Reading Notes: Principles by Ray Dalio

IMHO, This is a great book. Period.

Below are some notes. I will put more here when possible.

Work principles

  • An organization is a machine consisting two major parts: culture and people.
    • A great organization should have both great people and great culture.
    • Great people have great character and capabilities.
    • Great culture brings problems and disagreements to the surface and solve them well.
  • In order to achieve both great work and great relationships, one can’t compromise the uncompromisable.
  • A believability-weighted idea meritocracy is the best system for making effective decisions.

How to get the culture right?

  • Trust in radical truth and radical transparency
    • Don’t fear from knowing truth.
    • Have integrity and demand it from others.
    • Speak up, own it, or get out.
    • Be radically transparent
  • Cultivate meaningful work and meaningful relationships
    • Be loyal to common mission.
    • Be crystal clear on what the deal is.
    • Treasure honorable people.
  • Create a culture in which it is ok to make mistakes and unacceptable not to learn from them
  • Get and stay in sync
    • Know how and disagree well.
    • Be open-minded and assertive.
  • Believability weight your decision making
  • Recognize how to get beyond disagreements

How to get the people right?

  • WHO is more important than WHAT.
  • Hire right, because the penalties of hiring wrong are huge.
  • Constantly train, test, evaluate, and sort people.
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