Let’s set the scene. You walk into a meeting. Sharon from Operations is already eyeing the last biscuit. Legal wants more time, Finance wants less budget and you (poor you) just want alignment.
Welcome to corporate life my friend, where everyone’s playing a game... even if nobody told you the rules. That’s where The Game Theory comes in.
What Is Game Theory, Anyway?
Game theory is a psychological and strategic model that explores how people make decisions based on the choices of others. It’s not about “checkmate” - it's about insight. About understanding that in the corporate world, every move you make triggers a ripple effect.
It’s Love Island meets The Apprentice, just with KPIs.
The Office Jungle: Leadership in Action
1. The Bluffing Boss
You know the type. Announces a 'restructure' to keep everyone on their toes but hasn’t actually spoken to HR. Yeh we see you big Dave…
- Game Theory move: Classic strategic uncertainty.
- Psychology take: Using anxiety as a motivator taps the limbic system, but not in a good way. Chronic stress reduces trust and innovation.
- Moral of the story: If your team’s constantly guessing, they’re not strategising; they’re surviving.
2. The “My Door’s Always Open” Leader (Except Emotionally)
Lovely in theory. But if every conversation with you feels like an interview on Dragon’s Den, your team won’t bring their ideas to you, or their problems.
- Game Theory move: You expect transparency but don’t reciprocate.
- Psychology take: Without psychological safety, communication shuts down. The prefrontal cortex goes offline. Welcome to amygdala-overdrive.
- Better move: Create a feedback loop that’s actually safe. People can’t innovate if they’re stuck in fight-or-flight mode.
3. The Over-Collaborator
These leaders hold so many roundtables, you sometimes wonder if you’ve joined King Arthur’s court.
- Game Theory move: Trying to win by pleasing everyone: a.k.a. the coordination game.
- Psychology take: Over-collaboration = decision fatigue. Cognitive overload kills clarity.
- Tip: Empower don’t just consult. Not every decision needs a UN summit.
Why Game Theory Should Be in Every Leader’s Toolkit
1. It reframes conflict
2. It upgrades your empathy
3. It enhances the efficiency of meetings
Real-Life Example: The Budget Showdown
You’re a Head of Function. Your budget’s been halved but your deliverables just doubled. You need buy-in from a cross-functional team.
You could:
A) Guilt-trip them
B) Go silent
C) Use cooperative game theory to align incentives.
The smart move? You share visibility. You map their goals. You find shared wins. Now you’re not taking; you’re creating.
Final Thought: Are You Playing the Game or Changing It?
Game theory doesn’t mean being manipulative. It means being mindful.
It means recognising that in every email, every one-to-one, every “quick Teams call”, there’s a choice. You can play to win or you can play to elevate.
So ask yourself: Are you leading like a tactician or reacting like a pawn?