Change is like restarting in series - leaders who are interested in long-term success promote resilience in their companies.

First, the bad news: A resilient organization doesn't emerge overnight, or even in a few months. It's much more the result of countless measures, but resilience is especially shaped by (and recognizable through) the attitude of the individual people within the company.

A recent example of this is the Canadian government, which published the following principles for its employees working from home [Source: https://twitter.com/slavetothehat/status/1259978637266366465]:

1. You are not "working from home." You are in your home, during a crisis, and you are trying to work.

2. Your personal physical, mental, and emotional health is more important than anything else.

3. Don't try to compensate for your reduced productivity by working more hours.

4. Do yourself a favor and don't compare your situation to how others are coping.

5. Do others a favor and don't compare their situation to how you are coping.

6. Your team's success won't be measured in the same way as usual.

Providing a sense of security, addressing employees on a personal level, and demonstrating a sense of community not just with posters on the walls, but by living it – these are all clear signals of strong loyalty.

Such a positive, people-centered attitude takes time to develop, but once it does, it's robust and long-lasting. To the benefit of everyone in the company.

How this fundamental attitude fosters continuous innovation has been studied by Jurgen Appelo and Simon Sinek, among others.

The Finite Mindset

In his book "The Infinite Game," Simon Sinek describes two different mindsets: one he calls finite, the other infinite.

This distinction is based on the observation that there are games with known participants, defined rules, and a predetermined time limit [cf. James P. Carse, "Finite and Infinite Games," 1986]. The goal in finite games is to win.

Independent referees ensure that the rules are followed. At the end of the game, the winners are determined. Board games fall into this category, as do running competitions and most team sports. These types of games offer high entertainment value for many people, and some are even addictive.

Companies and their managers, who approach their business with a finite mindset, often pursue one goal: victory—victory over competitors, victory over negotiating partners, or something similar. To achieve this, they define arbitrary key performance indicators (KPIs) for an arbitrary period, allowing them to clearly define their accomplishments as victory.

Some examples:

• Most tablets sold in Q4

• Highest order intake in two years

• More new subscribers than the competitor in the previous month

These combinations of key performance indicators (KPIs) and time periods present two types of pitfalls:

1. The same KPI can look completely different when viewed over a different period.

2. Other KPIs exist over the same period that could lead to different conclusions about "victory."

Personally, I find it downright absurd to assume that a company's purpose ("reason for existence") lies in achieving a specific KPI at a predetermined time. I would even argue that such a fixation on quarterly KPIs diminishes a company's innovative capacity. Why? When all employees are constantly at risk of facing existential hardship due to failing to meet an arbitrary metric, trust doesn't grow. Team spirit is eroded, mistakes are swept under the rug, and recruiting new talent becomes more difficult. All in all, not a good environment for experimentation, feedback, courage, and other ingredients for innovation.

And now for the good news: There is an alternative.

The Infinite Game

Simon Sinek argues that we could just as easily be living in a different reality. In his vision, outstanding leaders set up their organizations for generations—that is, for time horizons far longer than their own lifetime.

Like Carse, he describes the Infinite Game (of which there is only one!) as a system where, over time, the players change just as the rules do. The goal in the Infinite Game is to stay in the game.

No one knows precisely what state the overall system of the Infinite Game is in. Therefore, the respective context shapes the players and the rules.

And for this, adaptability must be developed; resilience is more important here than stability.

Change is serial rebooting

Resilient companies regularly review their environment—it's unlikely that a product will be equally useful to all groups of people at all times, regardless of market conditions or functionality. The cyclical adjustment of business-market fit is a matter of habit, something we've long seen in practice, for example, with "inspect & adapt."

In an infinite game, the actions of other players in the environment are constantly monitored. Here, current, recent knowledge is usually more important than historical insights: Where an opponent's piece was 73 moves ago is not as relevant as the current state of the game; the ongoing trend is more important than a single extreme event.

Simon Sinek writes: "In an infinite game, the players work together to ensure that the game continues for others."

From this mentality, long-lasting relationships develop for both employees and beneficiaries. The staff seeks solutions that contribute to the company's continued existence. Loyal customers are even willing to go out of their way or pay higher prices to acquire the products. This makes the organization resilient.

Resilient companies simultaneously operate diverse business models at different stages of maturity. There are suitable methods and key performance indicators (KPIs) for each phase—but no single method or KPI can last the entire life cycle of a business model. Just like in an endless game, companies must prepare during prosperous times to ensure their survival even under changing circumstances. Companies that embrace this endless game need not fear the demise of a business model.

I'm interested in your opinion on this—please feel free to contact me!