Not a zero-sum game
1 February 2008 — Mark StaffordGame theory is a branch of applied mathematics employed in making high-level strategic decisions. There are a number of well-known applications of game theory, one of which is the zero-sum game. A zero-sum game is one in which the sum of all participants gains and losses is zero: that is, each participants gains or losses are exactly offset by other participants’ gains or losses. I have had the privilege of working for a number of noteworthy companies, each of which had their own unique perspective on IT-business alignment. It’s unfortunate that many of these companies treated alignment as if it were a zero-sum game. At the other end of the spectrum are the “synergy” companies. These positive thinkers portray the IT-business relationship as centered in a radiant beam of beautiful energy shining down directly from heaven. Doves flutter, angels sing, and IT and business just work harmoniously.
The truth is that aligning business and IT is a lot of work. Coming back to game theory, there is a better paradigm for this relationship: the prisoner’s dilemma. The prisoner’s dilemma is classically stated as follows: Two suspects, A and B, are arrested by the police. The police have insufficient evidence for a conviction, and, having separated both prisoners, visit each of them to offer the same deal: if one testifies for the prosecution against the other and the other remains silent, the betrayer goes free and the silent accomplice receives the full 10-year sentence. If both remain silent, both prisoners are sentenced to only six months in jail for a minor charge. If each betrays the other, each receives a five-year sentence. Each prisoner must make the choice of whether to betray the other or to remain silent. However, neither prisoner knows for sure what choice the other prisoner will make. So this dilemma poses the question: How should the prisoners act?
Prisoner A realizes that the best case scenario is for them to both stay silent and spend only six months in prison. The thought comes to him, however, that prisoner B may betray him. If the B betrays him and he stays silent, he’ll spend 10 years in jail. If he betrays prisoner B, he’ll either go free or only spend five years in jail. This results in a Nash equilibrium, which is a fancy way of saying that more often than not, both prisoners will betray the other.
It frequently seems as if business and IT find themselves in the same scenario. As an IT guy, I have harbored more than my share of grudges at what sales people make (both promises and salary). The thought surfaces, “They wouldn’t have anything to sell if it wasn’t for me!” I’m sure the equivalent thought surfaces on the business side. But despite the analogy to the prisoner’s dilemma, there is a fundamental difference. There can be communication between business and IT. Although it is arguably as difficult as facilitating communication between prisoners in different cells, communication between business and IT can be facilitated and can create a synergistic relationship.
The intent of this blog is to chronicle one IT guy’s attempt to understand and communicate across the divide to the business side. As such, there should be very few technical posts here that lack a statement of a business case. And maybe, just maybe, someone reading this blog might someday hear angels singing.
