004 ❊ the power & promise of coordinated games in organisations
In the world of organisations, beneath the surface of day-to-day interactions and decisions, various games play out.
The game in game theory isn’t about fun or leisure. It is a framework capturing strategic interactions among logical decision-makers.
Earlier, I wrote about how organisations can be seen as games with different elements — players, strategies, incentives and available information.
The more I think of it, the more I believe outcomes in these games seem to be governed primarily by two of these elements, incentives & information — the forces that drive the narrative.
✦ Incentives
Incentives are the motivation behind every move. Whether it's the promise of a reward or the avoidance of a setback, incentives drive players (and their respective teams) to choose one path over another.
They shape aspirations, kindle passions, and sometimes, create conflicts.
✦ Information
This is the clarity with which players in a system see the bigger picture. It's about understanding their roles, the roles of others, and how every step they take influences the larger choreography.
Without clear information, even the best incentives can lead teams astray - making it an absolute cornerstone of effective collaboration and achieving unified goals.
Together, incentives & information create the foundation upon which decisions within organisations rest.
The nature of their interplay defines the games teams play, often determining if our dance leads to a harmonious crescendo or a chaotic scramble.
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An intricate dance of incentives & information
A combination of incentives & information determines the strategies adopted (decisions taken) by the players — which in turn, results in certain types of games being played out.
Of the many types, there’s one that is of particular interest to me at this time.
“A coordinated game”
In a coordinated game, all players work together towards a shared objective, similar to football players aiming to score a goal.
Information availability is crucial here. When teammates have clear information about each other's positions, strengths, and the team's strategy, they can effectively pass the ball, coordinate movements, and execute plays.
The players make decisions based on the information available about their teammates' positions and intentions, leading to a harmonious and successful game, where goals are scored, and victories are celebrated 🌼
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Contrast this with a competitive game, where teammates may prioritise personal gains, shifting the dynamics dramatically. The synergy is lost as everyone plays for themselves, hampering the chances of success.
Here, information about each other's positions and strengths is used for individual advantage, diminishing overall performance.
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Why am I interested?
Because, based on my experiences, coordinated games seem too good to be true to being played in the real world. Period.
I am interested because I am hopeful — this perspective may help me find answers to questions I keep pondering over and over again. What drives outcomes in social systems? What makes legendary brands? And how can I lead my teams in this direction?
It puts some light on the intricate workings of our social systems, revealing how interactions between players and the strategies they deploy can shape the overall outcomes.
It makes think 🌼
Cheers.