Gamification and finite and infinite games

Ok here I’m integrating a few concepts that I learnt via Venkatesh Guru Rao. The first is that of Finite and Infinite games, a classic if hard to read book written by philosopher James Carse (which I initially discovered thanks to his Breaking Smart Season 1 compilation). The second is of “playflow”, which again I discovered through a recent edition of his newsletter.

A lot of companies try to “gamify” the experiences for their employees in order to make work more fun, and to possibly make them more efficient.

For example, sales organisations offer complicated incentives (one of my historically favourite work assignments has been to help a large client optimise these incentives). These incentives are offered at multiple “slabs”, and used to drive multiple objectives (customer acquisition, retention, cross-sell, etc.). And by offering employees incentives for achieving some combination of these objectives, the experience is being “gamified”. It’s like the employee is gaining points by achieving each of these objectives, and the points together lead to some “reward”.

This is just one example. There are several other ways in which organisations try to gamify the experience for their employees. All of them involve some sort of award of “points” for things that people do, and then a combination of points leading to some “reward”.

The problem with gamification is that the games organisations design are usually finite games. “Sell 10 more widgets in the next month”. “Limit your emails to a maximum of 200 words in the next fifteen days”. “Visit at least one client each day”. And so on.

Running an organisation, however, is an infinite game. At the basic level, the objective of an organisation is to remain a going concern, and keep on running. Growth and dividends and shareholder returns are secondary to that – if the organisation is not a going concern, none of that matters.

And there is the contradiction – the organisation is fundamentally playing an infinite game. The employees, thanks to the gamified experience, are playing finite games. And they aren’t always compatible.

Of course, there are situations where finite games can be designed in a way that their objectives align with the objectives of the overarching infinite game. This, however, is not always possible. Hence, gamification is not always a good strategy for organisations.

Organisations have figured out the solution to this, of course. There is a simple way to make employees play the same infinite game as the organisation – by offering employees equity in the company. Except that employees have the option of converting that to a finite game by selling the said equity.

Whoever said incentive alignment is an easy task..

 

Gruffaloes and Finite Games

One story that my daughter knows well, rather too well, is the story of the Gruffalo. This is a story of a mouse told in two parts.

In the first part, the mouse fools a fox, an owl and a snake from eating him by convincing them that he’s having lunch, tea and dinner respectively with a supposedly imaginary creature named “Gruffalo”. And when they each ask him what the Gruffalo is like, he makes up stuff fantastically (terrible teeth in terrible jaws, turned out paws, etc.).

Except that midway through the story there is a kahaani mein twist, and the mouse actually encounters the gruffalo. In the second part of the story, the mouse tells the gruffalo that he is going to have lunch, tea and dinner with the fox, owl and snake, and prevents the gruffalo from eating him. And the mouse lives another day.

It is evidently a nice story, and the rhyme means that the daughter had mugged up the entire story enough when she was barely two years old that she could “read” it when shown the book (she can’t read a word yet). However, I don’t like it because I don’t like the plot.

One of the most influential books I’ve read is James Carse’s Finite and Infinite Games. Finite Games are artificial games where we play to “win”. There is a defined finish, and there is a set of tasks that we need to achieve that constitutes “victory”. Most real-life games are on the other hand are “infinite games” where the objective is to simply ensure that the game simply goes on.

From the point of stories, the best stories are ones which represent finite games, where there is a clear objective, and the story ends in “victory” or “lack of victory” (in the case of a tragedy). The Good, The Bad and the Ugly has the finite aim of finding the treasure buried in the graveyard. Ganeshana Maduve has the finite aim of YG Rao marrying “Shruti”. Gangs of Wasseypur has the finite aim of the Khan family taking revenge on Ramadhir Singh. Odyssey has the finite aim of Odysseus returning home to Penelope. And so forth.

Putting it another way, finite games make for nice stories, since stories are themselves finite, with a beginning and an end. A story that represents an infinite game is necessarily left incomplete, and you don’t know what happens just outside the slice of action that the story covers. So infinite games, which is how life is lived, make for lousy stories.

And the gruffalo story is an infinite game, since the “game” that the mouse is playing in the story is survival – by definition an infinite game. There is no “victory” by being alive at the end of the day the story covers – like there is no she-mouse to marry, or a baby mouse to see for the first time, or a party to go to. It is just another day in the life of the mouse, and the events of the day are unlikely to be that much more spectacular than the days not covered by the story.

That is what makes the gruffalo story so unsatisfying. Yes, the mouse played off the fox, owl and snake against the gruffalo to ensure his survival, but what about the next day? Would he have to invent another creature to ensure his survival? Would the predators buy the same story another time?

I don’t know, and so the story rings hollow. But the rhyme is good, and so my daughter loves the story!