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The value of playing the Infinite Game

Several years ago, Microsoft presented at an education summit. Microsoft presenters spoke about products they had produced to support educators, but spent a sizable amount of time discussing how they were going to beat Apple, their industry rival. Several weeks later Apple conducted an event with a similar theme. Apple presenters spent their time focusing on how their products would help teachers teach and students learn, with no discussion about rivals. Which approach would lead to success?

Professor James Carese created the idea of different approaches to leadership and corporate culture in terms of the Finite Game and the Infinite Game. Those with a Finite Game mindset play the game to win. Those with a Finite mindset play the game for themselves, focusing on short term individual success. A company that is Finite-focused is looking for innovation to boost their bottom line, with little concern of the benefit to the organization, its employees, customers and community.

Employers focused on the Infinite Game possess a culture with employees who believe it is important to leave the organization better than they found it. They measure an organization’s value by its employees’ level of desire to help the company achieve success. Author Jim Collins coined the phrase “built to last”, which is the focus of the Infinite Game.

Infinite minded players expect surprises and treat them as opportunities, not obstacles. Finite minded players fear surprises or any kind of disruption. Finite minded players make products they can sell to people, whereas Infinite minded players make products that people want. Companies playing the Infinite Game consider the impact of its decisions on its community, region and beyond. Companies playing the Finite Game are only concerned with achieving their personal goals, ignoring the impact on others.

Victorinox is a Swiss company that produced the Swiss Army knife. When the tragedy of September 11 occurred it changed their industry. Versatile pocket knives like theirs were now banned from hand luggage during travel. Finite thinkers would have put the company in a defense posture to protect their bottom line, including layoffs and cost cutting. Victorinox decided to innovate, investing in product development which inspired their employees to expand their brand into new markets. Victorinox had saved funds in the good times to support such a challenge. Victorinox went on to double their revenue since September 11. You now see the Swiss Army brand on travel gear, fragrances, and watches. Their Infinite Game approach has led to long term growth in the face of ever changing obstacles.

Microsoft and Apple can share a story of products. In 2001 Apple first launched the iPod, a portable media player developed to enhance the user experience, developed by an Infinite Game focused team. Microsoft answered with the launch of the Zune, launched by a Finite Game minded team only focused on profit. The Zune rose to a 1% market share by 2010 before being discontinued in 2011. During that period of time the iPod had a 70% market share

Successful leaders make decisions that impact today and tomorrow. They build a culture to endure and thrive, benefiting their employees, customers, and community. Great leaders play the Infinite Game, leaving their organizations better than they found them. What would the world be like today if we all adopted the Infinite Game? I for one would be interested in finding out!

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