Poker and Business: The Art of Negotiation
Last night, after the shittiest of days possible, I decided to go down some martinis and play some poker. While taking my poor opponent's money, I was thinking of all the ways business and poker are alike. My friend felt a little bad about taking someone's money, but as I explained to her: THAT IS THE ENTIRE POINT. Poker players don't arrive to the table to create lasting, meaningful relationships--they're there to collect. And if you aren't on top of your game, focused, and calm--collect they will! Business professionals of all types need to understand one constant in today's marketplace: To effectively manage individuals and teams or lead negotiations with partners, you have to have an intuitive sense of what people are thinking, doing and sensing.Tonight, I was at Barnes and Noble and saw a book called The Poker MBA: Winning in Business No Matter What Cards You're Dealt, whose premise I'm assuming is that poker strategy and business strategy are analogous. I barely skimmed this one and instead bought Play Poker Like the Pros which I've been told has a lot of strategy tips in it. Anyways, analogies between poker and business abound for several reasons, namely, both are about reading your opponent. Don't assume that they think like you, often they don't. Also, good businessmen and poker players alike tend to think outside the box and play from their opponents' persepective. Knowing what you're up against is the only way to prevail.
In business negotations, parties do not have the same resource to compete with. Parties are also coming from different emotional states. One side may be very desparate to get a deal doen while the other has enough money to wait out the deal and see if something better comes along. The individual skill in such settings is how you use your resources and emotions and play with the hand that has been dealt to you. This is poker at its finest.The poker face is integral to playing, whether you're on the table or in the boardroom: if your down and out, the last thing you want to do is let your opponent know. Same thing in business--For instance, I met a amiable prospect tonight after two straight days of sheer failure, rejection, and self-wallowing--if I had carried that to my next interview--you can bet that person would absorb my negativity and leave me in the dust. Instead, I feigned glee and professionalism--she appreciated the information I passed down to her (we were discussing her retirement and estate planning options) and she instantly referred me to two other prospects. She also scheduled to see me again next week for what I hope will be a closing.
If you have a good hand, you still need to analyze what your opponent has and how he or she is betting. But what if they are bluffing? Don't we bluff in business deals as well. The same pshychology that goes into learning your opponent and determining if they are bluffing you based on the card showing is the same skill we need to sit across from someone at a negotiation table and determine what they are offering and what we can offer.
Speaking about information -- business is ultimately about the gathering and dissemination of information. In poker, you need to see things from a 360 degree angle and keep all the information you've gleaned to yourself. I play chess as well--that game is more strategy than emotion. Poker is both about strategy and emotional control. It is a zero sum game where the coolest head wins the pot. Save the stage antics and celebrating AFTER you've won. In the meantime, run the table like you run your business and more likely than not, both will end up in the black.
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