First, transform one-shot games into repeated games. The same healthcare organization restructured its diagnostic AI around ongoing cross-functional governance. Rather than IT judged solely on timeliness, clinicians on accuracy, and finance on costs, it established a bonus structure where 30 percent of each department’s performance evaluation came from the overall system’s success.

The result? The Nash equilibrium (in which each department chooses its best possible strategy) shifted from departmental optimization to system-level success. Cooperation became the rational choice. 

When departments know they’ll continue working together — and when their success depends on collective outcomes — behavior changes fundamentally.

Second, redesign your payoff structure. A telecommunications company moved from departmental budgets to a three-tier portfolio model: enterprise platforms funded centrally, cross-functional use cases funded through shared budgets, and departmental applications funded locally. This created natural incentives for collaboration on high-impact initiatives while maintaining autonomy for specialized needs.

Third, increase interaction frequency. Game theory proves that repeated interactions foster cooperation. Create regular cross-functional working sessions, shared project spaces, and rotation programs. 

One manufacturing company established weekly “value stream” meetings where engineering, operations, and supply chain reviewed progress together. The frequent touchpoints shifted behavior from territorial protection to collaborative problem-solving.