STRATEGY, GAMES,

AND THE MIND

By Martin Reeves, Frida Polli, and Gerardo Gutiérrez-López

“Any man could, if he were so inclined, be the •• Adaptive: Iterative experimen-

sculptor of his own brain.” tation as the basis of success under
—Santiago Ramón y Cajal, the father of unpredictable, nonmalleable
neuroscience conditions.

T he world is more complex and

dynamic than ever. The increased
diversity of business environments, driven
•• Visionary: Envisioning and materializ-
ing new value-creating ideas when
both predicting and shaping are
by the rate of technological innovation, is possible.
at odds with the way that many companies
develop and deploy strategy. To endure •• Shaping: An ecosystem- and platform-
and remain vital, companies are recogniz- based approach for unpredictable,
ing that a single approach to strategy and malleable circumstances.
execution will not suffice, so they are
cultivating the capabilities required to deal •• Renewal: Swift and pragmatic transfor-
with each specific environment they face. mation to ensure survival under severe
resource constraints.
This entails mastering five approaches to
strategy. (See Exhibit 1.) In combination, To develop such a contingent approach to
these allow companies to simultaneously strategy, nurturing a diverse base of talent
overperform in their core business and de- is essential. Understanding the different
velop sources of future growth. brain mechanisms that underpin strategic
skills can help companies better assess,
•• Classical: The traditional approach of source, match, and deploy the right talent
analysis, planning, and execution, against specific strategic challenges. Neuro-
suitable for predictable, nonmalleable science and gaming can provide the tools
environments. to achieve this.
 Exhibit 1 | A Contingent Approach to Strategy

Renewal
Adaptive Shaping
UNPREDICTABILITY

Classical Visionary

ESS
SHN
HAR

MALLEABILITY

Sources: Henderson (1970); Lockridge (1981); Nadler & Tushman (1994, 1995); Abell (1999); Wiltbank et al. (2006); Reeves et al. (2011, 2012, 2015).

In the Brain, All Strategies gorithm to analyze patterns of 90 brain

Are Not Made Equal skills, including memory capacity and
There is a yawning gap between strategy speed, learning skills, speed of reaction,
and implementation. To connect theory risk aversion, planning aptitudes, and im-
with practice, understanding must be pulsivity. We hypothesized that traditional
matched by experience and capability— cognitive abilities—like focus and reason-
practice makes perfect. However, practice ing—would be related to success under
implies a risk of failure, which often bears predictable conditions. Conversely, speed
a prohibitively high cost in the real world. and learning should be more relevant to
Games offer a solution to the dilemma. dealing with dynamism and unpredictabili-
ty. Our analyses of large amounts of game
To help bridge the strategy-implementation play data from both tools support these hy-
gap, the BCG Henderson Institute devel- potheses, and a clear pattern emerged: suc-
oped a mobile game simulating the five cess in each approach to strategy depends
strategy approaches, unleashing the power on a distinct and measurable set of brain
of gaming to diagnose and develop strate- traits. (See Exhibit 2.)
gic skills. The game features short rounds
in which players need to execute the right 1. Top Classical strategists exhibit a
approach to strategy to win against an al- superior ability to focus their attention
gorithmic opponent in each environment. on the task at hand, which pays off in
Strategy skills are measured and bench- the relatively stable environment they
marked, providing feedback to reinforce face. They are superior abstract think-
the use of the right thoughts and actions in ers, which allows them to better
the right situations. translate observations into plans. As
they execute them, a frugal mindset
To deepen our understanding of strategy prevents suboptimal investments and
skills, the BCG Henderson Institute part- favors the efficient use of resources.
nered with pymetrics. Pymetrics has adapt- This profile, which enables analysis,
ed a set of games from classical neuro- planning, and execution, increases the
science tasks that assess distinct traits and chances of success in a predictable
an accompanying artificial intelligence al- setting.

The Boston Consulting Group | Strategy, Games, and the Mind 2

 Exhibit 2 | Each Strategic Approach Calls for a Different Set of Brain Skills

ENVIRONMENT
Skill Classical Adaptive Visionary Shaping Renewal
Abstract thinking
Frugality
Focus and attention
Capacity to learn from trial and error
Ability to quickly create/implement a new solution
Ability to quickly evaluate amount in financial transactions
Capacity to learn from risk and ambiguity
Predisposition to controlled behavior
Longer memory span
Ability to quickly recover from mistakes
Tendency to act quickly
Persistence in the face of small changes in the chances of success

Source: BCG Henderson Institute analysis.

Note: Circles indicate threshold for significance achieved; N=174.

2. Top Adaptive strategists can’t rely on environment, top shaping strategists

planning, as they deal with unpredict- profit from an increased capacity to
able circumstances. As conditions learn from risk and ambiguity, which
evolve constantly, their increased speed enables them to evolve in concert with
in creating new solutions and assessing their developing surroundings.
financial transactions points to their
ability to adapt to ever-changing 5. Top Renewal strategists deal with an
circumstances. They also show an environment characterized by restricted
increased capacity to learn from trial resources, making controlled behavior
and error, which implies that they are and superior memory crucial assets for
both open to exploring new approaches endurance. In addition, top renewal
and to systematically selecting the ones strategists share some characteristics
with the best outcomes. with other top strategists, such as focus
and attention (Classical), speed in
3. Top Visionary strategists (such as assessing financial transactions and
entrepreneurs) are quick to action, which crafting new solutions (Adaptive and
allows them to be first in pursuing new Shaping), and an increased capacity to
opportunities. As they do so, they learn from risk (Shaping). In the
recover quickly from mistakes and hence renewal environment, these traits
continually improve their approach. enable strategists to carefully define
Additionally, their persistence in the face and follow a course of action with
of changes in their chances of success urgency, avoiding making a fatal move
allows them to build their business by in their vulnerable situation.
applying the shaping capabilities a
malleable environment requires.
Game Up Your Strategy
4. Top Shaping strategists also deal with As companies revamp their approach to
unpredictability and, unsurprisingly, strategy and execution to match a complex
share some traits with top adaptive business environment, games provide mul-
strategists—particularly, the speed with tiple checkpoints throughout the journey
which they create new solutions and and help align strategy, talent, and capabil-
assess financial transactions. Addition- ity building. Leaders can harness games in
ally, as they exert their influence in the six important ways:

The Boston Consulting Group | Strategy, Games, and the Mind 3

 1. Bridge the gap from theory to reality. 4. Provide alignment mechanisms
Games provide a crystallizing mecha- through a common language. Shifting
nism for translating the concepts of strategy requires aligning people and
strategy into workplace behaviors—and ideas. A client with whom we used our
company results. The vividness of the game to kick off a strategy renovation
experience has helped career-long, project recognized that common
classically oriented managers internal- language was critical to the effort and
ize a de-averaged approach to strategy appreciated the game’s ability to create
and execution. As one participant put a shared basis for discussing strategy.
it, playing brought high-level strategy We may all feel that we understand
concepts down to earth and provided what “adaptive” or “visionary” means,
her with new moves to test and embed but shared experience creates a firmer
in day-to-day work. common understanding.

2. Lower the cost of learning. In the 5. Measure skills consistently. Games

game world, resources—even time, can provide accurate assessments of
money, and life—need not be limited. individuals’ current and potential
This relaxation of constraints allows capabilities, allowing companies to
players to try—and fail with—multiple diagnose their strategic skills. As leaders
approaches at a very low cost: a few contemplate talent succession and
minutes instead of a project’s budget. deployment in changing circumstances,
This makes games a relatively inexpen- games increase the chances of finding
sive channel to roll out broad training the right fit. Games may replace more
programs, augmented by the scalability familiar approaches, like MBTI person-
of digital technologies. Another partici- ality tests, whose validity has been
pant highlighted that her main learning strongly questioned.
came from failing to replicate positive
results with one strategic approach in 6. Know, develop, and deploy your
other environments, which translates workforce. Strategy and neuroscience
into more effective pilot programs and games can help leaders get the most out
less chances of strategic mismatch in of their human capital, allowing them
the real world. to diagnose, source, develop, and match
it to the right strategic challenge. On a
3. Offer enhanced and effective feed- higher level, games can also support the
back mechanisms. We often hear from formation of truly ambidextrous teams
players that seeing the immediate to face more complex business environ-
results of their actions increases their ments.
willingness to break old habits when
their default approach doesn’t work.
Instant feedback fosters the inclination
to try new approaches, a requirement to
sustain vitality. After recognizing that its
B y applying games and neuroscience,
companies can go a long way toward en-
hancing their pool of strategic skills in all
approach to strategy was “too ritual- steps of the talent cycle with increased lev-
ized,” a client’s leadership team invited els of accuracy. Play may prove to be an im-
us to challenge its thinking. A game- portant component of the future of work.
based workshop during an annual
off-site meeting sparked a lively discus- You can download the Your Strategy Needs a
sion about refreshing their corporate Strategy game here and play pymetrics’
strategy. games here.

The Boston Consulting Group | Strategy, Games, and the Mind 4

 About the Authors
Martin Reeves is a senior partner and managing director in the New York office of The Boston Consult-
ing Group and the director of the BCG Henderson Institute. He is the coauthor of Your Strategy Needs a
Strategy (Harvard Business Review Press, 2015). You may contact him by email at [email protected]
and follow him on Twitter @MartinKReeves.

Frida Polli is the CEO and cofounder of pymetrics, a startup that uses advances in cognitive neuroscience
to create analytics-informed decision-making and performance-enhancement software for the human
capital field. You may contact her by email at [email protected] and follow her on Twitter @fridapolli.

Gerardo Gutiérrez-López is a consultant at BCG and an ambassador to the BCG Henderson Institute.
You may contact him by email at [email protected].

The BCG Henderson Institute is The Boston Consulting Group’s internal think tank, dedicated to exploring
and developing valuable new insights from business, technology, and science by embracing the powerful
technology of ideas. The Institute engages leaders inprovocative discussion and experimentation to
expand the boundariesof business theory and practice and to translate innovative ideas from within and
beyond business. For more ideas and inspiration from theInstitute, please visit https://www.bcg.com/
bcg-henderson-institute/thought-leadership-ideas.aspx.

The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advi-
sor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all
regions to identify their highest-value opportunities, address their most critical challenges, and transform
their enterprises. Our customized approach combines deep insight into the dynamics of companies and
markets with close collaboration at all levels of the client organization. This ensures that our clients
achieve sustainable competitive advantage, build more capable organizations, and secure lasting results.
Founded in 1963, BCG is a private company with offices in more than 90 cities in 50 countries. For more
information, please visit bcg.com.

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The Boston Consulting Group | Strategy, Games, and the Mind 5