If you're thinking that maybe you should hide the video game controller from your kids because they're spending too much time in front of the TV or computer, don't. What you think is slacking may just be preparing them to become productive members of the workforce when they get older. Their future offices are likely to be heavily digital—especially if they work remotely—and their work may resemble the online games that many now spend hours playing.
Companies around the world, including McKinsey & Co., Royal Philips Electronics (PHG), and Johnson & Johnson Pharmaceutical Research & Development (JNJ) are bringing games with 3D computer graphics into the workplace to appeal to the generation raised on Nintendo (NTDOF.PK), World of Warcraft, and Second Life. They are using games to recruit new talent, improve communication between managers and their far-flung staff, and train employees and new hires at all levels.
To be sure, the fledgling corporate games and virtual worlds are not nearly as sophisticated or visually stunning as some of the most popular consumer games involving millions of players, such as World of Warcraft, but they are precursors of what's in the pipeline. In a recent survey of nearly 1,500 people in large and small companies, the eLearning Guild—a group investigating the design and management of e-learning tools for business, government, and education—found that the number of people using games for work in the financial and banking industries alone had increased from 33% to nearly 40% in the past nine months.
My Virtual Career
Since 2000, McKinsey's German headquarters has run a computer game called CEO of the Future, based loosely on the popular NBC reality show The Apprentice. The goal is to cast a wider net for new talent. In 2007, nearly 5,000 managers and students from all over the world between the ages of 22 and 32 tried their hand at challenges such as starting a European insurance company in Korea or developing an R&D strategy for a new pain reliever made of a genetically modified fruit.
In other versions of the game, players lead a company as it launches a new product, such as a cardiovascular drug. They decide the best time to launch and figure out what size salesforce would be most effective at marketing the drug. Then they had to sell their product—and manage it against competitors—over a product life cycle of 15 years. The contestants also sent McKinsey their résumés and a description of their strategy for the companies they created.
The players who increased the value of their companies by the largest margin were invited to a final round in February, where they presented them to McKinsey partners, as well as the CEOs of Bayer (BAY), Siemens (SI), and a few other companies that had sponsored that year's competition and contributed business problems. From 2000 to 2006, the game was a CD that McKinsey sent to those who expressed interest. This year the game was an online simulation that could be played via the Internet.
Tackling a Problem
Next year, McKinsey has decided to make the game downloadable from a Web site so you can play offline and then upload the results. This way, those who don't have regular Internet access won't be penalized. In next year's version of the game, competitors will tackle renewable energy businesses, says Marco Ferber, a Stuttgart-based engagement manager at McKinsey. McKinsey has hired several past winners of CEO of the Future. In 2007, the winners (there was a tie) also received about $20,000 each.
Philips Electronics used a game to tackle a major problem it faced. North American managers weren't communicating enough with their employees, and workers didn't understand how the company's new branding scheme, "Simplicity," related to the company's heritage and strategy moving forward. So last summer, 4,000 of Philips' 12,000 North American employees played a game called Simplicity Showdown.