Poker and Business
When people first hear the word “poker” their immediate perception is – gambling!
It is inevitable that the concept of gambling arises when one speaks of, or hears about, poker, as this is where is started – its roots and foundations – the backrooms of bars, saloons and casino’s. But poker has come a long way since it was first introduced to the modern world in the late 1800’s. Poker has become a modern revolution – the fastest growing sport in the world and by the far the hottest trend in training and entertainment. But is it gambling? Consider the following…
Games of Chance
If and when you are playing a game of chance, there is absolutely no skill involved in playing this game, and therefore, there is never a guarantee that you will be a winner. In a game of chance, the power of winning is completely out of your control.
Consider the game of roulette. As a 100% chance based game there is NO opportunity for you to influence the outcome of the game in any way. You simply place your hard earned money on your lucky number, the croupier spins the wheel, and you pray that you get lucky! This is gambling in its purest and most obvious form.
Therefore, no strategy is required to win the game. In a game of chance, you cannot “win the game”, as no strategy can be developed or applied to maximize your utility. An individual’s utility refers to the satisfaction or outcome that he or she hopes to achieve in acquiring something, performing a task or reaching an end goal.
It is safe to assume that most individuals strive to maximize their utility, and that business is not simply a game of chance.
Games of Skill
In a game of skill on the other hand, the strategy you formulate, and hopefully abide by, plays a key role as to whether or not you are successful in the end. In games of skill, such as poker (and business!), your ability to think strategically and make decisions accordingly, determines whether – in the end – you are successful or not.
Poker is a game of calculated risk taking. It is 70% skill and 30% luck – exactly as in the business world.
In poker and business, participants must learn to think like game theorists and make their next move accordingly. They must consider the multiple levels and perspectives involved in making a choice, analyze and scrutinize this information, watch and observe the surroundings, and in turn use this information to formulate a decision that will have a long term positive effect on their (and their company’s) utility.
Poker and business are not games of chance (gambling) but rather strategic wars of skill, wit, calculated risk taking and cutting edge sales and negotiation techniques.