Author: Tom Watkin

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A Tale of Triumph and Tragedy: Leadership Lessons from TSR

In the world of business, charting the rise and fall of companies offers valuable lessons for aspiring leaders. One such cautionary tale is the story of Tactical Studies Rules (TSR), a renowned game company that revolutionized the tabletop role-playing game industry. TSR’s journey from a small basement operation to a cultural phenomenon, and eventually its tragic demise, presents valuable insights into leadership. In this post, we delve into the rise and fall of TSR and extract three crucial leadership lessons to be learned from their journey.

Who were TSR?

TSR was a company that made a significant impact on the gaming landscape. Forever, changing the landscape of table top games through the publishing of their iconic game, Dungeons & Dragons (D&D). Founded in 1973 by Gary Gygax and Don Kaye, TSR pioneered the concept of role-playing games, immersing players in rich fantasy worlds where they could create their own stories and adventures.

TSR started as a small basement operation, with Gygax and Kaye initially self-publishing their games. However, in 1974, they released Dungeons & Dragons, a groundbreaking game that would change the gaming industry forever. D&D quickly gained popularity and amassed a dedicated following. TSR’s success grew rapidly, and the company expanded its product line, introducing additional game modules, rulebooks, and merchandise.

Gary Gygax, founder of TSR and inventor of D&D

Lessons from the Rise

There are some key lessons we can take from the early growth of TSR that can be applied to our own leadership journeys.

Vision and Innovation: TSR’s success stemmed from Gygax and Kaye’s visionary leadership. They introduced a groundbreaking concept and created an immersive gaming experience that resonated with their target audience. As leaders, having a clear vision and fostering a culture of innovation are essential for long-term success.

Adaptability and Expansion: TSR’s ability to adapt to market demands and expand their product offerings played a crucial role in their rise. They recognized the need for diverse game modules and continually expanded their portfolio to cater to different player preferences. Effective leaders understand the importance of adapting to changing market dynamics and expanding their offerings to meet customer needs.

Nurturing a Passionate Community: TSR cultivated a passionate and engaged community around their games. They actively encouraged player engagement, organized conventions, and supported fan-generated content. This community became the backbone of TSR’s success, contributing to the longevity of their games and the company. Leaders should prioritize building and nurturing a passionate community around their products or services, as it creates a sense of loyalty and advocacy.

Lessons from the Fall

Despite their early triumphs, TSR faced several challenges that led to their downfall. The company suffered from financial mismanagement, internal conflicts, and an oversaturation of products. These factors, combined with a changing gaming landscape, ultimately resulted in TSR’s decline. In 1997, TSR filed for bankruptcy and was acquired by Wizards of the Coast for a reported $25M.

Financial Prudence and Stability: TSR’s downfall serves as a stark reminder of the importance of financial prudence and stability. Leaders must prioritize sound financial management, maintain a healthy cash flow, and be cautious when expanding too rapidly. Neglecting financial aspects can jeopardize even the most innovative and successful ventures.

Effective Communication and Collaboration: Internal conflicts and lack of effective communication were contributing factors to TSR’s demise. Leaders must foster a culture of open communication, collaboration, and mutual respect among team members. Encouraging transparency and addressing conflicts promptly can help prevent internal divisions that may undermine the organization’s success.

Market Relevance and Adaptation: TSR’s failure to adapt to the changing gaming landscape played a pivotal role in their downfall. The rise of video games and digital entertainment presented new challenges that TSR struggled to address adequately. Leaders must remain vigilant and continually assess market trends, embracing innovation and adaptation to stay relevant in an ever-evolving business landscape.

There are many leadership lessons to be learned from TSR

Final Thoughts

The rise and fall of TSR offer invaluable leadership lessons for entrepreneurs and executives alike. TSR’s success stemmed from visionary leadership, adaptability, and community engagement. Conversely, their downfall underscores the significance of financial stability, effective communication, and market adaptation. By learning from TSR’s journey, leaders can navigate the challenges of running a business and chart a course towards long-term success while avoiding potential pitfalls along the way.

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Failed Negotiation: A Real example from D&D

Today I want to discuss a failed negotiation that occurred in my Thursday night Dungeons and Dragons group. While the players were roleplaying their characters to the hilt, making some questionable decisions, I thought that there were some real learnings to be gleaned in the art of negotiation.

As Dungeon Master I had set up what I thought was a straight forward in-game negotiation. One that would take up half an hour at best. What transpired was a crazy rollercoaster of demands, ultimatums, alley chases and moral dilemmas. Three hours later and the Party was no closer to achieving their goal.

So what went down and what lessons can we learn?

Keep in mind that this was part of an ongoing campaign with well established characters. The players were heavily leaning into these characters, definitely not looking for the optimal outcome. Even so I think this example shows how you can gain real world leadership learnings through the medium of role playing games.

What Went Down

So as not to bore you I’m going to give you the basic framework of what went down. Ultimately, the player characters (PC) are the leaders of a now influential street gang. They needed the location of a key. The only person with this knowledge was the local Fence “Old Mog”. Go to Mog, find out what she wants, negotiate, get the location, move on. Simple. Or not! Here’s what happened:

  • Start discussions with Mog, fairly confrontational straight out of the gate, thinly veiled threats, posturing etc
  • Mog is open about what she wants (safety, by becoming part of the PCs street gang)
  • Party react aggressively and dive straight into an ultimatum
  • Mog demands a counter offer, as none is forthcoming
  • Counter offer does not take into account what Mog wants
  • Becomes clear that Mog is also negotiating with their arch enemies (shock, disbelief, anger)
  • Tempers flare, more ultimatums and threats are thrown around
  • Negotiations break down and Mog cuts a deal with the enemy
  • PC’s walk away empty handed.

Interestingly it seems like the PC’s treated the negotiation as a competition that ended in frustration and failure. So what could they have done differently? What can we, as learning leaders, gain from this experience.

BATNA

Firstly, what is BATNA? BATNA is an acronym that stands for Best Alternative To a Negotiated Agreement. This is what the best outcome would be if no agreement between the two parties can be reached. When entering a negotiation it is important to state what this is amongst your team. Understanding your BATNA gives you the ramifications of not reaching a deal.

Negotiating with a car salesman for example, the BATNA might be having to take public transport over the next week.

In the above D&D example the group didn’t even consider a BATNA to begin with. However, the consequences of not reaching an agreement was they wouldn’t get the location of the key they needed. Pretty straight forward. But not considered.

This meant that there was no strategy or no direction going in.

Understand What the Other Side Wants

The first part of any negotiation should be finding out what the other side of the negotiation wants. Often this may not be obvious at the very beginning. At this point all assumptions should be checked. As they may not be accurate. Once this understanding has been found it’s much easier to start crafting a mutually beneficial solution.

In the D&D negotiation example above, the Party did ask what Mog wanted. They got a response. She wanted to join their organization and feel safe in the area of her home. Unfortunately, this need from Mog was overshadowed by the competitive nature brought out by the act of negotiating. Which neatly leads to my next point.

Becoming overly competitive can lead to a failed negotiation

It’s Not a Competition

A negotiation is not a point scoring contest. It is not about having a winner or a loser. It’s about getting what you need and not agreeing to an outcome worse than your identified BATNA.

The problem can be that the act of negotiating brings out competitiveness in people. I remember an international Chief Sales Officer arguing for hours that in every negotiation there had to be a winner and a loser. He obviously didn’t think very highly of his customers, which is probably why he got fired a few months later. Ego takes over and the actual value of the outcome gets lost.

Back to the game. The Party didn’t define a BATNA, ignored what Mog wanted and went straight into competitive behavior. This included bullying, threats and ultimatums. Who wants to make a deal with people like that? Of course, Mog considered her BATNA and joined the opposition where she would be safe.

The result. A massive fail for our heroes.

Don’t let your ego lead to a failed negotiation. Stay calm and focused. Don’t lose your cool.

Final Thoughts on the Failed Negotiation

Despite the fact that this gaming session wasn’t being run as a Learning-RPG there are definitely some real world learnings to be taken from it.

If I was to run this type of scenario with leadership development in mind I would be tempted to have Mog played by a different person, not by me the DM. I’d give Mog a simple BATNA and guidance on motivations. I could then facilitate rather than be the focus of the players attention.

I would also give a clearer briefing to the players, defining set goals for their team. Lastly, a debrief after the scenario would put everyone’s actions into perspective.

Running the team through multiple negotiation scenarios with increasing levels of hostility and emotion from the opposition would provide an excellent experiential learning experience.

Lots of food for thought. I feel that this example really highlights the potential of using rpgs for experiential leadership learning.