Choosing The Infinite Game
The following is based on one of The Covenant Group’s clients. All of the names and telling details have been changed.
Initially, Ted’s success as a financial advisor was based upon his charisma and status as a former professional basketball player. Standing 6ft. 7in. tall and a muscular 230 lbs, he is an impressive man. His athletic prowess and warm personality drew people to him. Having played and coached professional basketball for 11 years, he returned to his hometown and started a new career as a financial advisor. He became an immediate success. In just three years, his income exceeded $500,000. However, when we started working with him, he was frustrated and the growth rate of his business was slowing.
Until that point, growth had come naturally. Like many talented people, Ted was able to leverage his unique abilities to grow his business. But he could only do so much. Ted was at a breakpoint in his business and his success going forward required a different approach.
In our work with financial advisors, we’ve learned that an advisory practice does not grow in a linear progression. Instead, growth follows a series of “S” curves with breakpoints or “ceilings of complexity” that determine whether the practice will evolve to the next level. Each curve consists of an initial stage of formation or building the base for growth, a second stage of significant growth, and a final stage of slowing growth and eventual plateauing. The peak of the “S” curve is the breakpoint. At this point, future growth requires a new approach and the formation of a new “S” curve. Typically, the breakpoints occur around $125,000 of revenue, $250,000, $500,000, $1,000,000 and $5,000,000 etc. Talented advisors like Ted can get to $500,000 or even $1,000,000 or more solely by leveraging their unique ability. For many advisors, this is exactly what they want to accomplish.
Ted, on the other hand, had a larger vision. He wanted to build the premier financial advisory firm in his community. To do so, he had to change tactics because his success to that point had been based upon playing what we call the Finite Game. In playing the Finite Game, the objective is to leverage individual unique ability. As a result, the success of the business or practice is dependent upon leveraging the time, energy, creativity and intelligence of the principal or advisor. The problem is that one person –no matter how talented– can bring only so much to grow the practice. At some point, they hit a wall and growth peaks. To build the financial advisory firm that he envisioned, Ted had to change the Finite Game he was playing into an Infinite Game. In the Infinite Game, the objective is to leverage not only one’s own unique ability but also the unique abilities of a myriad of people inside and outside your organization to help grow the business.
To take his business to the next level, Ted had to make the transition from “player” to “player/coach”. Fortunately, Ted’s prior experience as a successful basketball player and coach enabled him to recognize what was required to build an effective team. When playing The Finite Game, Ted worked with two assistants whose responsibility was to ensure that Ted could focus on his unique ability through maximizing his time interacting with clients and prospects. As a relationship specialist, Ted’s gift was his ability to earn the trust of his clients. His two support people were, therefore, charged with ensuring that Ted worked at the highest level of his capability.
In The Infinite Game, however, the objective is to leverage the capabilities of all the team members. As a player/coach, Ted has a dual responsibility. He is a star player and a coach who is responsible for the overall success of the team. It is no longer just about him and his performance. Ted realized that he would have to attract other advisors if he wanted to build a multi-million dollar business. In addition, he would need qualified staff that could perform specialized functions, such as Marketing Coordinator or Analyst. He could no longer afford the luxury of solely working with assistants. Instead, he needed an organizational structure that defined the roles, role relationships, accountabilities, and authorities of each person on the team. Working with Ted, we helped him define his business, set objectives, and develop the strategies for building a multi-million dollar enterprise. The good news is that he has successfully made the transition from player to coach.
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The Covenant Group is referred to by many as where entrepreneurs go to become Business Builders. They are considered to be thought leaders and authors of the best-selling books, The 8 Best Practices of High-Performing Salespeople, The Entrepreneurial Journey, and The Business Builder.