How to read it
I just finished Ray Dalio’s Principles and found the book to be both uneven and very useful.
Sometimes I’d read a few paragraphs and think “I should probably spend the next decade trying to get that right” and sometimes I’d read 10 pages and think “that’s a long way of saying something that everyone already knows.”
Thanks to Ken Bubp, our team is also digging into the book together, which I hope will make us better.
Already, there are a couple of areas where the book made me want to get much better – a few of those detailed below.
The point of a work conversations is to find the truth
The point of social conversation is not to find the truth: it’s to build bonds, have fun, and play status games.
These social habits tend to bleed into work conversations and it takes a lot of deliberate effort to create an environment where truth seeking is the paramount goal of a conversation.
Specifically, truth finding conversations require the implementation of two difficult to reconcile mindsets: not holding tight too tight to one’s own opinions + being aggressive enough to pressure test another person’s opinions.
So team members have to constantly toggle between:
“you’re a smart person who shares my values so I need to figure out why you think I’m wrong because I might be wrong”
“I think you’re wrong because of X and I will not back down from this opinion for the sake of being agreeable”
This is tough to do.
Normalize and embrace emotional and intellectual pain
In social relationships, we tend to avoid pain. Doing so is often bad for the long-term health of social relationships, and it can be devastating in professional settings.
Too often in work:
- It is considered harmful to cause someone else intellectual or emotional pain.
- The first reaction of feeling pain is often to attack others and build self-promoting narratives.
Both of these are very hard to unwind.
It’s very difficult to create a cultural where it is ok to cause someone the right kind of pain.
And it’s very hard to have the individual fortitude to build an internal monologue that goes like this: “the fact that I’m feeling a lot of pain means this is a prime opportunity for growth.”
With fluff and abuse at the polar ends of the cultural spectrum, getting this right is hard.
Leaders are defenders of the standard
The standard for thinking and performance starts at the top, and the leadership of an organization must constantly live the standard and hold all others to the standard (this is also the principle of the great book The Score Takes Care of Itself).
It takes a lot of mental stamina to hold the bar: in 1-1 check-ins, in team meetings, in external conversations with partners…
…to never nod your head unless you mean it is flat out exhausting… to always ask the next probing question is annoying…. to say it’s not good enough yet is tiring…
But if you don’t do it you, your team, your organization will slide into mediocrity.
Getting the balance right between people, processes, and technology
Leaders have a finite amount of energy and capital to allocate across people, processes, and technology.
Different organizations, industries, and time periods require different allocations – as well as different types of expenditures.
Dalio goes deep in how he managed these as he grew his hedge fund, early on relying more on technology than most of his peers. While some his efforts are generalizable, many of them are not.
But the discipline by which he came to his approach is generalizable, and it’s something I want to keep working on as our team, technology, and industry evolve.
After our team conversation, we’ll have to figure out how to apply these lessons. In some cases, it might simply be through consciously applying these principles in our conversations; in some cases, we’ll build processes; and perhaps down the road we’ll build out some technology.