The secret to Ray Dalio’s success.
By Assertive Way
Many thought Ray Dalio, the founder of the biggest hedge fund in the world – Bridgewater Associates, was crazy for running his company with radical transparency.
He explains the makings of Bridgewater’s unusual culture in his book “Principles.” He says those principles were the recipe for his personal and business success. They are based on a concept he calls thoughtful disagreement, which he describes as “meaningful relationships and meaningful work through radical truth and radical transparency.”
Meaningful relationships and meaningful work through radical truth and radical transparency.
He surrounded himself with people who would openly disagree with him, so he could learn about other perspectives that he would otherwise miss. He says “we are all blind in many ways” and that his advantage is that “I know that I don’t know”.
Here are some ideas from his thoughtful disagreement philosophy. If you want to learn more about it, read his book “Principles.”
Who is Ray Dalio?
- Founder of the world’s biggest hedge fund firm, Bridgewater Associates
- Creator of the thoughtful disagreement principle movement, described in his book “Principles”
- Philanthropist
What is the thoughtful disagreement philosophy?
- Disagreement is not conflict
- Open-minded assertiveness
- Radical truth and radical transparency
What is the objective of thoughtful disagreement?
- To radically improve decision quality
- To cultivate meaningful relationships and meaningful work
- To have ideal meritocracy
How does it work in his company?
- All meetings are recorded and are available to everyone, except those with personal or proprietary information
- Everyone has a public profile with their strengths and weaknesses
- No one speaks behind one’s back
How can you have thoughtful disagreement?
- Think independently and be willing to speak your truth and to be radically transparent
- Invite disagreement with curiosity, respect, and humility
- Have a clear process to decide how to make decisions when there is disagreement
What are some rules he uses to facilitate thoughtful disagreement?
- Let people speak at least 2 minutes before interrupting them
- If you can’t advance on your disagreement, agree on a third-party moderator
- Use questions instead of making statements
- Describe back what you heard from the other
- Don’t punish people for their mistakes
Use questions instead of making statements.
Thoughtful disagreement and radical transparency are undoubtedly challenging to implement and to accept but can have huge rewards. How honest are you at work? How often do you speak up and share what you are really thinking?
SUMMARY
Thoughtful disagreement is about creating meaningful relationships and meaningful work through radical truth and radical transparency. It enables better decision making, better relationships, and ideal meritocracy. It requires people to think independently, to invite disagreement openly, and to have a process to resolve differences.
“Thoughtful disagreement is not a battle; its goal is not to convince the other party that he or she is wrong and you are right, but to find out what is true and what to do about it.” – Ray Dalio, founder of Bridgewater Associates