Saturday, July 05, 2008
   
 
 
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  General Motors 
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Case Studies: Novellus Systems
 
Training and Value Communication - Information Technology
 
The Challenge
  Rick Hill, the CEO of Novellus Systems, Inc., wanted to put his senior managers through a war game to understand the dynamic and competitive nature of the semiconductor equipment business. This game was to be part of a training session during their annual management meeting.  
The Solution
  Powersim Solutions Group built a competitive training simulation for Novellus Systems using our industry-leading strategy communication tool and training platform. We worked with senior executives at Novellus to understand the business relationships that shape performance and market dynamics. The model captured the entire structure of a semiconductor equipment company including R&D, production, sales, service, pricing and financials.

The simulation application was built to run on web-browsers off a local server. The web application consisted of instructions for the teams, decision entry area, and results viewing areas to aid the simulation users.

250 managers were broken into 25 teams of 10 people. The teams were competing against a competitor played by the computer model. In each round teams made decisions on all areas of the business. Teams were given scores for their performance at the end of each round of simulation. Teams were able to look at different reports including financial, marketing, sales and production after each round. A facilitator controlled the time between decision rounds.

 
 
The Benefits
Novellus managers got hands-on experience in managing the company in a competitive environment and changing market conditions. This helped them to see the big picture - the effects of their decisions in a particular functional area, on other functions, and the overall company performance. The hands-on facilitated nature of the simulation activity kept the managers engaged throughout the activity, and promoted retention of learned concepts. The team interaction helped managers understand the interrelationship of other functional areas within the organization.

Full case study: Improving collective capacity to execute strategy (PDF 298KB)

 
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