A Drinking Game For Analysts
Lessons in Feedback & Systems Thinking From The Beer Game
Feedback and Systems Thinking are critical to the analytic process. Feedback data is likely the most critical information your company can collect (second only to identity). And systems design and optimization is one of the most powerful applications of good analytics.
That said, feedback can get a bit boring. Much of it is just a repetitive string of events, like character deaths on The 100, The Walking Dead, or Spartacus. Or maybe it is more like the number of times Cartman is called a “fatass” on SouthPark or Jon Snow a “bastard” on GoT. Essentially, it is a bit like the set-up for a drinking game. So grab a beer (or non-alcoholic beverage, if you prefer) and lets try to learn something.
Enter The Beer Game
A better analogy, actually more of a simulation, is The Beer Game. The Beer Game doesn’t actually involve drinking… although I suppose it could. The game is played among groups (often in team building exercises) and involves the players attempting to manage a supply chain between Breweries, Wholesalers, and Retailers.
The game is predicated on a variable demand and a lagged feedback loop where each step in the process can only receive feedback from their immediate connection. Each turn the retailer sends a request for future supply to their wholesaler, the wholesaler is in turn submitting their own request to the brewer based only on prior requests, the brewer is organizing supply — but two steps lagged.
The process also works in reverse. Each turn the brewer sends along a supply of beer to the wholesaler. The wholesaler forwards the prior months supply to the retailer. You can quickly see how the duel lags in demand and supply feedback on each other to create a complicated and entertaining system. Rules include scoring in the form of cases sold, cases spoiled, and customers disappointed. It is a fun game.
The game was created in the 1960’s at the Sloan School of Management at MIT. Numerous sites and organizations facilitate games for corporations and universities. Wikipedia, as usual, provides a solid set of references. As recently as last year, there was also at least one useful app version available for Android — alas the app seems to have broken.
Feedback and Systems Are Critical Insight For Analysts
I highly recommend you try your hand at this simple but insightful game. It has much to teach you about feedback systems and corporate communication. It may not be as fun as Drinking Dexter, but it is far better than Buzzword Bingo. Thanks for reading!
