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47 pages 1 hour read

Simon Sinek

The Infinite Game

Simon SinekNonfiction | Book | Adult | Published in 2018

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Part 4Chapter Summaries & Analyses

Part 4, Chapter 8 Summary: “Ethical Fading”

Sinek provides an example of “ethical fading” by citing a five-year period—2006-2011—during which thousands of employees at Wells Fargo opened fake bank accounts to push customers to pay more fees and service charges. This ethical catastrophe resulted in the firing of 5,300 employees. Sinek believes ethical fading begins as small lapses in judgment that, when unsupervised, grow into larger systemic problems. Finite-minded organizations are particularly susceptible to ethical fading. Sometimes, high-performing employees who commit ethical lapses are rewarded because they generate revenue for their company. This practice rewards harmful behavior, reinforcing it as acceptable.

Sinek describes a Princeton University experiment devised by two psychology professors, who based their study on the biblical story of The Good Samaritan—an experiment that illustrates ethical fading. An actor was placed on campus in an alleyway, pretending he had been hurt in some way. The student subjects of the study were divided into three groups: Each group faced high, moderate, or low pressure to rush across campus to an invented event. Two thirds of the students who faced low pressure stopped to help the actor, less than half of the students who faced moderate pressure helped, and only a 10th of students who faced high pressure helped. Sinek relates this study to the high-pressure environment of Wells Fargo in 2006-2011. Employees were pushed to sell over 10 different products a day, and supervisors demeaned and threatened them if they didn’t make their quotas. Moreover, supervisors often fired employees who “lagged.” Internal reviews revealed Wells Fargo was creating a toxic environment a decade before its scandal. Yet human resource managers and representatives were advised against fixing the problem. Executives knew about the toxic environment, and some encouraged employees to continue toxic practices. In 2018, Wells Fargo was forced to pay over $185 million, only 0.2% of their its revenue, as part of a settlement. No executives faced criminal charges, with CEO John Stumpf gaining $134 million as pension for resigning.

Another story of ethical fading is how Mylan, a pharmaceutical company, bought the rights to the allergy medication EpiPen. Knowing EpiPen was the only auto-injector for allergy medication on the market, Mylan increased its markup from 22% to 32% in 2009. In 2016, the company raised it again by 500%. Like Wells Fargo, Mylan suffered from ethical fading. These two companies rationalized their behavior through self-deception, with their executive statements distancing themselves from the ramifications of their actions. Other forms of self-deceptive rhetoric include blaming the “system” and fulfilling “legal responsibility.” Sinek frames Facebook, Instagram, and Snapchat as knowingly creating addictive social media platforms because there are no laws against this concept. Organizations that suffer ethical fading play the infinite game with finite mindsets, which causes them to sacrifice ethical practices for short-term profits.

Sinek introduces another term, “lazy leadership,” a method of leadership that tries to solve specific problems with company-wide implementation. He recalls working for an advertising agency when they decided to implement time sheets. He never filled out time sheets, so he filled them out according to his best guess. When Sinek turned in the timesheets, his supervisor approved them without a second thought. While this example is relatively harmless, lazy leadership can lead to ethical fading when “leaders use process to replace judgement” (147). Excessive procedures produce dishonesty and cheating. For example, submitting false reports because of a failure to meet unreasonable requirements breeds ethical fading. Employees in organizations with lazy leadership create creative ways to complete requirements while thinking they can maintain moral standards. Again, Sinek argues that the best cure for ethical fading is an infinite mindset. When leaders advance a just cause and cultivate a trusting team, acting ethically becomes the norm for employees. An environment built on accountability, vision, and trust creates a culture where moral standards rise organically. Ethical lapses occur because teams are humans who make mistakes, yet real leaders with infinite mindsets can transform these setbacks into lessons.

Sinek uses Patagonia, the outdoor apparel company, to exemplify ethics. In 2011, Patagonia issued a full-page ad in The New York Times that read, “Don’t Buy This Jacket” (151). In simple language, the company outlined the environmental cost of making their products to educate consumers. Yvon Chouinard, the founder of Patagonia, justified the ad by saying, “We did it out of guilt […] We all know we have to consume less” (152). In Sinek’s opinion, Chouinard is playing the infinite game by caring about the long-term state of the world. Patagonia runs the Common Threads Initiative, a campaign that promises to repair defective or torn products so people can reuse them. Patagonia also recycles material for new clothes. They work to create a socially responsible supply chain by patterning with the Fair Labor Association to eradicate human trafficking and improve factory conditions for second-tier suppliers. Because of their status as a private company and B Corp (“a company that practices ‘stakeholder capitalism’”), Patagonia considers money fuel to drive their just cause and create a better future (156). They don’t have public stakeholders demanding exponential profits every quarter, as they actively prevent ethical fading.

Part 4, Chapter 9 Summary: “Worthy Rival”

Sinek begins Chapter 9 with a personal anecdote about his rivalry with an unnamed author who also writes in the self-help genre. He regularly compared the ratings of their books, but this changed when he and the author were invited to speak at the same event. Sinek opened the talk by telling the other author, “You make me unbelievably insecure because all your strengths are all my weaknesses. You can do so well the things that I really struggle to do.” The author responded, “The insecurity is mutual” (160). Sinek tells this story to introduce the concept of a “worthy rival.” He considered the other author a competitor because he was trapped in a finite mindset.

A worthy rival is another player in the infinite game, either inside or outside of one’s industry, who acts as a point of comparison. This player does something the same as if not better than us, so we can understand and improve our own weaknesses by comparing. Sinek cites the tennis rivalry between Chris Evert Lloyd and Martina Navratilova during the 1970s and 1980s as an example of worthy rivals. Each player pushed the other to elevate their game by identifying weaknesses through their competitive bouts. However, Sinek doesn’t recommend that leaders obsess over their rivals, as he once did. He then introduces his unnamed rival: Adam Grant.

Adam Grant, author of books such as Give and Take: A Revolutionary Approach to Success (2013) and Originals: How Non-Conformists Move the World (2016), shifted Sinek’s mindset from “channeling feelings of insecurity against [Grant] to partnering with him to advance our common cause” (163). Sinek compares his rivalry with Grant to that between Ford Motor Company and Toyota in 2006 after Alan Mulally became the CEO of Ford. When Mulally became CEO, Ford’s market share was a quarter less than what it was 15 years ago. Other automotive manufacturers surpassed Ford because the American public viewed them as unreliable. Early on, Mulally drove a different model Ford each night. After driving all the models, he asked to drive a Toyota Camry, but Ford didn’t have one. The senior executives hadn’t thought of buying from and researching their competition. Mulally made Ford buy a fleet of competitor vehicles to analyze their manufacturing, determined to make Toyota a worthy rival. Toyota became a standard by which Ford executives and employees could measure their products. Mulally wanted to reestablish Henry Ford’s original just cause: “to provide safe and efficient transportation for everyone, to open the highways to all mankind” (166). Under Mulally’s leadership, Ford weathered the 2008 Great Recession without government assistance. He advocated for other car companies, like GM and Chrysler, to receive bailouts because he believed they were worthy rivals who pushed his company to improve. He also asked GM and Chrysler to team up with Ford to help endure the financial downturn. They refused, but Toyota, Honda, and Nissan agreed to the deal: The infinite-minded companies “understood that the best option for their own survival […] is to keep the game in play” (167).

Sinek also cites Apple and IBM as worthy rivals who competed productively during the 1980s. IBM historically developed computers for business needs, while Apple developed computers for personal needs. When IBM entered the personal computer (PC) industry, they used Apple as a model. In response to IBM’s PC release, Apple launched an ad that read, “Welcome, IBM. Seriously” (168). The rest of the ad spoke to Apple’s respect for IBM as a worthy rival. They emphasized the importance of the PC in everyone’s lives and advanced their just cause through mutual effort. The rivalry between IBM and Apple eventually made PCs a necessity. However, IBM and Apple didn’t just compete through products; they also represented two competing ideologies of the computer industry. Apple framed their brand as a creative tool for artists and innovators, while IBM focused on business professionals. These competing ideologies cultivated brand loyalty for both companies. Over time, as Apple continued to innovate, companies like IBM, Microsoft, and Blackberry lost sight of their just cause and started treating Apple like a competitor in a finite game. Nowadays, Apple’s worthy rivals are Facebook and Google. To Sinek, Apple remains the only major tech company “fighting for the rights of individuals and challenging the status quo” (173).

Sinek proceeds to explain the pitfalls of focusing on a cause too much. “Cause blindness” happens when an individual becomes so obsessed with their cause or proving others’ causes wrong that they fail to recognize their strengths and weaknesses. Cause blindness exacerbates ignorance and instills a finite mindset against potential worthy rivals. People don’t need to find worthy rivals’ just causes right or wrong. To Sinek, establishing moral parameters is unproductive because it distracts from the potential lessons of worthy rivals—lessons to improve their own performances.

Sinek believes the United States’ peremptory declaration of victory after the Berlin Wall fell hampered future foreign policy because they thought they had “won” a finite game. However, the Cold War “met all the standards of an Infinite Game” (175). The disappearance of worthy rivals doesn’t mean victory. In infinite games, advanced players need to recognize worthy rivals as essential for their success. The Soviet Union “dropped out” of the game; the US didn’t defeat them. After the Cold War, the US “suffered a sort of Cause Blindness” because it thought itself unrivaled (176)—when they should have focused on their weaknesses. In Sinek’s analysis of history, the Cold War for the US never ended; it just changed rivals. In the present, North Korea has supplanted the nuclear threat once posed by the Soviets. Sinek compares these geopolitical dynamics to business, citing how major corporations like Facebook, Amazon, and Netflix overpowered former rivals. When MySpace, Borders, and Blockbuster faced these more innovative companies, they refused to consider them worthy rivals from whom to learn.

Part 4, Chapter 10 Summary: “Existential Flexibility”

Sinek starts Chapter 10 with the story of Walt Disney. In 1952, Disney made an “existential flex,” defined as “the capacity to initiate an extreme disruption to a business model or strategic course in order to more effectively advance a Just Cause” (185). This disruption was the creation of Disneyland. After spending the first half of the 20th century honing and redefining the craft of animation, Disney worked to build an idyllic wonderland where people could escape their daily lives. However, he faced considerable upheaval before the construction of Disneyland. After the profitable release of Snow White and the Seven Dwarves in 1937, Walt Disney Productions became more bureaucratic and less visionary. Knowing he couldn’t advance his just cause at Walter Disney Productions anymore, Disney raised money by selling property and taking out a loan against his life insurance policy to start Disneyland. By putting everything at risk, he discovered another way to spread his just cause and vision throughout the world.

Infinite-minded, visionary leaders use existential flexibility when they realize their current path will not advance their just cause. Existential flexibility should not be confused with defensive tactics in the face of financial or technological pressures. It only occurs when a company is already functioning and relatively stable. An infinite-minded leader knows to flex when current business practices inhibit the cause. This move is both a leap of faith and a methodical risk intended to disrupt the status quo for the sake of a better future. Apple’s just cause to “challenge the status quo” with their personal computers is an example of existential flexibility (188). While touring Xerox PARC, Apple’s innovation center in Palo Alto, California, Steve Jobs and other executives saw the latest graphical user interface (GUI) technology, which allowed users to operate a computer without having to learn a computer language. Jobs insisted GUI was what Apple needed to advance its just cause. Despite pushback from the executive team, he redirected millions of dollars toward integrating GUI into Apple products. In four years, Apple introduced the Macintosh, a “computer operating system that completely revolutionized personal computing” (190). Through existential flexibility, Apple made personal computing available to everyone.

Sinek uses Kodak as an example of a company who decided against existential flexibility. Despite leading the photography industry for most of the 20th century, Kodak did not pursue digital photography when the technology became available. To Sinek, they were finite-minded, disinterested in challenging the status quo that made them the most successful photography company in the world. They insisted on sticking with celluloid film and print photography for their business model. Companies like Nikon and Fiji embraced digital photography, and their digital cameras soon overtook Kodak’s products. In 2007, Kodak filed for bankruptcy, as they failed to flex.

Part 4 Analysis

Sinek provides several terms to describe the immoral behavior often associated with a finite mindset. Ethical fading and cause blindness—The Dangers of a Finite Mindset—are two sides of the same coin. Ethical fading occurs when a leader or company makes small unethical decisions to achieve finite goals. Eventually, these decisions compound until a culture of unethical business develops. When a just cause is lost, unclear, or nonexistent, the likelihood of ethical fading increases. Conversely, cause blindness happens when a leader or company believes their just cause is better than others and thus more worthy of advancement. This superiority complex results in companies advancing their own causes at the expense of others. Moreover, companies with cause blindness may refuse to recognize crisis. Existential flexibility cannot be initiated because cause blindness causes stagnation. With that said, Sinek delves into the more nuanced problems of Fostering an Infinite Mindset, as leaders and companies can develop infinite mindsets while slipping into finite habits. In these moments, he advises remembering the causes and effects of one’s just cause. Although just causes are abstract, they produce material effects:

Just Causes exist in our imaginations, but companies and products are real. And for a person or a company with a clear sense of Cause, that individual or organization itself can become the tangible symbol of their intangible vision. It’s easier for us to follow a real company or a leader than an abstract idea. And it’s easier to form a compelling narrative for our Just Cause when we can point to a tangible representation of the alternative (170).

Sometimes, an “intangible vision” distracts, but when leaders and companies embrace themselves as products of just causes, the intangible becomes tangible. This transformation attracts more supporters to a just cause because the people behind the cause embody ethical decision-making and infinite thinking.

Sinek also describes the power of worthy rivals. For him, fellow author Adam Grant is a worthy rival who pushes him to improve his craft; for Alan Mulally of Ford, the company’s longtime rival was Toyota. Worthy rivals are competitors who encourage development, not enemies to fight and defeat. When leaders consider competitors as either enemies or worthy rivals, they are identifying the players in The Games of Business: Finite and Infinite. A finite mindset paints competitors as enemies to be defeated at any cost, even ethics; an infinite mindset paints worthy rivals as healthy competition. An infinite mindset breeds ethical behavior because both rivals are encouraged to make moral decisions. By comparing performances and how they affect the world, rivals push for greater growth. Sinek uses IBM and Apple’s development of personal computers as an example of such growth. Each company observed and researched the other’s process to experiment with their own personal computers. While IBM and Microsoft lost the infinite mindset that considers Apple a worthy rival, Apple continues to develop innovative products according to their just cause. 

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