How to Play the Infinite Game of Business Well?

Running a business can be an infinite game, with no final score to determine who wins or loses. The ultimate goal of a company is to stay in this game for as long as possible. Too many people today are accustomed to using stock prices to judge a company's performance, but they overlook one crucial point: if the business is not sustainable, a temporary stock price can vanish overnight. To create a sustainable enterprise, we need to refocus on how to innovate and create products that people need, rather than just generating more wealth for shareholders. Simon Sinek, in The Infinite Game, proposes that companies should establish a just mission, build teams based on mutual trust, embrace change, and learn from worthy competitors to gain an advantage in the game.

Establish Long-Term Goals

Adam Smith advocated in The Wealth of Nations that businesses should prioritize consumer interests. However, by 1970, Milton Friedman argued that a company's primary responsibility is to generate profits for its shareholders. This marked a shift in business goals from being consumer-centric to focusing on short-term profits and growth.

A lofty goal should be inspiring and motivate people to strive towards it. If businesses want to operate for the long term, their goals should revolve around consumer needs rather than merely pursuing profit. GPS device manufacturer Garmin once claimed its goal was to be the leader in every market it participated in, without mentioning customers at all. It’s no surprise that its current market value is only one-third of what it was in 2007.

Build Teams Based on Mutual Trust

A culture of distrust within a company can be fatal to its operations. If employees do not trust the company, their performance will decline, and they may resort to unethical business practices. The root cause of this often lies in employees not knowing whether they should be honest when faced with uncertain situations.

This was precisely the case at Ford Motor Company before 2006. The then-CEO had a habit of reprimanding or even firing those who brought him bad news. Naturally, employees would only share good news in meetings. It wasn’t until Alan Mulally took over and encouraged everyone to report bad news that the culture of distrust began to change.

Embrace Change and Learn from Worthy Competitors

Whether in sports or business, a good competitor can push you to improve your skills and learn new ones. Learning from competitors can help a business go further. When Alan Mulally first became CEO of Ford, the company had lost 25% of its market share over the past fifteen years. However, Mulally did not rush to launch promotions or cut costs; instead, he began studying competitors, including Toyota and Lexus, to understand why consumers preferred those vehicles.

Similarly, when Steve Jobs discovered the GUI technology being developed by Xerox, he immediately changed Apple’s original plans and decided to implement this technology in the new computers. Today, the widespread use of GUI validates Jobs' successful decision. If Jobs had not embraced new technology with the right mindset and execution, these transformations would not have occurred.