What a Poker game taught us about decision making

 What the Poker game taught us about decision-making

Our team had half a full day of training/teambuilding hosted by Ember Associates. This innovative training consultancy hosts it every week. We didn't do the traditional treasure hunts or team building activities. Instead, we learned the art of decision-making through poker games. It's Texas Hold'em Poker Time, y'all.

Raaise, call, fold

Some of us had played before, but most are brand new. For a start, we did a brief introduction to the type and rank of poker hands (a set with 5 cards) and the different rounds of betting. Although I won't go into too much detail, it's important that you know that Texas Hold'em offers several rounds for betting. Each round offers you the chance to call (accept last bet, follow), to raise (increase stake), or to fold your hand (lose whatever you put into the pot). When you have to decide when and how high to raise, things get very interesting.

Play for money

The early stages of the game will see players from around the table placing small bets into the pot. The only way to know if you have good or bad hands is by looking at the two blinds. The novice players will typically call and follow at this stage. To increase your chances of winning, we first need to learn that you want to eliminate as many people as possible in this stage. Each additional player on the table reduces your chance of winning a game of poker. You must first eliminate poor players by increasing stakes. The rational players will concede and lose blind bets.

Make sure you know your odds

Second lesson: Know the difference between good and bad hands. A pair with aces is the best possible hand, while a pair with five is more likely to be a poor choice. An investment decision is only possible if you have an understanding of high and low value. It is important not to leave things up to chance. Try to increase your chances of winning every chance you get.

It is not possible to make a good decision that will lead to a positive outcome

I've already mentioned that a 2-5 combo is not a good combination. This hand was presented to yours truly in session. As it turned out, if I had kept playing, I would have won with a full house. In hindsight we realized it was a smart decision to fold the 2-5 hands. The odds of this hand winning the pot are only 2.6% in Poker. This is the lesson. One bad decision will not result in a great outcome. It can increase your chances of winning or reduce the risk of losing everything. Despite all our efforts, it is possible for the outside to win.

The result is what people focus on in the corporate world. Of course, phrases such as goal-oriented and target-focused are frequently used. It's easy for people to forget that good decisions are what you should be focusing on. Let the cards roll. You should reflect more on yesterday, today, and next month to determine whether you made good decisions.

There are risks and rewards

We had another situation in which there were two players remaining at the table. The winning player has lots of chips. The other player is losing chips, but has been increasing the stakes steadily. This shows some confidence. The showdown begins after the last card is revealed. As expected, the first raise was made by the other player. But the other player decided to go all-in. Now, the first player must decide if they want to fold or call.

Calling is the best option in such a situation. The risk is acceptable but the potential rewards could be great. Even if the player loses, the first person would still have more chips. However, if the game goes well, this player will have the chance to win a huge pot and eliminate a player.

It was interesting to see what happened next. The second player was the winner because he managed to get a 4-of-a-kind. Texas Hold'em has a 0.17 percent chance of getting a 4-of-a-kind, so a good choice does not guarantee a favorable outcome.

This lesson teaches us that the reward should be greater than the risk. As you have a greater chance of winning, a strong hand is essential. If your probabilistic reward value, less your stake, is positive, you should take your chances.

Imperfect Information

Texas Hold'em Poker is a game of imperfect information, time pressure and high stakes. Some information is gleaned from the cards that are visible at the table. You can then read the actions and reactions of other players. Knowing their personalities will help you to understand them better. However, you won't have all the details, just like in business.

The pressure is on to do something, to raise, call, or fold. If you choose to stay, the stakes will keep increasing. You should get out if you are unable to take the heat or risk losing everything.

It is important to be aware of the odds and maintain a cool head in order make sound decisions. We believe that good decisions will lead to lady luck. Decision Oriented Poker