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To ask, “What’s best for me” is finite thinking. To ask, “What’s best for us” is infinite thinking.
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Simon Sinek (The Infinite Game)
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Culture = Values + Behavior
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Simon Sinek (The Infinite Game)
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When leaders are willing to prioritize trust over performance, performance almost always follows.
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Simon Sinek (The Infinite Game)
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leaders are not responsible for the results, leaders are responsible for the people who are responsible for the results. And the best way to drive performance in an organization is to create an environment in which information can flow freely, mistakes can be highlighted and help can be offered and received.
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Simon Sinek (The Infinite Game)
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The best way to drive performance in an organization is to create an environment in which information can flow freely, mistakes can be highlighted and help can be offered and received.
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Simon Sinek (The Infinite Game)
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Infinite-minded leaders understand that “best” is not a permanent state. Instead, they strive to be “better.” “Better” suggests a journey of constant improvement and makes us feel like we are being invited to contribute our talents and energies to make progress in that journey.
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Simon Sinek (The Infinite Game)
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There is a difference between a group of people who work together and a group of people who trust each other.
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Simon Sinek (The Infinite Game)
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It is important to celebrate our victories, but we cannot linger on them. For the Infinite Game is still going and there is still much work to be done.
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Simon Sinek (The Infinite Game)
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An infinite mindset embraces abundance whereas a finite mindset operates with a scarcity mentality. In the Infinite Game we accept that “being the best” is a fool’s errand and that multiple players can do well at the same time.
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Simon Sinek (The Infinite Game)
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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.
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Simon Sinek (The Infinite Game)
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In weak cultures, people find safety in the rules. This is why we get bureaucrats. They believe a strict adherence to the rules provides them with job security. And in the process, they do damage to the trust inside and outside the organization. In strong cultures, people find safety in relationships. Strong relationships are the foundation of high-performing teams. And all high-performing teams start with trust.
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Simon Sinek (The Infinite Game)
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Strong relationships are the foundation of high-performing teams. And all high-performing teams start with trust.
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Simon Sinek (The Infinite Game)
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How do I create an environment in which my people can work to their natural best?
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Simon Sinek (The Infinite Game)
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Better” suggests a journey of constant improvement and makes us feel like we are being invited to contribute our talents and energies to make progress in that journey. “Better,” in the Infinite Game, is better than “best.
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Simon Sinek (The Infinite Game)
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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,
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Simon Sinek (The Infinite Game)
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When leaders are willing to prioritize trust over performance, performance almost always follows. However, when leaders have laser-focus on performance above all else, the culture inevitably suffers.
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Simon Sinek (The Infinite Game)
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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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Simon Sinek (The Infinite Game)
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One of the primary jobs of any leader is to make new leaders. To help grow the kind of leaders who know how to build organizations equipped for the Infinite Game.
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Simon Sinek (The Infinite Game)
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Cause Blindness is when we become so wrapped up in our Cause or so wrapped up in the “wrongness” of the other player’s Cause, that we fail to recognize their strengths or our weaknesses.
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Simon Sinek (The Infinite Game)
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Traditional competition forces us to take on an attitude of winning. A worthy rival inspires us to take an attitude of improvement. The former focuses our attention on the outcome, the latter focuses our attention on process.
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Simon Sinek (The Infinite Game)
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Cause Blindness blunts humility and exaggerates arrogance, which in turn stunts innovation and reduces the flexibility we need to play the long game.
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Simon Sinek (The Infinite Game)
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For the feeling of trust to develop, we have to feel safe expressing ourselves first. We have to feel safe being vulnerable. That’s right, vulnerable.
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Simon Sinek (The Infinite Game)
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Traditional competition forces us to take on an attitude of winning. A Worthy Rival inspires us to take on an attitude of improvement. The former focuses our attention on the outcome, the latter focuses our attention on process. That simple shift in perspective immediately changes how we see our own businesses. It is the focus on process and constant improvement that helps reveal new skills and boosts resilience. An excessive focus on beating our competition not only gets exhausting over time, it can actually stifle innovation.
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Simon Sinek (The Infinite Game)
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leaders are not responsible for the results, leaders are responsible for the people who are responsible for the results.
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Simon Sinek (The Infinite Game)
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In any game, there are always two currencies required to play - will and resources.
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Simon Sinek (The Infinite Game)
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People will trust their leaders when their leaders do the things that make them feel psychologically safe.
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Simon Sinek (The Infinite Game)
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It’s a strange quirk of human nature. The order in which a person presents information more often than not reveals their actual priorities and the focus of their strategies.
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Simon Sinek (The Infinite Game)
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Think of a Just Cause like an iceberg. All we ever see is the tip of that iceberg, the things we have already accomplished. In an organization, it is often the founders and early contributors who have the clearest vision of the unknown future, of what, to everyone else, remains unseen.
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Simon Sinek (The Infinite Game)
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Where finite-minded organizations view people as a cost to be managed, infinite-minded organizations prefer to see employees as human beings whose value cannot be calculated as if they were a piece of machinery. Investing in human beings goes beyond paying them well and offering them a great place to work. It also means treating them like human beings. Understanding that they, like all people, have ambitions and fears, ideas and opinions and ultimately want to feel like they matter.
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Simon Sinek (The Infinite Game)
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In an organization that is only driven by the finite, we may like our jobs some days, but we will likely never love our jobs. If we work for an organization with a Just Cause, we may like our jobs some days, but we will always love our jobs. As with our kids, we may like them some days and not others, but we love them every day.
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Simon Sinek (The Infinite Game)
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the definition of the responsibility of business must: 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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Simon Sinek (The Infinite Game)
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And no matter how much money we make, no matter how much power we accumulate, no matter how many promotions we’re given, none of us will ever be declared the winner of life.
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Simon Sinek (The Infinite Game)
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Trust must be continuously and actively cultivated.
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Simon Sinek (The Infinite Game)
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And like all infinite games, in the game of life, the goal is not to win, it is to perpetuate the game.
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Simon Sinek (The Infinite Game)
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If we believe trust, cooperation and innovation matter to the long-term prospects of our organizations, then we have only one choice—to learn how to play with an infinite mindset.
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Simon Sinek (The Infinite Game)
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What got us here won’t get us there, and knowing who our Worthy Rivals are is the best way to help us improve and adapt before it’s too late.
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Simon Sinek (The Infinite Game)
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the best leaders and the best companies prioritize people before numbers.
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Simon Sinek (The Infinite Game)
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Being the best simply cannot be a Just Cause, because even if we are the best (based on the metrics and time frames of our own choosing), the position is only temporary. The game doesn’t end once we get there; it keeps going. And because the game keeps going, we often find ourselves playing defense to maintain our cherished ranking. Though saying “we are the best” may be great fodder for a rah-rah speech to rally a team, it makes for a weak foundation upon which to build an entire company. Infinite-minded leaders understand that “best” is not a permanent state. Instead, they strive to be “better.” “Better” suggests
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Simon Sinek (The Infinite Game)
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Our goal, as leaders, is to ensure that our people have the skills—technical skills, human skills or leadership skills—so that they are equipped to work to their natural best and be a valuable asset to the team.
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Simon Sinek (The Infinite Game)
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Even well-intended finite-minded leaders often have the perspective of “make money to do good.” An infinite perspective on service, however, looks somewhat different: “Do good making money” (the order of the information matters).
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Simon Sinek (The Infinite Game)
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Unlike resources, which are ultimately limited, we can generate an endless supply of will. For this reason, organizations that choose to operate with a bias for will are ultimately more resilient than those who prioritize resources.
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Simon Sinek (The Infinite Game)
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Integrity does not just mean “doing the right thing.” Integrity means acting before the public outcry or scandal. When leaders know about something that is unethical and only act after the outcry, that’s not integrity. That’s damage control.
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Simon Sinek (The Infinite Game)
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A written cause works like a compass. And with a compass in hand, each succession of leaders, their gaze looking beyond the horizon, can more easily navigate the technologies, politics and cultural norms of the day without the founder present.
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Simon Sinek (The Infinite Game)
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The most loyal employees feel their leaders genuinely care about them… because their leaders genuinely 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.
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Simon Sinek (The Infinite Game)
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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.
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Simon Sinek (The Infinite Game)
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Ethical fading is a condition in a culture that allows people to act in unethical ways in order to advance their own interests, often at the expense of others, while falsely believing that they have not compromised their own moral principles. Ethical fading often starts with small, seemingly innocuous transgressions that, when left unchecked, continue to grow and compound.
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Simon Sinek (The Infinite Game)
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Words matter. They give direction and meaning to things. Pick the wrong words, intentions change and things won’t necessarily go as hoped or expected. Martin Luther King Jr. gave the “I have a dream” speech, for example. He didn’t give the “I have a plan” speech. There is no doubt he needed a plan. We know he had meetings to discuss the plan. But as the “CEO” of the civil rights movement, Dr. King was not responsible for making the plan. He was responsible for the dream and making sure those responsible for the plans were working to advance the dream.
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Simon Sinek (The Infinite Game)
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When we work on a Trusting Team we feel safe to express vulnerability. We feel safe to raise our hands and admit we made a mistake, be honest about shortfalls in performance, take responsibility for our behavior and ask for help. Asking for help is an example of an act that reveals vulnerability. However, when on a Trusting Team, we do so with the confidence that our boss or our colleagues will be there to support us. “Trust is the stacking and layering of small moments and reciprocal vulnerability over time,” says Brené Brown, research professor at the University of Houston in her book Dare to Lead. “Trust and vulnerability grow together, and to betray one is to destroy both.
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Simon Sinek (The Infinite Game)
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Being the best simply cannot be a Just Cause, because even if we are the best (based on the metrics and time frames of our own choosing), the position is only temporary. The game doesn’t end once we get there; it keeps going. And because the game keeps going, we often find ourselves playing defense to maintain our cherished ranking. Though saying “we are the best” may be great fodder for a rah-rah speech to rally a team, it makes for a weak foundation upon which to build an entire company. Infinite-minded leaders understand that “best” is not a permanent state. Instead, they strive to be “better.” “Better” suggests a journey of constant improvement and makes us feel like we are being invited to contribute our talents and energies to make progress in that journey.
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Simon Sinek (The Infinite Game)
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Finite-minded players do not like surprises and fear any kind of disruption. Things they cannot predict or cannot control could upset their plans and increase their chances of losing. 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 the applications of new technology.
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Simon Sinek (The Infinite Game)
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be highlighted and help can be offered and received. In short, an environment in which people feel safe among their own. This is the responsibility of a leader. This is what Rick Fox did. He built a high-performing team by creating an environment in which his crew
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Simon Sinek (The Infinite Game)
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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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Simon Sinek (The Infinite Game)
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It’s like eating too many desserts in the name of “enjoying life” only to make oneself diabetic in the process.
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Simon Sinek (The Infinite Game)
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the true value of an organization cannot be measured by the success it has achieved based on a set of arbitrary metrics over arbitrary time frames. 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.
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Simon Sinek (The Infinite Game)
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Leaders can rally people against something quite easily. They can whip them into a frenzy, even. For our emotions can run hot when we are angry or afraid. Being for something, in contrast, is about feeling inspired. Being for ignites the human spirit and fills us with hope and optimism. Being against is about vilifying, demonizing or rejecting. Being for is about inviting all to join in common cause. Being against focuses our attention on the things we can see in order to elicit reactions. Being for focuses our attention on the unbuilt future in order to spark our imaginations.
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Simon Sinek (The Infinite Game)
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Sometimes it is important to strategically slow the rate of growth to help ensure the security of the long-term or simply to make sure the organization is properly equipped to withstand the additional pressures that come with high-speed growth.
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Simon Sinek (The Infinite Game)
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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. We call it “vision” because it must be something we can “see.” For a Just Cause to serve as an effective invitation, the words must paint a specific and tangible picture of the kind of impact we will make or what exactly a better world would look like. Only when we can imagine in our mind’s eye the exact version of the world an organization or leader hopes to advance toward will we know to which organization or to which leader we want to commit our energies and ourselves. A clear Cause is what ignites our passions.
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Simon Sinek (The Infinite Game)
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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.
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Simon Sinek (The Infinite Game)
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There are three factors we must always consider when deciding how we want to lead: We don’t get to choose whether a particular game is finite or infinite. We do get to choose whether or not we want join the game. Should we choose to join the game, we can choose whether we want to play with a finite or an infinite mindset.
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Simon Sinek (The Infinite Game)
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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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Simon Sinek (The Infinite Game)
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No matter how successful we are in life, when we die, none of us will be declared the winner of life. And there is certainly no such thing as winning business. All these things are journeys, not events.
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Simon Sinek (The Infinite Game)
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leaders are not responsible for the results, leaders are responsible for the people who are responsible for the results. And the best way to drive performance in an organization is to create an environment in which information can flow freely, mistakes can be highlighted and help can be offered and received. In short, an environment in which people feel safe among their own. This is the responsibility of a leader.
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Simon Sinek (The Infinite Game)
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From mid-2011 to about mid-2016, employees at Wells Fargo Bank opened over three and a half million fake bank accounts. As The New York Times reported in 2016, “Some customers noticed the deception when they were charged unexpected fees, received credit or debit cards in the mail that they did not request, or started hearing from debt collectors about accounts they did not recognize. But most of the sham accounts went unnoticed, as employees would routinely close them shortly after opening them.” Ultimately, 5,300 Wells Fargo employees were fired as a result of their involvement in these deceptive practices. Practices that then CEO John Stumpf told Congress “go against everything regarding our core principles, our ethics and our culture.
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Simon Sinek (The Infinite Game)
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I know many people who sit at the highest levels of organizations who are not leaders. They may hold rank, and we may do as they tell us because they have authority over us, but that does not mean we trust them or that we would follow them. There are others who may hold no formal rank or authority, but they have taken the risk to care for their people. They are able to create a space in which we can be ourselves and feel safe sharing what’s on our mind. We trust those people, we would follow them anywhere and we willingly go the extra mile for them, not because we have to, but because we want to.
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Simon Sinek (The Infinite Game)
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infinite-minded leaders don’t ask their people to fixate on finite goals; they ask their people to help them figure out a way to advance toward a more infinite vision of the future that benefits everyone.
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Simon Sinek (The Infinite Game)
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A company built for resilience is a company that is structured to last forever. This is different from a company built for stability. Stability, by its very definition, is about remaining the same. A stable organization can theoretically weather a storm, then come out of it the same as it was before. In more practical terms, when a company is described as stable, it is usually to draw a contrast to another company that is higher risk and higher performing.
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Simon Sinek (The Infinite Game)
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To empower every person and every organization on the planet to achieve more.
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Simon Sinek (The Infinite Game)
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People start to realize that nothing and no one is safe. In response, some instinctually behave as if they were switched to self-preservation mode. They may hoard information, hide mistakes and operate in a more cautious, risk-averse way. To protect themselves, they trust no one. Others double down on an only-the-fittest-survive mentality. Their tactics can become overly aggressive. Their egos become unchecked. They learn to manage up the hierarchy to garner favor with senior leadership while, in some cases, sabotaging their own colleagues. To protect themselves, they trust no one. Regardless of whether they are in self-preservation or self-promotion mode, the sum of all of these behaviors contributes to a general decline in cooperation across the company, which also leads to stagnation of any truly new or innovative ideas.
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Simon Sinek (The Infinite Game)
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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. Like Vavilov’s scientists, the sacrifice people are willing to make may be their lives. But it needn’t be. It can be the choice to turn down a better-paying job in order to keep working for an organization that is working to advance a Just Cause in which we believe. It may mean working late hours or taking frequent business trips. Though we may not like the sacrifices we make, it is because of the Just Cause that they feel worth it. “Winning” provides a temporary thrill of victory; an intense, but fleeting, boost to our self-confidence. None of us is able to hold on to the incredible feeling of accomplishment for that target we hit, promotion we earned or tournament we won a year ago. Those feelings have passed. To get that feeling again, we need to try to win again. However,
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Simon Sinek (The Infinite Game)
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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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Simon Sinek (The Infinite Game)
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In any game, there are always two currencies required to play—will and resources. Resources are tangible and easily measured. When we talk about resources, we’re usually talking about money.
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Simon Sinek (The Infinite Game)
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Resources generally come from outside sources, like customers or investors, and represent the sum of all the financial metrics that contribute to the health of the organization.
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Simon Sinek (The Infinite Game)
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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.
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Simon Sinek (The Infinite Game)
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Martin Luther King Jr. gave the “I have a dream” speech, for example. He didn’t give the “I have a plan” speech. There is no doubt he needed a plan. We know he had meetings to discuss the plan.
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Simon Sinek (The Infinite Game)
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General Lori Robinson, who, when she retired from the Air Force in 2018, was the highest-ranking female officer in the history of the United States military, explains that the responsibility of the most senior person in an organization is to look beyond the organization.
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Simon Sinek (The Infinite Game)
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Technology companies, like Facebook, Twitter and Google, certainly look like they are more comfortable asking for forgiveness as they run afoul of ethical customs, as opposed to leading with a fundamental view of how they safeguard one of their most important assets: our private data. Based on Friedman’s standards, they are doing exactly what they should do.
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Simon Sinek (The Infinite Game)
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Unlike resources, which are ultimately limited, we can generate an endless supply of will.
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Simon Sinek (The Infinite Game)
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Smith did not consider a time in which the selfishness of outside investors and an analyst community would put that system completely out of balance. He did not anticipate that an entire group of self-interested outsiders would exert massive pressure on the baker to cut costs and use cheaper ingredients in order to maximize the investors’ gains.
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Simon Sinek (The Infinite Game)
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we need simply look at how capitalism changed after the idea of shareholder supremacy took over—which only happened in the final decades of the twentieth century. Prior to the introduction of the shareholder primacy theory, the way business operated in the United States looked quite different. “By the middle of the 20th century,” said Cornell corporate law professor Lynn Stout in the documentary series Explained, “the American public corporation was proving itself one of the most effective and powerful and beneficial organizations in the world.” Companies of that era allowed for average Americans, not just the wealthiest, to share in the investment opportunities and enjoy good returns. Most important, “executives and directors viewed themselves as stewards or trustees of great public institutions that were supposed to serve not just the shareholders, but also bondholders, suppliers, employees and the community.” It was only after Friedman’s 1970 article that executives and directors started to see themselves as responsible to their “owners,” the shareholders, and not stewards of something bigger. The more that idea took hold in the 1980s and ’90s, the more incentive structures inside public companies and banks themselves became excessively focused on shorter-and-shorter-term gains to the benefit of fewer and fewer people. It’s during this time that the annual round of mass layoffs to meet arbitrary projections became an accepted and common strategy for the first time. Prior to the 1980s, such a practice simply didn’t exist. It was common for people to work a practical lifetime for one company. The company took care of them and they took care of the company. Trust, pride and loyalty flowed in both directions. And at the end of their careers these long-time employees would get their proverbial gold watch. I don’t think getting a gold watch is even a thing anymore. These days, we either leave or are asked to leave long before we would ever earn one.
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Simon Sinek (The Infinite Game)
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The average life of a company in the 1950s, if you recall, was just over 60 years. Today it is less than 20 years. According to a 2017 study by Credit Suisse, disruptive technology is the reason for the steep decline in company life span.
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Simon Sinek (The Infinite Game)
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It is not technology that explains failure; it is less about technology, per se, and more about the leaders’ failure to envision the future of their business as the world changes around them. It is the result of shortsightedness. And shortsightedness is an inherent condition of leaders who play with a finite mindset. In fact, the rise of this kind of shortsightedness over the past 50 years can be traced back to the philosophies of a single person.
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Simon Sinek (The Infinite Game)
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There is no such thing as constant growth, nor is there any rule that says high-speed growth is necessarily a great strategy when building a company to last. Where a finite-minded leader sees fast growth as the goal, an infinite-minded leader views growth as an adjustable variable. Sometimes it is important to strategically slow the rate of growth to help ensure the security of the long-term or simply to make sure the organization is properly equipped to withstand the additional pressures that come with high-speed growth. A fast-growing retail operation, for example, may choose to slow the store expansion schedule in order to put more resources into training and development of staff and store managers.
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Simon Sinek (The Infinite Game)
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Whereas employees contribute time and energy, investors contribute capital (money). Both forms of contribution are valuable and necessary to help a company succeed, so both parties should be fairly rewarded for their contributions. Logically, for a company to get bigger, stronger or better at what they do, executives must ensure that the benefit provided by investors’ money or employees’ hard work should, as Adam Smith pointed out, go first to those who buy from the company. When that happens, it is easier for the company to sell more, charge more, build a more loyal customer base and make more money for the company and its investors alike.
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Simon Sinek (The Infinite Game)
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In our modern day and age, it is the employee who bears the most cost for the money companies and their leaders make. They are the ones who must worry every time the company misses its arbitrary projections whether they will be sent home without the means to provide for themselves or their families. It is the employee who comes to work and feels that the company and its leaders do not care about them as human beings (note: offering free food and fancy offices is not the thing that makes people feel cared for). People want to be treated fairly and share in the wealth they helped produce in payment for the cost they bear to grow their companies. I am not demanding it—they are! The data shows that the current system benefits the top 1 percent of the population disproportionately more than anyone else.
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Simon Sinek (The Infinite Game)
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The order in which a person presents information more often than not reveals their actual priorities and the focus of their strategies.
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Simon Sinek (The Infinite Game)
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Under Duke’s leadership, Walmart’s stock price did increase . . . for a while. However, focusing on numbers before people comes at a cost. The once beloved brand also found itself embroiled in multiple scandals over the treatment of their people and their customers.
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Simon Sinek (The Infinite Game)
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In a watershed article from 1970, Milton Friedman, the Nobel Prize–winning economist, who is considered one of the great theorists of today’s form of capitalism, laid out the foundation for the theory of shareholder primacy that is at the heart of so much finite-minded business practice today. “In a free-enterprise, private-property system,” he wrote, “a corporate executive is an employee of the owners of the business. He has direct responsibility to his employers. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom.” 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 the way that the game of business was played and is the only way it can be played. Except it wasn’t . . . and it isn’t.
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Simon Sinek (The Infinite Game)
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Adam Smith. 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 (ironically, a point Smith believed so “self-evident,” he felt it was absurd to try to prove it, and yet here I am writing a whole book about it).
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Simon Sinek (The Infinite Game)
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The Economic Policy Institute reported that in 1978, the average CEO made approximately 30 times the average worker’s salary. By 2016, the average had increased over 800 percent to 271 times the average worker’s pay. Where the average CEO has seen a nearly 950 percent increase in their earnings, the American worker, meanwhile, has seen just over 11 percent in theirs. According to the same report, average CEO pay has increased at a rate 70 percent faster than the stock market!
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Simon Sinek (The Infinite Game)
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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.” When we tie pay packages directly to stock price, it promotes practices like closing factories, keeping wages down, implementing extreme cost cutting and conducting annual rounds of layoffs—tactics that might boost the stock price in the near term, but often do damage to an organization’s ability to survive and thrive in the Infinite Game. Buybacks are another often legitimate practice that has been abused by public company executives seeking to prop up their share price.
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Simon Sinek (The Infinite Game)
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To offer growth as a cause, growth for its own sake, is like eating just to get fat. It pushes executives to consider strategies that demonstrate growth with little to no consideration of any sense of purpose for that growth. Just like it would affect a human being, it should come as no surprise that the organizations that eat to get fat will eventually suffer from health problems. Growth as a cause often results in an unhealthy culture, one in which short-termism and selfishness reign supreme, while trust and cooperation suffer. Growth is a result, not a Cause. It’s an output, not a reason for being.
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Simon Sinek (The Infinite Game)
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What happened at Walmart happens all too often in public companies, even the Cause-driven ones. Under pressure from Wall Street, we too often put finite-minded executives in the highest leadership position when what we actually need is a visionary, infinite-minded leader.
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Simon Sinek (The Infinite Game)
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the tying of executive pay packages to stock performance rather than company performance (which amazingly don’t always align),
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Simon Sinek (The Infinite Game)
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Time is always the great revealer of truth.
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Simon Sinek (The Infinite Game)
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This is exactly what Alan Mulally walked into when he took over as the new CEO at Ford in 2006. Ford was in serious trouble, and Mulally was brought in with the hope that he could save the company. Much as Chief Cauley had done at the CRPD, Mulally made it his first order of business at Ford to find out as much as he could about the current state of things from the people who worked there. The task, however, proved more difficult than he expected. To keep a pulse on the health of the organization, Mulally introduced weekly business plan reviews (BPRs). All his senior executives were to attend these meetings and present the status of their work against the company’s strategic plan, using simple color coding—green, yellow and red. Mulally knew that the company was having serious problems, so he was surprised to see that week after week every executive presented their projects as all green. Finally, he threw up his hands in frustration. “We are going to lose billions of dollars this year,” he said. “Is there anything that’s not going well here?” Nobody answered. There was a good reason for the silence. The executives were scared. Prior to Mulally, the former CEO would regularly berate, humiliate or fire people who told him things he didn’t want to hear. And, because we get the behavior we reward, executives were now conditioned to hide problem areas or missed financial targets to protect themselves from the CEO. It didn’t matter that Mulally said he wanted honesty and accountability; until the executives felt safe, he wasn’t going to get it. (For all the cynics who say there is no place for feelings at work, here was a roomful of the most senior people of a major corporation who didn’t want to tell the truth to the CEO because of how they felt.) But Mulally persisted. In every subsequent meeting he repeated the same question until, eventually, one person, Mark Fields, head of operations in the Americas, changed one slide in his presentation to red. A decision he believed would cost him his job. But he didn’t lose his job. Nor was he publicly shamed. Instead, Mulally clapped at the sight and said, “Mark, that is great visibility! Who can help Mark with this?” At the next meeting, Mark was still the only executive with a red slide in his presentation. In fact, the other executives were surprised to see that Fields still had his job. Week after week, Mulally would repeat his question, We are still losing tons of money, is anything not going well? Slowly executives started to show yellow and red in their presentations too. Eventually, it got to the point where they would openly discuss all the issues they were facing. In the process, Mulally had learned some tricks to help build trust on the team. To help them feel safe from humiliation, for example, he depersonalized the problems his executives faced. “You have a problem,” he would tell them. “You are not the problem.
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Simon Sinek (The Infinite Game)
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It’s the difference between issuing lots of tickets at an intersection that has a lot of accidents and figuring out how to reduce the number of accidents in the first place.
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Simon Sinek (The Infinite Game)
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If leaders, in any profession, place an excess of stress on people to make the numbers, and offer lopsided incentive structures, we risk creating an environment in which near-term performance and resources are prioritized while long-term performance, trust, psychological safety and the will of the people decline.
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Simon Sinek (The Infinite Game)
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A Just Cause should direct the business model, not the other way around.
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Simon Sinek (The Infinite Game)
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When a statement of vision or mission is grounded in the product, it can have adverse effects on the corporate culture also. For companies that place their product above all else, which is fairly common among technology or engineering companies, it leaves people who are not engineers or product designers feeling like (and sometimes actually treated like) second-class citizens in their own companies.
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Simon Sinek (The Infinite Game)
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If the question asked is, “What is your company’s Cause? Why does your company exist?” and the answer offered is “growth,” that’s a lot like your neighboring responding “vacation” to the question “Where are you going?” The leaders of these growth-oriented companies can rattle off their strategies and targets for growth, but that’s like explaining which highway and how many miles you plan to travel when heading on vacation; it doesn’t paint a picture of why you set off in the first place or where you hope to go. It doesn’t offer a larger context or purpose for that growth.
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Simon Sinek (The Infinite Game)