Although simulation is among the least common of the many methods consultants employ to stimulate team development, realistic simulation can help in the diagnosis of management teams. Simulations fill a gap in the repertoire of data collection methods for organizational diagnosis and development by affording an opportunity for direct observation under controlled conditions. A management simulation is an exercise that produces a sample of behavior from which managers can derive an accurate picture of themselves both as individuals and as a group. Just as vital, however, is the infrastructure built around the simulation to collect, assemble and interpret data. Before simulation, managers should ensure: entry meetings, efforts to increase readiness, experiments with experiential methods, the experience of beginning with a low to moderate risk, relationship building, and an understanding of the team in context. After simulation, insight and energy should be channeled into concrete plans for action. To illustrate the application of these principles, the major part of this report focuses on a case study of the experiences of the management of a public agency in a medium-sized midwestern city with the simulation game, "Looking Glass." Appendices provide additional information on "Looking Glass" and feedback from the case study. A list of references completes the document. (JB)