Ever wondered how a business can thrive by prioritizing purpose over profit? How does a CEO's mindset shape the future of a company? How does a company's purpose, or Just Cause, inspire passion and commitment among its stakeholders? How can cultivating a culture of trust enhance productivity and overall organizational success? Dive into this captivating narrative that explores these questions and more, shedding light on the importance of adopting an 'infinite mindset' in today's rapidly evolving business landscape.

The Infinite Game

In this world, we partake in two types of games: finite and infinite. Finite games have set rules, known players, and a clear endpoint. Think of a football match. 

On the other hand, infinite games, like life, business, or marriage, don't have a defined end, firm rules, or known players. They continue indefinitely, their goal being to perpetuate. This concept was introduced by Professor James P. Carse in his book "Finite and Infinite Games."

In business, there's no winning. Instead, the goal is to keep playing, evolving, and surviving. Many leaders, however, approach business with a finite, win-lose mindset. This leads to a decline in trust, cooperation, and innovation. On the contrary, leading with an infinite mindset fosters all these and ensures longevity.

Take Microsoft and Apple. At an education summit, Microsoft was obsessed over beating Apple, while Apple focused on helping teachers teach and students learn. When Microsoft launched Zune, its iPod competitor, there was no grand vision, just a competition for market share. They failed to realize they were in an infinite game and ended up stuck in a quagmire, exhausting their resources.

Infinite-minded leaders, like Apple, expect surprises and are ready to be transformed by them. They focus on a larger vision and innovate in ways finite-minded leaders can't. This mindset helped Apple think beyond the iPod and develop the iPhone, redefining the entire smartphone category.

To succeed in business's infinite game, leaders must adopt an infinite mindset. This involves advancing a just cause, building trusting teams, studying worthy rivals, preparing for existential flexibility, and demonstrating the courage to lead. While it's challenging to maintain an infinite mindset, straying from it will hurt the organization in the long run.

So, in a world of infinite games, let's choose to lead with an infinite mindset. This choice will inspire us every morning, make us feel safe at work, and fulfill us at the end of the day.

Are You Playing the Infinite Game of Business Like Apple or Stuck in the Finite Mindset Like Microsoft?

During the Nazis' brutal 900-day siege of Leningrad from 1941 to 1944, the city's residents faced unimaginable horrors. In a desperate bid for survival, they consumed pets, zoo animals, and even wallpaper paste. As the death toll climbed, an incredible secret lay hidden within the city: a vast collection of seeds and food supplies.

The seed collection was the life's work of Nikolai Vavilov, a dedicated botanist who had spent his career seeking solutions for hunger and ecological disasters. Over the years, Vavilov had collected seeds from over 6,000 types of crops and began experimenting with disease-resistant strains. His grand vision was to create a 'seed bank' for the world, a safety net in case of natural or man-made disasters that could wipe out food supplies.

Despite being arrested and tortured by Stalin's regime, Vavilov never abandoned his mission. Even as he died of malnutrition in prison, his seed bank, hidden away in Leningrad, remained intact.

As the siege raged on, Vavilov's team of scientists risked their lives to protect the seed bank, dedicated to a cause far bigger than themselves. As a testament to their commitment, nine of them starved to death, surrounded by food supplies they could have consumed, but chose not to. The seed bank was more than a collection of potential meals; it was a symbol of hope, resilience, and the will to endure.

Today, Vavilov's legacy continues. His seed bank served as the blueprint for nearly 2,000 seed banks across the globe, including the Svalbard Global Seed Vault in Norway, which stores over a billion seeds.

The story of Vavilov and his team serves as a reminder of the power of a collective cause. In a world often driven by short-term goals and individual wins, their sacrifice underscores the importance of having a clear, unifying mission - a 'Just Cause' - that inspires us to work towards a better future. This Just Cause should be resilient, enduring through political, technological, and cultural changes. It should be idealistic, ambitious, and, ultimately, unachievable - a beacon that continually guides us forward.

Whether you're a leader in business, science, or nation-building, a Just Cause can lend purpose and meaning to our work. It reminds us to look beyond our immediate horizon and consider the lasting impact of our actions. It encourages us to play an infinite game, to strive for continuing progress rather than finite victories. 

For a Just Cause to be effective, it needs to be service-oriented, benefiting others rather than ourselves. It needs to be resilient, enduring through times of change. And it needs to be idealistic, a lofty vision of the future that may never be fully realized but inspires us to keep striving. 

Seeds of Survival: Nikolai Vavilov's Legacy and the Power of a Just Cause

A company's purpose or "Just Cause" is more than a catchy slogan or corporate social responsibility (CSR) program – it's the bedrock of its existence. It's a deeply personal vision that inspires passion and commitment among stakeholders, from employees to customers. 

Unfortunately, many companies mistake finite goals, like growth or being the best, for a Just Cause. They focus on short-term achievements, unaware that they're playing an infinite game where there's no definite end or winner.

Take President Kennedy's moon shot, for instance. It was an inspiring goal, but it was finite. After the moon shot, the game continued. On the other hand, a Just Cause provides the context for all our finite achievements and goals. It's like a compass guiding us toward a never-ending journey of improvement.

This concept becomes clearer when we look at Walmart's history. Sam Walton founded Walmart with a clear Just Cause – to serve average Americans by offering the lowest prices anytime, anywhere. However, this vision became diluted over time, culminating in the tenure of Mike Duke as CEO, whose focus was primarily on profits and growth. The company's reputation suffered, and it became embroiled in numerous scandals.

The CEO's role, or rather, the Chief Vision Officer (CVO), is to safeguard and communicate the company's Just Cause. They must ensure that all other executives direct their efforts to advance this Cause within the organization. Think of the CVO as an infinite-minded leader responsible for the company's infinite game, while the CFO or COO, as finite-minded executives, handle the company's finite pursuits. Both roles are crucial and complementary.

Is Your Company Playing the Infinite Game: What's Your 'Just Cause'?

Today's businesses are facing a whirlwind of change, with company lifespans shrinking and disruptive technology reshaping entire sectors. 

However, it's not just technological disruptions that are causing companies to falter. It's the failure of leaders to envision the future of their businesses amid these changes. This shortsightedness stems from a mindset focused on finite goals, such as focing on shareholder value, a concept popularized by economist Milton Friedman in the 1970s.

Friedman argued that businesses exist solely to generate profits for shareholders. This idea is now deeply ingrained in our society, but it isn't the only way to play the business game. As we navigate the complex world of business, we need to remember that companies exist to advance technology, enhance quality of life, and essentially make our lives better. The money that people are willing to pay for a company's offerings is a testament to the value they see or derive from those offerings. So, the more value a company offers, the more money they will get for further advancements.

We need to break away from the finite-minded form of capitalism, which is primarily about creating wealth for a few, and embrace a more infinite-minded form that benefits everyone involved. This form of capitalism, based on the philosophies of Adam Smith, the father of modern economics, focuses on serving the interests of the consumer. It's not just about prosperity but also about progress, measured in terms of quality of life, technological advancements, and our ability to live and work together in peace.

A CEO's priority list reveals their mindset. If growth and customers come before people, it shows a bias towards resources. However, leaders with an infinite mindset understand that people are the backbone of any organization. They create an environment in which people can thrive, instead of just extracting more output from them. 

A case in point is The Container Store, which managed to weather the 2008 recession without layoffs. Instead, the company implemented a salary freeze and stopped matching 401(k)s, which not only saved money but also engendered a sense of camaraderie among employees, ultimately strengthening the organization's will to survive and thrive.

Breaking Boundaries: Shifting from Finite to Infinite Mindset in Business

In 1997, Shell assembled a team to construct the URSA, the world's biggest offshore deepwater drilling platform. Rick Fox, a no-nonsense, hardened leader, was chosen to spearhead this perilous venture.

However, the success of the project hinged on an unexpected strategy: the crew learning to express their feelings. This approach, proposed by leadership consultant Claire Nuer, ran against Fox's belief that showing emotions equated to weakness. Yet, after attending one of Claire's workshops, Fox was convinced of its value and hired her to work with his crew. 

What ensued was the formation of a psychologically safe space where crew members shared intimate stories and learned to listen to each other, fostering deep personal connections and trust. This experiment resulted in the URSA having one of the best safety records in the industry and significantly contributing to an 84% overall decline in accidents companywide.

Elsewhere, Jack Cauley, the newly appointed chief of Castle Rock Police Department, faced a culture of fear and mistrust among his officers. Drawing inspiration from Rick Fox's approach, Cauley engaged in a series of listening sessions with every member of the department, fostering an environment of trust and psychological safety. This allowed officers to freely express their feelings and concerns, leading to a significant transformation in the department's culture and a marked improvement in community relations.

These stories highlight the importance of cultivating a culture of trust within teams, whether in business or other sectors. Leaders must provide a safe space for employees to express their feelings and vulnerabilities, fostering a sense of psychological safety. This is crucial for building high-performing, resilient teams, leading to not just improved safety records or better community relations, but also enhanced productivity and overall organizational success. 

Leaders must remember that we get the behavior we reward, and prioritizing trust over performance almost always leads to high performance. Through this approach, we can foster a culture where people feel safe, valued, and motivated to deliver their best.

Can Expressing Emotions Boost Performance in High-Stakes Industries?

Over a five-year span from 2011 to 2016, Wells Fargo Bank employees opened over 3.5 million fraudulent bank accounts. Many customers were oblivious to this deception due to the accounts being routinely closed soon after being opened. 

While the bank fired 5,300 employees and claimed this went against their core principles and ethics, it is argued that this was not an isolated incident but a severe case of "ethical fading". This term refers to a culture that enables individuals to act unethically for their own gain while believing they haven't compromised their moral principles. 

This issue is particularly prevalent in organizations focusing excessively on short-term financial performance, thus pressuring employees to cut corners and make dubious decisions to meet set targets. Those who accomplish these targets through dubious means are often rewarded, reinforcing such behavior, while those who act ethically but miss targets are penalized. 

The Wells Fargo case provides a stark example of ethical fading, but it is not an isolated incident. The EpiPen scandal involving Mylan also demonstrates this phenomenon. The company exploited its market dominance and lack of generic competition to progressively raise the price of its life-saving EpiPen by 500% over six years. 

Ethical fading is not an event that occurs suddenly; it's more akin to an infection that festers over time. It is also incredibly hard to reverse, especially if the leaders trying to change the culture continue to maintain a finite mindset. 

Contrastingly, companies like Patagonia, an outdoor clothing company, demonstrate a commitment to ethical behavior. They are transparent about the environmental cost of their products and urge consumers to buy only what they need. This approach has earned them fierce loyalty from employees and customers alike, contributing to their financial success. 

Patagonia’s actions show that ethical decisions are not based on short-term benefits, but on the "right thing to do", and that doing the right thing can slowly strengthen a company. 

Ethical Fading: The Wells Fargo Scandal and the Power of Infinite Mindset in Business

In the world of work and life, we all have individuals who make us feel uncomfortable or envious because they excel in areas where we feel weak. Yet, when we shift our perspective and see these individuals as Worthy Rivals instead of competitors, we unlock a powerful tool for self-improvement and growth. 

One example is the story of two acclaimed authors who, after sharing a stage at a conference, realized that they admired each other's strengths and wished to improve in those areas themselves. This realization transformed their mindset from wanting to outdo each other to wanting to learn from each other. 

Ford's CEO, Alan Mulally used Toyota as a Worthy Rival to push Ford to improve their car quality and manufacturing process. Similarly, Apple used IBM as a Worthy Rival to clarify what they stood for and rally their people against a common "enemy". 

However, it's important to avoid Cause Blindness - the inability to recognize a rival's strengths or our weaknesses because we're too wrapped up in our own cause. This can lead to arrogance, stifled innovation, and repeated mistakes. Likewise, we should not confuse the loss of a Worthy Rival with winning the game.

Can Viewing Competitors as 'Worthy Rivals' Unlock Our Potential for Growth?

In 1952, Walt Disney, a visionary known for taking risks, made an Existential Flex - a significant shift in business strategy to advance a just cause. He liquidated his assets, borrowed against his life insurance policy, and even sold the rights to his name. This decision wasn't driven by madness, but a deep desire to create a more idyllic world, a vision that had its roots in his idyllic childhood in rural Marceline, Missouri. 

Disney, initially a young artist in animation, was always innovating. He was the first to make short films where real actors interacted with cartoon characters and the first to make a cartoon with synchronized sound. But his true innovation was in 1937 when he made Snow White, the first-ever feature-length animated film, which grossed over $8 million in its first year and led to the construction of a studio in Burbank, California.

However, as Walt Disney Productions grew, it became more stratified and faced numerous challenges such as wage gaps and union struggles. Disney felt defeated and decided to make an Existential Flex. He left to form a new company, WED, and used all the money he made to work on a new project - Disneyland, a place where people could escape the reality of their everyday lives.

Disney's story is a perfect example of Existential Flexibility - the capacity to disrupt a business model or strategic plan to advance a Just Cause. Disney's Just Cause was to offer others a chance to escape their harsh realities, and he was willing to risk everything to achieve it. 

Steve Jobs, co-founder of Apple, also made an Existential Flex in the early 1980s when he decided to invest in the graphical user interface technology, revolutionizing personal computing. Jobs was driven by a clear vision of a future that did not yet exist, and he constantly looked for ideas, opportunities, or technologies that could help advance that vision. 

On the other hand, Kodak, a once successful company, failed to make the necessary Existential Flex when it invented the digital camera. Instead of embracing the new technology, Kodak's executives chose to suppress it, fearing it would challenge their existing business model. In 2012, Kodak filed for bankruptcy, showing that failing to make an Existential Flex can lead to a company's demise.


Existential Flexibility: The Business Strategy that Built Disney and Apple, but Broke Kodak

CVS Caremark, a healthcare company, was committed to its cause: helping people on their path to better health. Even though the decision to stop selling tobacco products in their stores cost them $2 billion per year in revenue, they stood by their mission. 

This decision, although initially criticized by Wall Street, led to an unforeseen benefit - the overall cigarette sales dropped by 1% and the sale of nicotine patches increased by 4%, indicating that CVS's decision encouraged smokers to quit. Moreover, companies that previously refused to do business with CVS began partnering with them, opening new revenue streams.

Meanwhile, American Airlines' CEO, Doug Parker, transformed the organization by prioritizing people over profit. This approach was met with disapproval from Wall Street, but Parker stayed committed to his mission. His decision to give mid-contract raises to flight attendants and pilots resulted in a short-term loss but ultimately led to long-term success and trust-building with employees.

Both CVS and American Airlines demonstrate what it means to adopt an 'infinite mindset'. They chose to make decisions that were consistent with their larger mission, thereby positively impacting their customers, employees, and overall business in the long run.

However, not all businesses choose this approach. Walgreens and Rite Aid, despite their purpose statements of promoting health, continue to sell cigarettes in their stores. This highlights the importance of aligning actions with stated purpose or cause, and the courage it takes to make decisions that may not initially be popular but ultimately serve the larger mission. 

In the end, having an 'infinite mindset' takes courage, commitment, and a willingness to challenge accepted norms. It's about prioritizing long-term success over short-term gains, staying true to one's mission, and most importantly, placing people and purpose before profit.

Can Adopting an 'Infinite Mindset' like CVS and American Airlines Transform Your Business?

The two contrasting types of games we engage in are finite and infinite. Finite games such as sports, have predetermined rules, known players, and a clear conclusion, whereas infinite games like life, business, or marriage are indefinite with no clear end, strict rules or known players. The ultimate goal in an infinite game is to continue playing. 

In the business world, it's about evolving, surviving, and perpetuating rather than achieving a finite "win". Many leaders unfortunately approach business with a finite mindset, focusing on competition and short-term wins, which can ultimately lead to a decline in trust, cooperation, and innovation. 

On the other hand, leaders who embrace an infinite mindset foster trust, inspire innovation, and ensure the longevity of their organization. The key to success in the infinite game of business is adopting an infinite mindset that includes advancing a just cause, building trusting teams, studying worthy rivals, preparing for existential flexibility, and demonstrating the courage to lead.

Transitioning from a finite to an infinite mindset is crucial for businesses to be resilient and sustainable in today's rapidly changing world. There's a need to prioritize people over profits and work towards a just cause that inspires and motivates stakeholders. 

In addition, it's important for leaders to create a culture of trust within teams, allowing for open expression of feelings and vulnerabilities. This fosters psychological safety that is vital for building high-performing, resilient teams. 

Lastly, businesses need to guard against ethical fading, a common issue where individuals act unethically for personal gain while believing they haven't compromised their moral principles. Adopting an infinite mindset fosters ethical behavior and guards against ethical fading, creating a culture where acting ethically is the norm.

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