Organizations operate like game boards where individual actions ripple through teams. Game theory reveals how incentives drive behavior, often creating traps like the Prisoner's Dilemma. Leaders must design systems where rules naturally promote good outcomes by making consequences unavoidable.

For example, promotion systems should reward impact over likability to prevent zero-sum dynamics where strong performers leave. Clear expectations matter most, as they can forgive many sins. The article stresses that firing the bottom 10% can incentivize peer sabotage and that hiring should separate sourcing from evaluation to avoid friend networks inflating signals.

Salaries matching external offers create internal inequities, highlighting the need for transparent compensation frameworks.