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Infinite games, in contrast, are played by known and unknown players. There are no exact or agreed-upon rules. Though there may be conventions or laws that govern how the players conduct themselves, within those broad boundaries, the players can operate however they want. And if they choose to break with convention, they can. The manner in which each player chooses to play is entirely up to them. And they can change how they play the game at any time, for any reason.
Infinite games have infinite time horizons. And because there is no finish line, no practical end to the game, there is no such thing as “winning” an infinite game. In an infinite game, the primary objective is to keep playing, to perpetuate the game.
In a finite game, the game ends when its time is up and the players live on to play another day (unless it was a duel, of course). In an infinite game, it’s the opposite. It is the game that lives on and it is the players whose time runs out. Because there is no such thing as winning or losing in an infinite game, the players simply drop out of the game when they run out of the will and resources to keep playing. In business we call this bankruptcy or sometimes merger or acquisition. Which means, to succeed in the Infinite Game of business, we have to stop thinking about who wins or who’s the
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The true value of an organization is measured by the desire others have to contribute to that organization’s ability to keep succeeding, not just during the time they are there, but well beyond their own tenure.
Players with an infinite mindset want to leave their organizations in better shape than they found them.
Where a finite-minded player makes products they think they can sell to people, the infinite-minded player makes products that people want to buy. The former is primarily focused on how the sale of those products benefits the company; the latter is primarily focused on how the products benefit those who buy them.
To ask, “What’s best for me” is finite thinking. To ask, “What’s best for us” is infinite thinking. A company built for the Infinite Game doesn’t think of itself alone. It considers the impact of its decisions on its people, its community, the economy, the country and the world.
The infinite-minded player, in contrast, expects surprises, even revels in them, and is prepared to be transformed by them. They embrace the freedom of play and are open to any possibility that keeps them in the game. Instead of looking for ways to react to what has already happened, they look for ways to do something new. An infinite perspective frees us from fixating on what other companies are doing, which allows us to focus on a larger vision. Instead of reacting to how new technology will challenge our business model, for example, those with infinite mindsets are better able to foresee
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The United States operated as if the game were finite instead of fighting against a player that was playing with the right mindset for the Infinite Game they were actually in. While America was fighting to “win,” the North Vietnamese were fighting for their lives!
How a company is led must also be considered. Prioritizing comparison and winning above all else, finite-minded leaders will set corporate strategy, product strategy, incentive structures and hiring decisions to help meet finite goals. And with a finite mindset firmly entrenched in almost all aspects of the organization, a sort of tunnel vision results. The result of which pushes almost everyone inside the company to place excessive focus on the urgent at the expense of the important.
A finite-minded leader uses the company’s performance to demonstrate the value of their own career. An infinite-minded leader uses their career to enhance the long-term value of the company . . . and only part of that value is counted in money.
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
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
The requirement that a Just Cause be service oriented is consistent with how infinite games are supposed to be played. The infinite player wants to keep the game going for others. A leader who wishes to build an organization equipped for the Infinite Game must never make decisions solely to boost their own compensation.
It is this strong base of loyalty that gives any organization a kind of strength and longevity that money alone cannot provide. The most loyal employees feel their leaders genuinely care about them . . . because their leaders genuinely do care about them. In return, they offer their best ideas, act freely and responsibly and work to solve problems for the benefit of the company. The most loyal customers feel the company genuinely cares about their wants, needs and desires . . . because the company really does. And in return, this is why loyal customers go out of their way or pay a premium to
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Moon shots are bold, inspiring finite goals within the Infinite Game, not instead of the Infinite Game.
Indeed, Friedman insisted that “there is one and only one social responsibility of business, to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.” In other words, according to Friedman, the sole purpose of business is to make money and that money belongs to shareholders. These ideas are now firmly ingrained in the zeitgeist. Today it is so generally accepted that the “owner” of a company sits at the top of the benefit food chain and that business exists solely to create wealth, that we often assume that this was always
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The eighteenth-century Scottish philosopher and economist is widely accepted as the father of economics and modern capitalism. “Consumption,” he wrote in The Wealth of Nations, “is the sole end and purpose of all production and the interest of the producer ought to be attended to, only so far as it may be necessary for promoting that of the consumer.” He went on to explain, “The maxim is so perfectly self-evident, that it would be absurd to attempt to prove it.” Put simply, the company’s interests should always be secondary to the interest of the consumer
“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. That people are willing to pay money for whatever a company has to offer is simply proof that they perceive or derive some value from those things. Which means the more value a company offers, the more money and the more fuel they will have for further advancements. Capitalism is about more than prosperity (measured in features and benefits, dollars and cents); it’s
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As Dr. Stout explains in her book, The Shareholder Value Myth, “If 80 percent of the CEO’s pay is based on what the share price is going to do next year, he or she is going to do their best to make sure that share price goes up, even if the consequences might be harmful to employees, to customers, to society, to the environment or even to the corporation itself in the long-term.”
As King Louis XV of France said in 1757, “Après moi le dèluge.” “After me comes the flood.” In other words, the disaster that will follow after I’m gone will be your problem, not mine. A sentiment that seems to be shared by too many finite leaders today.
The defenders of finite-minded capitalism act in a way that actually imperils the survival of the very companies from which they aim to profit. It’s as if they have decided that the best strategy to get the most cherries is to chop down the tree.
executives need to go back to seeing themselves as stewards of great institutions that exist to serve all the stakeholders. The impact of which serves the wants, needs and desires of all those involved in a company’s success, not just a few.
A definition that understands that money is a result and not a purpose. A definition that gives employees and the people who lead them the feeling that their work has value beyond the money they make for themselves, their companies or their shareholders.
Simply put: The responsibility of business is to use its will and resources to advance a cause greater than itself, protect the people and places in which it operates and generate more resources so that it can continue doing all those things for as long as possible. An organization can do whatever it likes to build its business so long as it is responsible for the consequences of its actions.
A better question to ask is, “How do I create an environment in which my people can work to their natural best?”
When companies make their people feel like they matter, the people come together in a way that money simply cannot buy.
As it turns out, it’s very hard to sell drugs from a house in which there is a regular police presence outside. And so the tenants simply left. No doors bashed down. No lives put at risk.
It’s a phrase I will repeat again in this book: leaders are not responsible for the results, leaders are responsible for the people who are responsible for the results.
When problems arise, performance lags, mistakes are made or unethical decisions are uncovered, Lazy Leadership chooses to put their efforts into building processes to fix the problems rather than building support for their people.
Ethical lapses happen and are part of being human. Ethical fading, however, is not a part of being human. Ethical fading is a failure of leadership and is a controllable element in a corporate culture. Which means the opposite is also true. Cultures that are ethically strong are also a result of the culture the leaders build.
Operating with an infinite mindset, Patagonia’s intention is not to win or beat anyone else in their market. Rather, Patagonia is driven by a vision of the future in which they make high-quality products while causing the least harm and “use business to inspire and implement solutions to the environmental crisis.”
If we are a player in an infinite game, however, we have to stop thinking of other players as competitors to be beaten and start thinking of them as Worthy Rivals who can help us become better players.
The infinite-minded players understood that the best option for their own survival, and indeed the ultimate goal of an infinite leader, is to keep the game in play.
We can wait for a life-altering experience that shakes us to our core and challenges the way we see the world. Or we can find a Just Cause that inspires us; surround ourselves with others with whom we share common cause, people we trust and who trust us; identify a Rival worthy of comparison that will push us to constantly improve; and remind ourselves that we are more committed to the Cause than to any particular path or strategy we happen to be following right now.
Finite thinkers do not appreciate that an investment in people will ultimately benefit the company, the customer and their investments (and they probably also fail to recognize that it was their guidance that pushed the stock price down).
The Courage to Lead begets the Courage to Lead.