Leadership Lessons From The Poker Table

Poker, the little game that took hold in the 1800's,hand and their opponent draws, against the odds, the
has grown into a global phenomenon. From cardcard that they need. I can say from experience that
rooms to house games, from the World Series ofthis is no fun. I can also say that this is a fact of
Poker to the Internet, people are smitten with thispoker. Many times, no matter how well you are
game and as with most games, poker parallels life.positioned, there are several cards still in the deck
We can, in turn, learn a lot from poker.that can ruin your day and deplete your chip stack.
On the surface, poker is a game of card hands,The best players put the hand and the urge to get
bluffs and strategic betting. Beneath the surface,emotional behind them and move on with grace,
however, poker is an intricate dance of riskdignity and continued disciplined play. In short, they
management, resource management, and psychology.do not let bad luck effect future play.
It is a great opportunity to improve your ability toYou will as a leader have real life bad beats. You will
navigate the tricky world of leadership.do everything right. You will identify an opportunity,
Know the table and know your hand:you will formulate a plan, you will request and acquire
You cannot win, if you do not know the rules.the right opportunities and you will execute well. In
Converting your hand to the best possible payoffthese cases, however, you will fail. It happens to
within these rules is the only way to win. Theeverybody and it will happen to you. When it
hierarchy of hands, wild cards, the number of players,happens, move on, learn lessons, and continue to
betting order, and card exchanges all affect your playexecute. Keep up your morale and that of your team
and your decision to hold 'em or fold 'em. In oneby putting the failure behind you.
hand, for example, a deuce may be worthless. InPlay the man:
another hand, a deuce may be a wild card that canPoker is a game of cards, but the truly exceptional
provide the crucial piece in making three of a kind. Inplayers engage the opponent. They hone their skills
short, the rules define how you manage yourof perception and psychology to identify behavioral
resources.trends as a window the their opponents hands.
As a leader, you need to practice this same insight inEverybody has tells or small idiosyncrasies that
your day-to-day operations that you would at thetelescope their moves or the cards in their hand.
card table. You must define what defines successAdditionally, betting patterns can tell you a great deal
and how your resources will allow you to reach yourof the personality type of your opponent, the
objectives. When you lack the sufficient resources tostrength of their hand and their potential reaction to
compete effectively, get out. If you decide toyour moves. Identifying and using this information
compete, you must constantly assess and re-assessallows you to mitigate risk and make more informed
of your operating environment and how yourdecisions.
resources enable you to accomplish your objectivesTo lead, you must understand people and react to
within the environment.their needs, wants, fears, desires and behavior.
Odds influence decisions:Unfortunately, most of the time, your team
In poker, the decisions are seemingly simple - check,members and colleagues will not necessarily openly
bet, call or fold. Behind each one of these decisions,share these aspects of their psyche. To be honest,
however, an intricate analysis takes place. As a playerthey might not even know these things about
you must decide whether the risk associated with athemselves. You must, therefore, observe the
decision has a sufficient payout to offset thebehaviors of those with whom you work, analyze
assumed risk. This is called pot odds and it is a basichow this should affect your behavior and alter your
tenet of poker strategy. Basically, whenever facedstyle to most effectively work with them.
with a decision, you evaluate the hand you hold, theShort-stacked is down, but not out:
ability to make a future hand and the likelihood thatIn poker, when you are short stacked, you have less
your opponents have a better or will make a betterchips that your opponents. This is an obvious
hand. If the odds are favorable or if there is adisadvantage, but a good player knows that things
payout large enough to reward a risky move, youcan change quickly with skill and luck. In fact, there is
stay in. If not, you get out.a poker saying that state, "To win, all that you need
Good leaders must understand and embraceis a chip and a chair." Players in this situation, play
effective risk management to succeed. Rarely, ifmore conservatively a bit, pick the hands they play
ever, will a decision be devoid of risk and certainmore carefully and often engage opponents who
decisions will have significant risk. It is those leadershave less of a chance to bully them out of the hand.
who can quickly determine the return-on-investmentIn short, they make every chip count.
for a decision or commitment of resources,Leadership is no different and the truly gifted leader
therefore, who succeed. This insight allows them tolooks at resource issues as constraints and not
choose to act or not act with courage of convictioninsurmountable obstacles. They assess how these
and confidence in their decisions.constraints affect their business and alter their
Respect Luck:decision making to take the full advantage of their
There is a poker term called the bad beat. In theselimited resources.
situations, one player is the odds on favor to win a