From an early age, we are taught the wrong things about money and business. Consider the very popular board game Monopoly (R). The game was developed by an engineer in the early 20th century. In a world of Robber Barons and the genesis of scientific management as a management science, it is possible that a strictly win-lose game is an accurate teaching tool about business. For me, this is an extremely inaccurate way to teach young people about business in a Knowledge Economy, where success is much more about fostering cooperation, sharing ideas, and mutual success. Today’s business environment is about fostering win-win relationships. It is a good time to run a business.
I love Monopoly (R), but have found that a few minor rule changes can make it a much more accurate description of business today. It also makes the game move faster and teaches negotiation lessons and the art of creating win-win solutions in business.
Rule 1) All rentals are paid by the bank.
Rentals are not paid by other players. When a player lands on another player’s property, this simulates the market giving buy signals to the owning player.
Rule 2) Make the payroll
Each time a player passes “Go”, the player must pay 10% of the purchase price of all properties owned (both mortgaged and unmortgaged). This simulates making monthly payrolls and teaches the player the importance of cash flow management.
Rule 3) Property as a couple.
Players can team up to form monopolies and divide the winnings as agreed. Ownership of property is no longer a game of attrition. Bargaining is encouraged much earlier in the game. In the traditional game, many players wait until almost all the properties are acquired to start making deals, which prolongs the game. In business, seizing opportunities quickly is vital to success.
Rule 4) Private loans
Players can loan money to other players on mutually agreed terms. Successful entrepreneurs know that lack of money is rarely an obstacle when the opportunity is great. Part of the art of making deals is building a team that has all the necessary resources. Often one of the parties provides funding.
Rule 5) End the game
The game ends when the last hotel is sold and therefore the market has reached “saturation”. This teaches the importance of acting quickly and encourages making deals as soon as possible.
A few simple rule changes like these can reinvent Monopoly (R) and make it a much better learning tool.