enough with the data to locate specific data when needed during the course of the War Game. No other preparatory work is required.

Analytical Frameworks

• Without a carefully maintained analytical structure, a War Game is a waste of time and resources. On Day One of the War Game, participants will learn the frameworks for analyzing the industry, the competitors and for identifying the company's and competitors' blindspots. Using a case study, the participants will learn how to answer four critical strategic questions about competitors' future behavior. The War Game is structured around answers to these questions and applied to the issues at hand, such as: formulating competitive strategy for a business unit or whole corporation; or planning a particular initiative - product launch or new technological direction. (Note: This day corresponds ACI's Competitive Blindspots course.)

The War Game or "Battle"

• Day Two of the War Game is devoted to an analytical "battle" between the teams, similar to a chess game. There are two rounds to the battle. In Round One (the "Descriptive" round), the teams present their answers to the four competitive questions. They are asked to predict what competitors plan to do and to analyze potential blindspots. In Round Two (the "Prescriptive" round), the teams develop strategy recommendations for the host company, using the information presented in Round One, placing special emphasis on exploiting competitors' blindspots with proactive strategic options or assessments as to what competitors were "most likely to do". Teams are required to support/defend their recommendations and predictions based on the analytical frameworks and intelligence data.

Industry Scenarios

• At the conclusion of Round Two presentations/defenses, the emphasis shifts to weaving predictions together to form Most Likely and Worst industry-wide scenarios, based on competitors' planned and anticipated moves and the Host's countermoves.

Action Recommendations

• Following the industry-wide scenarios, participants explore recommendations for actions for the host company. This discussion is facilitated by ACI and a Host's executive.

Who should participate in a War Game?

For a War Game to be successful, the composition of the teams should be carefully selected. Each team should be headed by a senior executive and include junior and middle managers as well as field personnel. Team members should represent a diversity of functional expertise unless the War Game is done with one functional area such as R&D. The choice of team leadership is critical¾ senior executive leadership will ensure success of the War Game beyond the "event". Ideally, the CEO or business unit President should serve as the ultimate "referee". ACI's provides close support and detailed guidelines regarding these and other issues during the weeks preceding the War game.

For more information our War Games, contact us at: U.S. (888)732-6812 or Outside U.S.(630) 983-5530 or via our online contact form