The Importance of Career Strategy
Navigating the complexities of career advancement requires a solid strategy.
Game theory, the mathematical study of strategic decision-making, offers invaluable insights for enhancing your career. By applying these principles, you can maximize your opportunities for growth and success in the professional world.
Let’s go to the beginning, and put one of the world’s most important strategies to work for you…
A couple of definitions first (we promise, it will be worth it):
Lessons from Axelrod’s Research
Who is Axelrod?
Robert Axelrod is a political scientist and professor known for his groundbreaking work in the field of game theory, particularly in understanding the dynamics of cooperation.
His research has been influential in various disciplines, including economics, political science, and evolutionary biology.
What is “The Evolution of Cooperation”?
“The Evolution of Cooperation” (related) is a seminal book by Robert Axelrod, which explores how cooperation can emerge and thrive in a world of self-interested individuals.
The book uses game theory, particularly the iterated Prisoner’s Dilemma, to demonstrate how cooperative strategies can evolve and be sustained over time. For more details, you can read about it on Wikipedia.
Explanation of Axelrod’s Research
Robert Axelrod’s research, as detailed in “The Evolution of Cooperation,” demonstrated that strategies like “Tit for Tat,” which involves reciprocating an opponent’s previous action, promote mutual cooperation and trust over time.
The following video does a great job explaining Axelrod’s findings at length:
Now that we have these definitions in place, let’s apply all this theory to your career development…
The Workplace is a Domain of Games
The workplace embodies a complex interplay of zero-sum and infinite games, where interactions often resemble the iterated Prisoner’s Dilemma. Understanding these dynamics is crucial for navigating your professional relationships and career development.
Here’s how they work:
Zero-Sum Games in the Workplace
In zero-sum games, one person’s gain is another’s loss. These situations often arise in scenarios like promotions, where only one candidate can be chosen, or budget allocations, where departments compete for limited resources.
Example: During a performance review period, two employees may compete for a single promotion. If one gets the promotion, the other does not, making it a zero-sum situation.
Infinite Games in the Workplace
Infinite games, on the other hand, focus on ongoing interactions where the objective is to continue the play rather than to win outright. These games emphasize long-term relationships, collaboration, and continuous improvement.
Building and maintaining client relationships is a common example of an infinite game. Success in client management isn’t about winning a single contract but fostering long-term partnerships that yield continued business.
Example: A sales executive who consistently provides excellent service and builds trust with clients will see repeat business and referrals, benefiting both the executive and the company. This approach creates a cycle of mutual benefit where the client receives value and the company gains sustained revenue, far beyond the initial sale. Even when negotiating tough deals, a focus on long-term relationships ensures ongoing growth.
Iterated Prisoner’s Dilemma in the Workplace
The iterated Prisoner’s Dilemma is a scenario where individuals repeatedly interact, and their decisions impact future interactions. Cooperation can lead to mutually beneficial outcomes, while defection (selfish behavior) can harm long-term relationships.
Example: Consider two colleagues working on a project. If they consistently support each other – share information, help each other with tasks – they build trust and increase the likelihood of project success. This cooperative behavior benefits both parties over time. However, if one person frequently shirks responsibilities or takes credit for joint efforts, the other will likely retaliate, leading to mutual distrust and reduced productivity.
The Best Career Strategy According to Game Theory
Succeeding in the workplace requires recognizing when you are in a zero-sum situation and when you are part of an infinite game.
In zero-sum situations (winner take all, no long term consequences), assertiveness and strategic positioning are crucial and have disproportionate returns.
In infinite games (reputation matters, cooperation creates win-win), which are most work situations, fostering relationships and maintaining a cooperative attitude is more important.
But there are some caveats…
Let’s go back to Axelrod’s key findings:
Tit for Tat: The Best Strategy
Robert Axelrod’s research on game theory demonstrates that the “tit for tat” strategy, slightly modulated with around 10% forgiveness, is highly effective in repeated interactions.
This strategy operates on a simple principle: initially, the player cooperates with its opponents. If the counterpart cooperates, tit for tat reciprocates cooperation. However, if the counterpart defects, tit for tat responds in kind by defecting as well. The brilliance lies in its simplicity and directness: it rewards cooperation with cooperation and punishes defection with defection.
Axelrod’s studies further revealed that adding a touch of forgiveness to this strategy significantly enhances its effectiveness. By allowing for a small margin of error, approximately 10% forgiveness, tit for tat becomes more adaptable and resilient. This forgiveness means that even after a defection, tit for tat occasionally reverts to cooperation, providing an opportunity for reconciliation and renewed cooperation.
There are four principal components that make up the Tit for Tat strategy:
Nice
“Niceness” here does not have the colloquial meaning “being pleasant or agreeable”. Here, niceness means starting with cooperation, and not being the first to defect (i.e. never start trouble or initiate aggression toward others). Being cooperative initially sets a positive tone and invites mutual cooperation. If both players see the benefits of cooperation initially, they are more likely to continue cooperating, leading to higher cumulative payoffs over repeated interactions.
Forgiving
Incorporating some level of forgiveness means that occasionally, even if the other player defects, you will choose to cooperate. This prevents the cycle of retaliation from spiraling out of control. This works, because the expected value of forgiving occasionally is calculated to be higher than consistent retaliation.
Retaliatory
It’s not all sunshine and rainbows. Most defection is met with defection. Immediate retaliation to defection ensures that uncooperative behavior is punished right away. This discourages the opponent from defecting in the future. By retaliating, you signal that defection will be met with a reduction in their payoffs, making other players less likely to defect in the future.
Here’s the key: retaliation must “reduce their payoffs“, or in more brute terms, “hit them where it hurts”…
Clear
Having a clear and predictable strategy makes it easier for others to understand and respond appropriately, fostering mutual cooperation and learning your boundaries. If your strategy is clear, opponents can recognize and predict it, which stabilizes the interaction. And when both players know that cooperation will be reciprocated and defection will be punished but occasionally forgiven, they can plan their moves to maximize long-term payoffs – tilting the game toward cooperation in the long run.
Remember: In an Iterative Prisoner’s Dilemma, this approach works because the long game is won when parties cooperate. This is, in essence, the corporate game… When coworkers cooperate to create value, instead of competing against one another at the expensive of value creation, everyone does better.
Of course… All of this applies in the aggregate. While the math is solid and incontrovertible, there are many nuances and the details matter.
In other words… We have to get deeper into the weeds to develop a full understanding…
Let’s get to the caveats…
Game Length and Strategy
The most important caveat is the length of the game duration. It has, perhaps, the biggest impact on the selection of your strategy.
- Long Games: In prolonged interactions, cooperative strategies like “tit for tat” dominate. For example, consider a research project where you’re part of a team aiming to develop a new drug over several years. Adopting the “tit for tat” approach involves consistently contributing your expertise, resources, and effort to the project. There may be some conflict, but you aim towards long term resolution and further cooperation. Over time, this cooperative dynamic fosters trust, strengthens team cohesion, and maximizes the project’s chances of success – and in the end, you create a new drug that makes tens of billions.
- Short Games: In brief encounters, aggressive strategies that yield immediate returns can come on top. For instance, imagine you’re participating in a hackathon where teams form and dissolve within a single day. In this scenario, your primary objective may be to showcase your skills and achieve individual recognition rather than fostering long-term cooperation. As a result, you might prioritize personal gain by focusing on tasks that enhance your own visibility and standing, even if it means not fully collaborating with teammates. While cooperation is still valuable, the short duration of the interaction incentivizes the self-interested approach.
Zero-Sum and Infinite Games
Whether or not you’re playing a zero-sum game or an infinite game also makes a tremendous difference in the success of your strategy.
When engaged in zero-sum games where resources are finite and competitive, a more aggressive stance can be crucial for success. For example, in a scenario where multiple employees are competing for a single raise, cooperation alone may not work. Instead, you might need to assertively advocate for yourself, highlighting your accomplishments and value to the organization to outperform competitors. In fact, prioritizing personal gain over cooperation becomes necessary to secure the raise, as resources are distributed based on individual performance rather than collaborative efforts.
Conversely, when playing infinite games, games characterized by ongoing, non-zero-sum interactions, such organizational growth, cooperative strategies like “tit for tat” offer important advantages. For instance, when working within a team to boost your market share, fostering positive relationships, collaborating effectively, and reciprocating has disproportionate benefits. By consistently contributing to the collective success, you not only build trust, enhance your reputation, and position yourself for future opportunities, but you also improve the likelihood of overall success that everyone can benefit from. Prioritizing cooperation over aggressive competition is the key to winning infinite games (assuming you aren’t a pushover, remember: tit for tat, retaliatory).
Other Players’ Strategies
The games other players are playing also matters. In situations where “tit for tat” proves ineffective, particularly in the presence of a “tragedy of the commons,” where individuals prioritize their own interests over collective well-being, adopting a “grim trigger” strategy becomes necessary.
This strategy involves initially cooperating but permanently defecting if others do not reciprocate cooperation, thereby punishing free-riding behavior (so that free riders don’t win) and also minimizing your losses (grabbing whatever value you can for yourself). It may be a toxic reaction to a toxic environment, but it’s the appropriate strategy in the light of game theory… Or more accurately… Appropriate until you get another job.
So… If others in your organization are playing a “tragedy of the commons” game, you may need to adopt a “grim trigger” strategy to maintain strategic advantage, as “tit for tat” won’t win.
Key Career Development Lessons
Looking at Axelrod’s findings, we can derive a number of important career development lessons.
Lesson: Strategic Thinking and Adaptability
Balance assertiveness with flexibility. Recognize when to stand firm and when to adapt. This prevents you from missing valuable opportunities. For instance, if a new project arises that doesn’t align perfectly with your current role but offers significant learning potential (more qualifications you can use toward a promotion down the road), be flexible and consider the long-term benefits.
Lesson: Strategic Cooperation
Identify opportunities for mutually beneficial cooperation. Both parties gain from collaboration. This isn’t about being nice; it’s about being smart. Seek out projects and roles where teamwork is rewarded, and align yourself with colleagues who share your professional goals.
In the long run, the more cooperation you engage in, the more you win and the more your organization wins. It’s the ideal outcome.
Lesson: Calculated Retaliation
In some situations, it may be necessary for you to retaliate. Retaliation should be strategic and calculated. Never act out of anger or impulsiveness. If someone undermines you, respond in a way that protects your interests without jeopardizing your professionalism.
For instance, if a colleague takes credit for your work, document your contributions and present them clearly to your boss – and try to make sure your boss has a talk with them. Maintain professionalism, but don’t hesitate to defend your achievements.
Retaliation must become reflexive. Peace through strength.
Lesson: Leveraging Allies and Benefactors
Cultivate relationships with influential allies and benefactors. Benefactors are individuals who have more power in your organization that can support your career advancement. And remember: they have a self-interest in your success, which isn’t charity but strategic alliance. Understanding the fact that their cooperation with you benefits them as well, is a key to building better strategic relationships.
Lesson: Adapting Strategy to Game Duration
Tailor your approach based on how long you plan to stay in a role, and how much that role is going to impact your reputation.
- Long-Term Roles: Use cooperative strategies. Build lasting relationships and a solid reputation. Be more willing to forgive defections in order to foster future cooperation.
- Short-Term Roles: Be more assertive. Achieve quick wins. It’s still wise to avoid burning bridges, but no longer taboo.
At a minimum, you should consider whether the job will go on your resume, the potential for future references, and the likelihood of interacting with these colleagues again.
Lesson: Environment-Dependent Strategies
Understand your workplace environment and the strategies of your colleagues. Test their responses and adjust your strategy accordingly. In a cooperative environment, be collaborative. In a competitive environment, be vigilant and protect your interests with greater aggression.
Lesson: Clear Communication and Perception
Miscommunication can indeed have detrimental effects on your career trajectory. As evidenced by Axelrod’s research and centuries of statesmanship, clarity in strategy is crucial.
When others are uncertain about your intentions or strategy, it can lead to misunderstandings and even derail the whole game. Therefore, it’s crucial to ensure that your goals and intentions are clearly communicated to other participants.
When cooperating, ensure that all participants are aware of your cooperative stance through explicit communication and consistent behavior that reflects cooperation. This may involve openly expressing your willingness to collaborate, actively engaging in cooperative efforts, and demonstrating reliability and trustworthiness in your actions.
Similarly, when retaliating, make it unmistakably clear that you are responding to uncooperative behavior. This can be achieved through assertive and transparent communication, promptly addressing instances of defection, and ensuring that the consequences of non-cooperation are evident to all parties involved.
By giving clear signals of your intentions, you not only establish trust, but you also minimize misunderstandings.
Lesson: Systemic Play
This is likely the most important insight to be derived from Axelrod’s work in relation to your career.
Remember, you’re navigating a system of players, not just individual opponents.
Or to put it more clearly: you are here to win the war, not every battle.
Focus on long-term aggregate success. If conflicts arise with a colleague, resist the temptation to let it sour your relationships with others. Uphold professionalism and strategic clarity. Understand that your interactions with one individual should not influence your approach towards others.
Also… Who cares if your boss sold you out in that one project, when you end up being the one calling the shots a few years down the line? Success isn’t about winning every petty skirmish; it’s about playing the long game and emerging victorious in the grand scheme of your career.
You’re not just competing against individuals; you’re navigating a vast network of players, each with their own motivations and strategies. Rise above the noise, maintain your focus, and keep your eye on the ultimate prize.
Real-Life Examples
Here are some key real life examples and how to apply game theory lessons toward them:
Promotions and Raises
When competing for a promotion or a raise, the workplace operates as a zero-sum game. Only one person can get the promotion, meaning others miss out. For instance, if two employees are going after the same managerial position, one will win and the other will lose.
What to do: When vying for a promotion or a raise, maintain a “tit for tat” mentality by reciprocating cooperation while simultaneously positioning yourself for advancement and retaliating when necessary. For instance, if a colleague provides assistance on a project, reciprocate by offering your expertise or support (cooperation). But if they undermine your efforts by withholding crucial information or resources, you need to retaliate. In response, instead of openly confronting the colleague, discreetly gather additional information or resources from alternative sources, and then, campaign with your work to get recognition. Make it clear that you don’t need them. And if they don’t play ball… You’ll be the one in the spotlight either way.
Budget Allocations
Departments often compete for limited resources. An increase in one department’s budget can mean cuts for another. For example, if the marketing department secures more funding, the R&D department might receive less – zero sum game.
What to do: Let’s say the marketing team consistently provides data and insights that enhance your advertising campaigns. In return, you reciprocate by offering to collaborate on their upcoming product launch and even share some of your budget. This fosters a mutually beneficial relationship between departments. However, if the finance department repeatedly restricts your budget, hindering your ability to execute vital projects, you strategically retaliate by presenting a detailed analysis of their negative impact on revenue generation. You propose reallocating funds from non-essential areas (like finance).
Collaborative Projects
In cross-departmental projects, the focus is on creating value that benefits the entire organization. When marketing, sales, and product development teams collaborate to launch a new product, for instance, their cooperation can lead to increased sales, benefiting everyone.
What to do: Let’s say some teams come together to launch a new software product. As long as all the participants are cooperating, you should cooperate and create as much value as possible. However, if any department fails to uphold their end of the collaboration, retaliation becomes necessary. This may involve holding meetings to identify and call out defectors, providing additional support to struggling departments (i.e. taking over their leadership), or even reassigning responsibilities to ensure accountability.
Knowledge Sharing
Establishing a culture of knowledge sharing is an infinite game. By mentoring colleagues and sharing expertise, you contribute to a more skilled and effective workforce, while simultaneously investing in relationships and boosting your profile. For instance, a senior engineer who trains junior staff helps create a more competent team, creating more value for everyone involved.
What to do: Let’s say you’re a seasoned software engineer with expertise in a specific programming language. You mentor junior developers in your team, sharing best practices and providing hands-on training. This raises your profile and positions you as a leader, building reciprocating allies in the process. However, if some team members refuse to collaborate or undermine your leadership, you need to strategically retaliate by documenting the impact of their lacking work on project timelines or quality. You may escalate the issue to management, highlighting the importance of a collaborative and transparent work culture, or even recommend some defectors to be put on development plans.
Applying “Tit for Tat”
As you might have gathered from the above examples, the “tit for tat strategy” is a template that can be applied to many situations with success.
Here’s how we can generalize our approach:
- Initial Cooperation: Start by cooperating with colleagues. Offer help, share information, and build trust.
- Strategic Retaliation: If someone takes advantage of your cooperation, respond appropriately. Retaliation does not mean just addressing the issue directly with them. It means using existing power structures to put your opponent at a disadvantage, while also making sure they are aware that you are retaliating in response to their defection.
- Quick Forgiveness: After addressing conflicts, be willing to return to cooperation. If the colleague apologizes or changes their behavior, resume a collaborative approach. This maintains a positive working relationship and prevents long-term animosity.
- Build Alliances: Constantly form alliances with colleagues who share your goals. This can be particularly effective in complex projects, or long term initiatives, where collaboration is essential for success.
Conclusion
Applying game theory to your career strategy offers a powerful framework for navigating professional challenges. By understanding and leveraging principles of cooperation, retaliation, and strategic adaptability, you can significantly enhance your career development.
Focus on long-term success, build alliances, and don’t be a pushover.
Above all else, pay close attention to the concept of power…
As you can see in all of the examples we’ve given above, the success or failure of a particular career strategy, including any kind of response to a defection, requires the utilization of power.
This article gives you the map, but the vehicle is power. You need to understand how power works next.