003 ❊ seeing anew : a game theory take on how organisations work
My rendezvous with Game theory hasn’t completed a day, yet it has influenced my perspective on organisations in profound ways already. In my case, I reflect on my experiences with product startups and companies in India 🇮🇳.
I am eager to share this perspective with you.
At the heart of every organisation is a game — a delicate balance of decisions, strategies, and outcomes.
The game in game theory isn’t about fun or leisure. It is a framework capturing strategic interactions among logical decision-makers.
Before we dive deep, let’s touch on some core ideas of game theory. If you're already familiar, consider this a refresher :
1. Players :
Think of them as the key participants or decision-makers in a scenario. In a company, these could be different teams or individuals.
2. Strategies :
The different actions or choices a player can make, based on what they believe is the best move.
3. Payoffs :
The result or outcome of the choices made by the players. It's what each player gets (or loses) from the decisions taken.
4. Information :
What each player knows about the game, the other players, and potentially what the other players know about the game.
The clearer the information, the better the strategy.
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Now, with these building blocks in mind, let’s dive deeper.
✦ Players in the Game
Every team in our organisation is a player. Think of the design team putting their heart into the user experience, the product team dreaming big for the future, and the engineering team making sure all of it stands strong. Similarly all other teams that move an organisation forward.
✦ Strategies, the pulse of decision making
Choices are more than mere decisions. They are potent signals of intent, reflecting the aspirations of every team.
The design team isn't just picking out UI colours; they are narrating tales.
The product team goes beyond mere feature lists; they mould aspirations.
The engineering team's role isn't limited to choosing technical stacks; they ensure these aspirations are realised and resilient.
✦ A common destiny
Each of these teams, despite their distinct objectives, are bound together in a shared mission. Their individual decisions can either craft a harmonious masterpiece or ensnare them in a web of contradictions.
Acknowledging this mutual dependency is paramount.
❊ Clarity, the keystone
One of game theory's most profound revelations for me has been the unparalleled significance of information.
When our diverse teams tap into a collective pool of knowledge, their decisions aren't just informed — they align, synchronise, and resonate, producing outcomes that are greater than the sum of their parts.
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Fascinating, isn’t it?
My key takeaway here is that organisations are living, evolving entities; unlike static monoliths — a constant stream of decisions, strategies and outcomes pulsating through time. Understanding these dynamics, and being aware of them is the first step towards driving meaningful outcomes.
I am beginning to believe that adopting this fresh game theory perspective to organisations will make me appreciate the essence and magic behind industry successes even more.
May also help me drive change.
Cheers.