The Infinite Game
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Read between July 2 - July 9, 2023
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When we lead with a finite mindset in an infinite game, it leads to all kinds of problems, the most common of which include the decline of trust, cooperation and innovation. Leading with an infinite mindset in an infinite game, in contrast, really does move us in a better direction. Groups that adopt an infinite mindset enjoy vastly higher levels of trust, cooperation and innovation and all the subsequent benefits.
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to succeed in the Infinite Game of business, we have to stop thinking about who wins or who’s the best and start thinking about how to build organizations that are strong enough and healthy enough to stay in the game for many generations to come.
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Any leader who wants to adopt an infinite mindset must follow five essential practices: Advance a Just Cause Build Trusting Teams Study your Worthy Rivals Prepare for Existential Flexibility Demonstrate the Courage to Lead
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When we play in a finite game, we play the game to win. Even if we hope to simply play well and enjoy the game, we do not play to lose. The motivation to play in an infinite game is completely different—the goal is not to win, but to keep playing. It is to advance something bigger than ourselves or our organizations.
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A Just Cause is a specific vision of a future state that does not yet exist; a future state so appealing that people are willing to make sacrifices in order to help advance toward that vision.
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A Just Cause is not the same as our WHY. A WHY comes from the past. It is an origin story. It is a statement of who we are—the sum total of our values and beliefs. A Just Cause is about the future. It defines where we are going.
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A Just Cause must be: For something—affirmative and optimistic Inclusive—open to all those who would like to contribute Service oriented—for the primary benefit of others Resilient—able to endure political, technological and cultural change Idealistic—big, bold and ultimately unachievable
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Money is the fuel to advance a Cause, it is not a Cause itself. The reason to grow is so that we have more fuel to advance the Cause.
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What many leaders in business practice these days is more of an abuse of capitalism, or “capitalism abuse.”
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And if capitalism was intended to benefit the consumer and the leaders of companies were to be the stewards of something greater than themselves, they are not using it that way today.
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“A business that makes nothing but money is a poor kind of business.” Companies exist to advance something—technology, quality of life or anything else with the potential to ease or enhance our lives in some way, shape or form.
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bastardized capitalism that is organized to advance the interests of a few people who abuse the system for personal gain, which has done little to advance the true benefits of capitalism as a philosophy (as evidenced by anticapitalist and protectionist movements around the globe). Indeed, the entire philosophy of shareholder primacy and Friedman’s definition of the purpose of business was promoted by investors themselves as a way to incentivize executives to prioritize and protect their finite interests above all else.
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If we are using a flawed definition of business to build our companies today, then we are likely also promoting people and forming leadership teams best qualified to play by the finite rules that Friedman espoused—leadership
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If the investor community followed Smith’s philosophies, they would be doing whatever they could to help the companies in which they invested make the best possible product, offer the best possible service and build the strongest possible company. It’s what’s good for the customer and the wealth of nations. And if shareholders really were the owners of the companies in which they invested, that is indeed how they would act. But in reality, they don’t act like owners at all. They act more like renters.
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Advance a purpose: Offer people a sense of belonging and a feeling that their lives and their work have value beyond the physical work. Protect people: Operate our companies in a way that protects the people who work for us, the people who buy from us and the environments in which we live and work. Generate profit: Money is fuel for a business to remain viable so that it may continue to advance the first two priorities.
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Will, in contrast, is intangible and harder to measure. When we talk about will, we’re talking about the feelings people have when they come to work. Will encompasses morale, motivation, inspiration, commitment, desire to engage, desire to offer discretionary effort and so on. Will generally comes from inside sources like the quality of leadership and the clarity and strength of the Just Cause. Will represents the sum of all the human elements that contribute to the health of the organization.
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If the actual costs are net neutral, then the difference in how we treat people is simply a matter of mindset. And it is because of that alternative mindset that Apple and Costco enjoy average retention rates around 90 percent, when the average in the rest of retail is 20 to 30 percent.
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One reason companies that operate with a bias for will ultimately fare better in the Infinite Game has to do with what we can control. Though we have control over how we spend or manage our money, we have a lot less control over how we make it. Politics, economic cycles, market fluctuations, the actions of other players, customer preferences, technological advancements, the weather and all other forces majeures can wreak havoc with our ability to amass resources. Leaders can exert only limited control over any of these things. However, leaders have near total control over the source of will. ...more
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The ability to succeed is not what makes someone a leader. Exhibiting the qualities of leadership is what makes someone an effective leader. Qualities like honesty, integrity, courage, resiliency, perseverance, judgment and decisiveness, as the Marines have learned after years of trial and error, are more likely to engender the kind of trust and cooperation that, over the course of time, increase the likelihood that a team will succeed more often than it fails.
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cultures that place excessive focus on quarterly or annual financial performance can put intense pressure on people to cut corners, bend rules and make other questionable decisions in order to hit the targets set for them. Unfortunately, those who behaved dubiously but hit their targets are rewarded, which sends a clear message about the organization’s priorities.
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When leaders use process to replace judgment, the conditions for ethical fading persist . . . even in cultures that hold themselves to higher moral and ethical standards.
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The Courage to Lead is a willingness to take risks for the good of an unknown future. And the risks are real. For it is much easier to tinker with the month, the quarter or the year, but to make decisions with an eye to the distant future is much more difficult.