The Advanced Research Projects Agency (ARPA) approached The CNA Corporation (CNAC) in June 1993 because of their interest in testing how gaming principles used by the military could be applied to different business sectors. After a series of meetings, we were asked by ARPA to design a game based on a business sector undergoing change in response to the defense drawdown. The shipbuilding industry was chosen because (1) it is a critical business sector for United States economic and military security, (2) it is facing major near-term strategic and tactical decisions that will define its future, and (3) it could be gamed with a high degree of realism.