In 2002, I read a book that compared business with poker. It had a very catchy title: MBA Poker: Winning in Business No Matter What Cards You’re Dealt, with a simple premise that business people could learn a lot from poker. (Affiliate link)
poker = Business
At the time, I did not play poker, nor had I gone to MBA yet. Neither of those things prevented me from enjoying the book. It was well-written and a fascinating read.
Know your opponent
Poker is a zero-sum game (winner & loser). It’s also one of the few casino games that you can win with a worse hand. Finally, don’t assume that your opponent thinks like you, often they don’t.
“Bad players play their own hand. Good ones play their opponent’s hand first, then worry about their own cards.”
In negotiation (and poker), remember three rules:
- Don’t give up something without getting something in return
- Keep a poker face (e.g. Boxers smile after being hit – to show their fortitude)
- Let your opponent feel like they are winning (so they can save face and do business with you again. Don’t make it a win-lose, fin a win-win)
The answer is it depends
The answer is rarely black/white. Advanced poker players think on many different levels; they don’t over-simplify the problem. Think probabilistically.
Don’t gamble
Do your homework and know the odds. Take calculated risks. If possible, be the house (not the player) by creating the system that other people use and pay for.
“Information has value. Just as you wouldn’t give away cash, don’t give away ideas – unless they contribute to you or your organization.”
Give yourself space
Don’t put yourself in the situation where you HAVE TO win. The urgency of the situation puts you at a disadvantage. You should not play too many hands in poker.
Poker is a zero-sum game, life and business are not
It’s easy to take the power = business analogy too far. As Annie Duke likes to say, “usually you’re playing a game against different versions of yourself, not other people.”
Be tight and aggressive
For poker, play only a few hands, but play them hard. For business, focus your investments. In poker, they call it “pump it or dump it“
“[In poker]. . . you typically should either raise the pot (pump it) and take control of the hand or fold (dump it) and get out entirely. Just calling is an option, but rarely the right one.”
Warning: People are attracted by success
These last two points sound like something out of The Prince by Machiavelli or The 48 Laws of Power by Robert Greene:
“It’s who you know and who knows you. Find out the people of influence that you need to know, and earn the right to meet them.”
“. . .the minute you achieve success, people will be coming after you. The best way to guard against it is to keep your success to yourself”
Annie Duke
For those who know of Annie Duke – successful World Championship of Poker winner, PhD in psychology from Columbia, author, and speaker – this might seem like old hat. Her books affiliate links:
- Thinking in Bets, Annie Duke (2018)
- How to Decide, Annie Duke (2020)
Related Posts