Career | Life Lessons | Success
Success Principles Using Game Theory
Because life works like poker, not chess.
I was recently reading about game theory and decision science and it occurred to me that life is a lot like poker — there are so many unknown variables, and the conditions constantly keep changing. Unlike chess, where you can predict all possible outcomes (if you are good enough), life does not allow you to know all the “moves”.
No matter how smart, or hardworking, you cannot possibly control everything in life!
This is one of the main reasons it is better to be action-oriented and grab life with both hands, than wait for the “perfect” moment that may never present itself. If you want to improve the quality of your decisions, and consequently your life, then treat life like a game of poker, not chess.
Basic idea for an amazing life = Treat life like poker, not chess!
So if you want to live an unlimited super-successful life, and ensure an abundant future, then here are 5 important “gaming” principles to use as your guideposts:
- Know the Rules.
- Make the best of the cards you receive.
- There are hidden cards.
- Sometimes you have to bluff!
- Play to win long-term.
1] Know the Rules.
As kids, we are taught to conform to the majority and follow the norms of society. Study well, get a stable job, save 10% and retire, etc. This works well for most people. But these are rules to “Stay” in the game, not to win.
If you really want to win big, you need to understand the “unwritten” rules on how to build alliances and create your own opportunities.
For example, many folks avoid networking and then resent others who get handed high-profile projects that get handed to those who do. If you want to win, you need to master all the rules, or create your own game!
2] Make the best of the cards you were dealt with.
In poker, there are some situations where your only option is to fold or wait for another card. No sentiment, no use trying to be clever or bluff. For some card combinations, there are only limited possibilities that can help. For such cases, you definitely cannot afford to make mistakes.
For life, this translates to making the best of the resources available to you now! Yes, the choices might all be equally unpleasant or mundane, but pick one and stick with it until something better comes along.
You also need to realize that if you want large rewards, you do need to take some calculated risks. Not mindless, adrenaline-junkie type risks, but playing safe ONLY will not go very far. Make the best possible use of the cards available to you.
3] You can’t see the hidden cards.
Life is uncertain and will often punch you in the gut when you least expect it. For example, you might have given an amazing interview at your dream company, but unless you know all the other candidates, the job offer is not guaranteed. Who knows if you are up against a more experienced hire or internal referral?
Prepare for the worst, and hope for the best. There will be recessions, natural disasters, the unexpected death of someone you love. The only way out is to make yourself “anti-fragile” and make sure (a) you have backup plans, (b) be open-minded and flexible enough to handle the inevitable.
Give your best shot, but do not get too emotionally attached to the outcome. Sometimes the best-laid plans do go awry, for reasons beyond your control.
4] Sometimes you have to bluff.
Psychology matters. There are many scientific experiments that show that people respond to subconscious cues — like being deferential to people dressed like doctors/pastors; “halo effect” where we associate the success or failure of one item to another.
Amy Cuddy’s book “Presence” teaches some excellent principles of how to use “power poses” to help you succeed even when you don’t believe in your own abilities. For those who want to be perceived as leaders, please refer to the article below:
Stereotypes are negative, but sometimes you can leverage those to work in your favor. For example, I sometimes name-drop my previous employer company, because the brand is so powerful, it immediately provides a positive image of me. Is this manipulative? Not really, for as a young immigrant and woman of color, people sometimes doubt my competency. This subtle hint helps me overcome those biases.
5] Play to win in the long-term.
If you want to win big in the long-term, you need the discipline to reject short term gains that do not help with your 20-year future goals.
When things are going well, it is easy to be motivated and put effort, or even go overboard and burn yourself out. But as Jim Collins mentions in his book “Built to Last” the best companies moderate their efforts equally in good times and bad. This requires immense discipline.
It is easy to get distracted with everyday “busyness” and lose focus of the high-value tasks that help you get closer to achieve your long-term goals.
In short, plan for the future and unexpected setbacks, and give life your best shot!