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Co-operation versus Competition

28 July 2015 Written by 
Published in Integrated thinking

It is a known fact that an optimal way to managing risks is to maintain a portfolio with asset classes that work together to produce a higher return for a given unit of risk.

Entrepreneurs should consider pooling their resources to increase the probability of success for their respective projects. The following trailer (from the Beautiful Mind movie) underpins the Game Theory which won John Nash a Nobel Prize. “Nash: If we all go for the blonde...we block each other. Not a single one of us is gonna get her. So then we go for her friends, but they will all give us the cold shoulder because nobody likes to be second choice. Well, what if no one goes for the blonde? We don't get in each other's way, and we don't insult the other girls. That's the only way we win. “

Because the best result will come...from everyone in the group doing what's best for himself...and the group.” Don’t fight for narrow interest! Fight for yourself, yes AND the Group! That is the BEST RESULT!

Looking from another perspective, zero of 100% = zero! Lose-Lose outcome.

Underpinning the above is the issue of trust. Without trust, things move very slowly or not at all. Trust facilitates alignment of vision and values.

From an economic view point, it is the tool which greases the wheel of commerce. Transactions speed up and productivity increases. It is the foundation upon excellent value proposition is built. Without trust, modern-day commerce will come to a standstill.

Trust is easier to build when you have like-minded individuals pre-disposed to certain core values like competence, integrity, empathy and care. It is like a bank account, we all need to build up the credits to be drawn as and when appropriate. It is an invested capital that will help to drive sustainable value creation.

With the correct composition of individuals, trust can be built fairly quickly. It starts with as simple as: This is a guy I can do business with; I understand where he is coming from; his stance is reasonable and we can narrow down the differences and seek out solutions. We can get the job done! No time wasting! Such a team of qualified individuals will get down to the task of quickly articulating, communicating and executing well formulated strategy.

Read 3515 times Last modified on Tuesday, 28 July 2015 09:21
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