Benefits of Simulations in Benefits of Simulations in Teaching Teaching

Mikes Bikes as an exampleMikes Bikes as an example

Presented to staff at Shanghai Institute of Foreign Trade October 2006Frank Weterman

OverviewOverview

Why Simulations in accounting Why Simulations in accounting education?education?

Mikes Bikes – overviewMikes Bikes – overview Example of Results – Feedback to Example of Results – Feedback to

studentsstudents Student feedbackStudent feedback

The problemThe problem

I know many accountants . . . who can count perfectly and indeed marvelously, but

somehow very few of them have wisdom, perhaps none. (St Augustine, 354)

W. S. Albrecht and R. J.Sack (2002) are often quoted when relating to the difficulties surrounding accounting education

Underpinning logicUnderpinning logic

Grappling with the effective application of pedagogy that includes experiential

learning activities, several authors have quoted an ancient statement by

Confucius (Kolb et al., 1974; Specht and Sandlin, 1991):

I hear and I forgetI see and I rememberI do and I understand.

Advantages to studentsAdvantages to students

Integrate learning from functional Integrate learning from functional areas of a businessareas of a business

Identify and solve problemsIdentify and solve problems Plan and be aware of the feelings Plan and be aware of the feelings

and beliefs of othersand beliefs of others Experiment and learn new behaviourExperiment and learn new behaviour Gain a top management perspectiveGain a top management perspective Make it realMake it real

Jennings (2002)Jennings (2002)

Chinese contextChinese context

The Chinese prefer to focus primarily on more easily quantifiable subjects such as economics and finance. The “soft” technologies have had substantial difficulties in being introduced to Chinese society. p11

Western training principles would tend to have the least immediately successful application in training settings with Asian students, Chinese students in particular. p15

Irene Han-Siu Chow (1996)

But,But,

Group-oriented arrangements will be more appropriate. The Chinese are believed to be more group-oriented with more inclination to work in a small group than to work independently. p13

Irene Han-Siu Chow (1996)

Using Mikes BikesUsing Mikes Bikes

Class numbers are currently 50 – 60, although the Class numbers are currently 50 – 60, although the NZICA run a ‘class’ throughout New Zealand of NZICA run a ‘class’ throughout New Zealand of over 600.over 600.

Approximately half the students are from India or Approximately half the students are from India or ChinaChina

Students put into groups of 4 – 5Students put into groups of 4 – 5 In our situation students have experienced Solo In our situation students have experienced Solo

Mike in a previous course – Mikes Bikes is not new Mike in a previous course – Mikes Bikes is not new to themto them Business Plan 5 – 8 pages with presentationBusiness Plan 5 – 8 pages with presentation 4 years of accounts ‘Rollovers’4 years of accounts ‘Rollovers’ Final report “How successful were we”Final report “How successful were we” Individual reflection of learning – 1 A4 page.Individual reflection of learning – 1 A4 page.

As the simulation unfoldsAs the simulation unfolds

Simulation is Simulation is Internet enabled so students can access at any Internet enabled so students can access at any

point of timepoint of time Competitive, can therefore be repeated and Competitive, can therefore be repeated and

repeated with differing results ie no right repeated with differing results ie no right answeranswer

Designed to encourage ‘soft skills’ eg group Designed to encourage ‘soft skills’ eg group work, communication skills, presentation skillswork, communication skills, presentation skills

Integrative, so that accounting tools are linked Integrative, so that accounting tools are linked to marketing and production managementto marketing and production management

Student feedbackStudent feedback

Some like group work, others don’tSome like group work, others don’t Adjustments are required to allow for Adjustments are required to allow for

those who are waiting for the right those who are waiting for the right answer – even those who believe answer – even those who believe that they have an excellent course of that they have an excellent course of actionaction

Some take it very (too?) seriously Some take it very (too?) seriously and complain that it takes too much and complain that it takes too much timetime

Student FeedbackStudent Feedback

The most important feedback from The most important feedback from my perspective is that given when my perspective is that given when students graduate:students graduate:

Whether they enjoyed it or not one of Whether they enjoyed it or not one of the things which stayed with them the things which stayed with them the most is Mikes Bikes. the most is Mikes Bikes.

Questions?Questions?

Web site for additional informationWeb site for additional information www.smartsims.comwww.smartsims.com