The Summer Olympics were a shining victory for France, the city of Paris, and every one of the athletes who endured the years of training it takes to become an Olympian. These Games also provided a vivid reminder of why France remains one of the world's top tourist destinations.
But beyond the spectacle, the Olympics highlighted, as they almost always do, something more profound: the importance of agreements, competition, and meritocracy.
Agreements, Competition, and Meritocracy
At their core, the Olympics exemplify the best of what the combination of fair play, respect, and meritocracy has to offer. Essentially, these principles are agreements that everyone involved adheres to. They’re essential for creating not just entertaining events but also inspiring stories that stand the test of time.
At the risk of stating the obvious, every event has rules that ensure thrilling competition and allow true excellence to shine. Humankind’s ability to enter into, and then honor, agreements makes this possible. Agreements set the stage for every compelling competition and ensure it remains fair and just. Without these agreements, the Games would likely die off because there would be no drama — only cynicism or disdain for how we collectively let something this extraordinary become corrupted.
If you’re a regular reader of mine, you’ve likely got a sense of how important I think agreements are. What you probably don’t know — and I dive into this extensively in my upcoming book Work 9.0 — is that I believe there are two primary forms of culture in the world: agreements-based and relationships-based. At the core of my respect for agreements-based cultures are three beliefs:- Agreements-based cultures tend to scale better.
- They’re more open to positive and negative feedback loops and thus better at helping us advance the type of useful information we need to collectively evolve.
- They tend to create rules (aka laws and regulations) that minimize their exposure to being taken over by a tyrant.
For me, the Olympics offer a vivid reminder of why I’m a fan of agreements-based cultures that respect free markets and value constitutional republics. These systems endeavor to ensure fair competition while also upholding the essential ingredients of it: fair play and meritocracy. Whether the playing field is athletic or market-based, these principles create dramas that inspire generations to strive for greatness and encourage countless others to embrace similar hard but rewarding journeys.
The Threats to Agreements
As I reflect on the Games, I’m pleased that now more than ever, it seems that the vast majority of the countries, regardless of their culture and/or form of government, are deeply invested in preserving the fairness of the competitions. (This wasn’t the case going back even just a few Olympiads.)
The bad news is that it often feels like more and more people have become intrigued by the idea that certain groups deserve a different set of rules or worse, that rules are for fools. The consequence of this is that we have deep tensions not just globally but even here in the United States. Collectively, we spend a lot of time debating the relative pros and cons of the worldviews associated with agreements-based cultures (like those envisioned by America’s founding fathers) versus those of the relationships-based cultures envisioned by, for example, Karl Marx that are at the core of societies like China, Russia, Iran, and Cuba.
The Necessity of Hard Power
Like it or not, the world is more unsettled than it has been for decades. As a result, many people are making plans based on the assumption that bad times are at hand. French authorities were on high alert throughout the Paris Games but literally had to deal with acts of “coordinated sabotage” of the nation's trains on the day of the opening ceremony. All told, reports said France dedicated 45,000 police officers, 10,000 soldiers, and 22,000 private security personnel to make it possible for us to be reminded of humanity at its best.
In short, the Paris Games were a triumph not just because of the goodwill of humanity but also the hard power that was essential to ensure that the Games were protected from people who despised what they stood for.
This is a stark reminder that the culture of ordered liberty, whether in sports or in global governance, must be defended. Agreements and adherence to them are crucial, but they need to be both respected and protected.
Why Agreements Matter
I deeply believe that any complex endeavor — like starting, building, running, and scaling a company — requires long-term planning and a wide variety of competencies that can only be met by a collection of people operating within a set of reasonably appropriate and clear agreements.
In my mind, clear agreements provide the bedrock of any successful endeavor, whether it's the Olympic Games, the functioning of global markets, how we run our companies, or virtually every healthy relationship. They create a shared understanding by turning expectations into agreements and allowing for fair competition, cooperation, and growth.
When everyone knows the rules and agrees to follow them, it fosters an environment of mutual trust and respect. This is why the societies that have embraced agreements-based cultures, free markets, and constitutional republics are extraordinarily productive and attractive to migrants from all over the world.
One of the ways I try to understand why things are the way they are is by determining if some interesting concept, tool, or discipline (CTD) makes sense not just for a company but for an individual, country, and basically any growth-oriented community. If a CTD’s value holds across these categories, I’m inclined to embrace it until it's proven unuseful or worse.
In the company setting, I believe there are certain agreements that are essential if someone wants to build a decent, if not great, company. To me, that’s a company that someone would love to either buy for a reasonable price or take over running for the current leader.
At Ninety, I’m known to say, “I see agreements everywhere.” They not only include things like the definitions of Core Values and Ideal Customer but also our organizational structure, Rocks, key performance indicators, and even our To-Dos. When these agreements are clear, coherent, and resonant, they simplify decision-making and foster a high-trust environment.
The Olympics as a Model of Agreements-Based Culture
The Olympic Games serve as a powerful model of an agreements-based culture. Athletes, coaches, and officials all operate under agreed-upon rules and standards. This shared commitment to fair play, mutual respect, and meritocracy makes the Games compelling and meaningful. It’s a microcosm of how agreements-based cultures excel at bringing large groups of people together, enabling them to achieve great things.
In the same way, organizations that prioritize agreements create a culture where everyone knows what is expected of them and what they can expect from others. This clarity reduces misunderstandings, builds trust, and enhances collaboration. It’s a powerful lesson we can learn from the Olympics and apply to our own organizations.
Reflecting on Your Organization’s Agreements
To build an agreements-based culture in your organization, start by reflecting on what we believe are four of the most important agreements you collectively need to enter into.
We refer to these as your "Forever Agreements" because they're the subset of your Focus Filters that are often found at the soul of a great organization. I deeply believe that these agreements, once locked in forever, leverage what Einstein referred to as the eighth wonder of the world: the power of compounding. Once your Forever Agreements are in place, you’ll find it significantly easier for your organization to effectively and efficiently scale.
To arrive at your Forever Agreements, ask yourself:
- How do we collectively make life better? What is our Compelling Why that makes our work meaningful?
- What Core Values guide our decisions and actions? Ensure these values are clearly defined and shared by everyone in the organization.
- Who is our Ideal Customer? Make sure everyone understands who you serve and what makes them ideal.
- What is our Compelling Value Proposition? Clearly articulate how your organization differentiates itself from others and why it matters.
If you’ve already developed a clear set of Forever Agreements, awesome. If you haven’t, I’d love you to share this article with your Senior Leadership Team and see if you can align on your Forever Agreements. Once those are in place, ask yourself what other agreements could be better defined. To paraphrase Doc Rivers:
Average leadership teams want to be left alone.
Good leadership teams want a coach.
Great leadership teams want to know the truth.
Thrive with an Agreements-Based Culture
The Olympics highlight the importance of agreements in creating a fair and just environment for competition and meritocracy. These agreements set the stage for excellence, foster trust, and ensure that the spirit of the Games is upheld. By embracing an agreements-based culture, organizations can create a similar environment where everyone is focused, aligned, and thriving.
In these uncertain times, it’s more important than ever to recognize the power of agreements and their role in maintaining order, fostering collaboration, and enabling growth. Just as the Olympics rely on shared rules and mutual respect, so must our organizations (and our countries). By prioritizing agreements, we can build cultures of trust, collaboration, and excellence, paving the way for long-term success and a brighter future for all.
