The Rules of The Game

I love two things in this world: Money and Lazer Tag.

Games. We all play them. What’s the first thing you must do before excelling at any Game? Learn the rules. I don’t care whether it’s poker, baseball, High Finance, or Lazer Tag. Without understanding the underlying concepts of how to win at that game, your odds of doing so are next to nothing. To succeed is often to play within the rules but use them to your advantage. Which brings us to the thought of the day:

Business (a Game) is not fair. Any Game is only meritocratic within the constructs of power (Rules) that precede the semblance of meritocracy.

The Rules of The Game will necessarily change depending on what Game is played. Sometimes they allow for more creative choices and other times The Rules constrain players so much there is little variation between players in thought or strategy, so execution becomes the critical factor. The first question one might ask himself as a professional is, “What game to I want to be playing?” This is akin to “What career path do I want to excel in?” while keeping in mind that he thrives best in certain environments and not others…

As far as I’ve been able to discern, there are five major stages or roles in someone’s understanding of any game: the Shithead, the Marksman, the Major, the General, and the Rebel. One does not necessarily reach or spend time at all of these stages. Some never make it past being a Marksman. Others become a General by the age of 25. Still others begin as Shithead, reinvent themselves, and end up a Rebel. The choice is really up to you. Think of these positions as a framework for you to play with yourself, not a prescription for how your career has to be.

It’s not always that one’s understanding of The Rules of The Game allow him/her to progress to one of the later stages, but judging by the types of personalities that frequent WSO and for the sake of brevity, I will dangerously presume that most of you would like to achieve either General or Rebel status at some point. Let’s dive in.

1) The Shithead – one who gets used to The Rules but doesn’t adapt to them. The weakest member of the team, who requires the time, effort, and energy of those around him to ensure he adds to the team’s overall success. He will not progress past this lowly position until he understands The Rules and acts accordingly.

In finance, this is a guy who bitches and moans on a daily basis to his buddies about the status quo. By not adapting to The Rules, he’s buying himself a one-way ticket out of banking when his two years are up. He’s constantly getting crushed by late night work because his team members feel no remorse for dumping shit on his desk. When in pain, few are there to lend a helping hand, because his lack of appreciation of The Rules and his surroundings make him impossible to coach, assist, or just be productive. He’s worried so much about himself that he is not an asset to the team.

In Lazer Tag, this is the dumbass who, although he has been told he must hold onto the gun with TWO HANDS to fire, doesn’t do it. He’s an easy target for opponents to exploit. His teammates hate him. Next time they go play, he won’t be invited.

2) The Marksman – one who gets used to the rules and begins to adapt to them. This guy gets it. He’s used to it. Some Marksmen, if they’re savvy enough, skip right over the shithead phase because they appreciate the importance of The Rules from the get-go. These guys are students of The Game, comprehend it, and just ‘figure it out.’

In finance, this is a team member who realizes that he has a role to play, even if he’s not the top dog. Thinking, “How can I add to my team’s success? What can do I within the present constructs of power to achieve, to win?” He tries to help out the shitheads by teaching them The Rules but soon realizes it’s a time sink.

In Lazer Tag, this is a guy who understands that two hands are necessary to fire the gun, does so, and begins actually hitting his targets. He starts to get a feel for The Game and begins to enjoy it, too. Sometimes he brashly rushes out for a glory run and is cut down, but not before sniping one or two opponents. His teammates appreciate his honest effort and loyalty.

3) The Major – this guy runs his own team or fiefdom within an organization, taking advantage of the rules to further his own professional career and personal desires. At this point, he’s relatively set within the organization and his career is stable, having established himself as competent and as someone who plays by The Rules.

In finance, this is the sub-leader or middle manager of a group. In IBD, maybe he’s the Senior VP, or in PE he’s the Investment Manager/Principal. He has a bunch of guys working for him and busting their ass for him, but in return he lends advice and help when necessary. Not always out of benevolence, but to make sure his team gets it done. Those are The Rules, after all…

In Lazer Tag, he’s comfortable picking off opponents from behind a strategically-located wall. His subordinates provide cover fire, ensuring no one sneaks around from behind. Yelling for the Marksman to make a run for it, while himself patiently waiting and ripping off a round of fire only when is necessary, the Major is guarded by his subordinates, which ultimately leads to his success. Every now and then, he’ll sacrifice himself for teammates just to they know he ‘has their back.’

4) The General – he’s made his way to a serious position of power and begins to influence those beneath him. In essence, he’s beginning to impact The Rules from a top-down approach. He’s become a decision-maker. A mover. A shaker. He plays by The Rules, but has learned so much about The Game he knows which ones to break and which ones to obey. Going for the ‘moonshot’ or ‘long ball’ more often, he actually has the ability and expectation to become a star within the organization. He also knows the other players, because they’ve faced off in the arena so many times before.

In finance, this guy begins to change company culture. Maybe he’s the Managing Director or a Partner, or what have you. Others block and tackle while he heads out for the big fish and takes home run swings. He makes it rain. He also knows that the fewer changes to The Rules he makes, the longer he stays atop The Game leaderboards. Conservatism is his middle name.

In Lazer Tag, this is the guy you hate to play, because you lose every time. He’s an expert at sticking his head around a corner without exposing his vest or gun. You know where he is, but he’s impossible to take down. His experience also lets him make game-changing plays. This is the guy who strategically advances to the opposing team’s side and fires at the base itself, racking up huge points that eventually leads his team to victory. Bypassing the crossfire on the battlefield, he takes control of the game leveraging his experience and knowledge of The Rules.

5) The Rebel – One who does not get used to The Rules. This guy says, “This Game sucks. I can design a better version myself. I’m not sticking around to get good at a game I don’t really want to be the best at. I’d rather do X!” The Rebel wants to define the company culture. Often, The Rebel really can’t handle The Rules of The Game and realizes he won’t be successful within that construct, so he creates something on his own. It’s important to note that this could happen at any time in one’s career – junior, mid-level, and senior guys alike sometimes realize they’re playing the wrong Game altogether.

In finance, this is akin to someone leaving a bank to create his own advisory firm. Realizing they won’t become partner, they set off on their own, bringing their expertise and rolodex with them. Maybe the new business isn’t even finance-related, but he takes all the understanding of one Game and brings it to another Game, often where comprehension of the first is lacking.

In Lazer Tag, this is the guy who plays one round and then leaves. Off he goes, to invent a new version, one in which there are three teams, or a shield button, or variable health. Something different. Or it’s the guy who says he can make the gun and vest cheaper. Or can design the arena more efficiently. If it weren’t for this guy, Lazer Tag wouldn’t have any serious innovations. Which, let’s be honest, would be tragic.

So maybe that was a gross oversimplification and there are assuredly other personalities in the mix as well. But the takeaway here I think is straightforward:

You need to first understand The Rules if you want to be successful playing The Game. Not knowing there’s a three point line in basketball places you at a severe disadvantage. Not understanding that you’re able to mortgage your properties in Monopoly may totally screw your chances of winning. Similarly, in finance, not comprehending how the players in your professional ecosystem fit together, and your position within that ecosystem, could be deadly.

Don’t bring your knife to a gun fight.