Principles - Dalio, Ray ![rw-book-cover|200x400](https://readwise-assets.s3.amazonaws.com/static/images/article4.6bc1851654a0.png) ## Metadata - Author: **Dalio, Ray** - Full Title: Principles - Category: #books ## Highlights - I believe that the key to success lies in knowing how to both strive for a lot and fail well. By failing well, I mean being able to experience painful failures that provide big learnings without failing badly enough to get knocked out of the game. ([View Highlight](https://read.readwise.io/read/01ha64e10jzdbp7j1qhmqtb54a)) - Principles are fundamental truths that serve as the foundations for behavior that gets you what you want out of life. They can be applied again and again in similar situations to help you achieve your goals. ([View Highlight](https://read.readwise.io/read/01ha63q59g0g1pn6txc9b7enkm)) - Think for yourself to decide 1) what you want, 2) what is true, and 3) what you should do to achieve #1 in light of #2 ([View Highlight](https://read.readwise.io/read/01ha65hhzb79jp0fwccyxpd4kn)) - The most important thing is that you develop your own principles and ideally write them down, especially if you are working with others. ([View Highlight](https://read.readwise.io/read/01ha64pkrtwb3nwehb8m2j797q)) - People who have shared values and principles get along. People who don’t will suffer through constant misunderstandings and conflicts. ([View Highlight](https://read.readwise.io/read/01ha65kzs3mqxha6xg3vdxr4sm)) - Experience taught me how invaluable it is to reflect on and write down my decision-making criteria whenever I made a decision, so I got in the habit of doing that. ([View Highlight](https://read.readwise.io/read/01ha65vvwnpkpy57fehef069qr)) - Systemize your decision making ([View Highlight](https://read.readwise.io/read/01ha65ve0tg2vs8dy1k6c2fv19)) - 1. Have clear goals. 2. Identify and don’t tolerate the problems that stand in the way of your achieving those goals. 3. Accurately diagnose the problems to get at their root causes. 4. Design plans that will get you around them. 5. Do what’s necessary to push these designs through to results. ([View Highlight](https://read.readwise.io/read/01ha666wj5n95zj744fqdsh9be)) - View painful problems as potential improvements that are screaming at you. Though it won’t feel that way at first, each and every problem you encounter is an opportunity; for that reason, it is essential that you bring them to the surface ([View Highlight](https://read.readwise.io/read/01ha6873f75zrqjdxfkdcf4508)) - Thinking about problems that are difficult to solve may make you anxious, but not thinking about them (and hence not dealing with them) should make you more anxious still ([View Highlight](https://read.readwise.io/read/01ha6ac6avcs2265tbnsvb5sep)) - Be specific in identifying your problems. You need to be precise, because different problems have different solutions. If a problem is due to inadequate skill, additional training may be called for; if it arises from an innate weakness, you may need to seek assistance from someone else or change the role you play. In other words, if you’re bad at accounting, hire an accountant. ([View Highlight](https://read.readwise.io/read/01ha7nday46qa4ekhshr289406)) - Focus on the “what is” before deciding “what to do about it.” It is a common mistake to move in a nanosecond from identifying a tough problem to proposing a solution for it. Strategic thinking requires both diagnosis and design ([View Highlight](https://read.readwise.io/read/01ha7nkfd9s24qk2pcymnyajvy)) - Go back before you go forward. Replay the story of where you have been (or what you have done) that led up to where you are now, and then visualize what you and others must do in the future so you will reach your goals. ([View Highlight](https://read.readwise.io/read/01ha7nv5j36ak2k4pg4234rxnm)) - Think about your problem as a set of outcomes produced by a machine. Practice higher-level thinking by looking down on your machine and thinking about how it can be changed to produce better outcomes. ([View Highlight](https://read.readwise.io/read/01ha7nxjkt0fkvh5hv7v385523)) - Remember that there are typically many paths to achieving your goals. You only need to find one that works. ([View Highlight](https://read.readwise.io/read/01ha7nxtjy2anr6xzrr5fdq87j)) - Think of your plan as being like a movie script in that you visualize who will do what through time. Sketch out the plan broadly at first (e.g., “hire great people”) and then refine it. You should go from the big picture and drill down to specific tasks and estimated time lines (e.g., “In the next two weeks, choose the headhunters who will find those great people”). The real-world issues of costs, time, and personnel will undoubtedly surface as you do this, and that will lead you to further refine your design until all the gears in the machine are meshing smoothly. ([View Highlight](https://read.readwise.io/read/01ha7nzq010rb6b6c98zxaa2fq)) - Write down your plan for everyone to see and to measure your progress against. This includes all the granular details about who needs to do what tasks and when. The tasks, the narrative, and the goals are different, so don’t mix them up. Remember, the tasks are what connect the narrative to your goals. ([View Highlight](https://read.readwise.io/read/01ha7p0gv1p371dd587428kqz9)) - Recognize that it doesn’t take a lot of time to design a good plan. A plan can be sketched out and refined in just hours or spread out over days or weeks. But the process is essential because it determines what you will have to do to be effective. Too many people make the mistake of spending virtually no time on designing because they are preoccupied with execution. Remember: Designing precedes doing! ([View Highlight](https://read.readwise.io/read/01ha7p1axekw5k7wxrpv2pa4jj)) - Good work habits are vastly underrated. People who push through successfully have to-do lists that are reasonably prioritized, and they make certain each item is ticked off in order. ([View Highlight](https://read.readwise.io/read/01ha7p2tf0jwrs8xgavnpwg8jw)) - There are many successful, creative people who aren’t good at execution. They succeed because they forge symbiotic relationships with highly reliable task-doers. ([View Highlight](https://read.readwise.io/read/01ha7p4f8gembe0zb3wqycxwqy)) - You will need to synthesize and shape well. The first three steps—setting goals, identifying problems, and then diagnosing them—are synthesizing (by which I mean knowing where you want to go and what’s really going on). Designing solutions and making sure that the designs are implemented are shaping. ([View Highlight](https://read.readwise.io/read/01ha7p874m4hmk0knmm7ead041)) - Tags: #personal development - Knowing what your weaknesses are and staring hard at them is the first step on the path to success. ([View Highlight](https://read.readwise.io/read/01ha80cpn22vdg2ca922t7y8a5)) - There are two paths to success: 1) to have what you need yourself or 2) to get it from others. ([View Highlight](https://read.readwise.io/read/01ha80jnx54qnn6e7xmk4csc3j)) - ![](https://readwise-assets.s3.amazonaws.com/media/reader/parsed_document_assets/89207243/item96-image00364.jpeg) ([View Highlight](https://read.readwise.io/read/01ha80svqngqje8j7v6xpcxp2z)) - The two biggest barriers to good decision making are your ego and your blind spots. ([View Highlight](https://read.readwise.io/read/01ha80ws9nntavjwhbg80vwqgq)) - Your deepest-seated needs and fears—such as the need to be loved and the fear of losing love, the need to survive and the fear of not surviving, the need to be important and the fear of not mattering—reside in primitive parts of your brain such as the amygdala, which are structures in your temporal lobe that process emotions. Because these areas of your brain are not accessible to your conscious awareness, it is virtually impossible for you to understand what they want and how they control you. They oversimplify things and react instinctively. They crave praise and respond to criticism as an attack, even when the higher-level parts of the brain understand that constructive criticism is good for you. They make you defensive, especially when it comes to the subject of how good you are. ([View Highlight](https://read.readwise.io/read/01ha811z6afj0bfb36j5vxt3wp)) - To be effective you must not let your need to be right be more important than your need to find out what’s true. ([View Highlight](https://read.readwise.io/read/01ha8mr38sk9bva3faaqmcqj11)) - Those who adapt do so by a) teaching their brains to work in a way that doesn’t come naturally (the creative person learns to become organized through discipline and practice, for instance), b) using compensating mechanisms (such as programmed reminders), and/or c) relying on the help of others who are strong where they are weak. ([View Highlight](https://read.readwise.io/read/01ha8n4mvh4gt4ve4zdnv6eqh8)) - Aristotle defined tragedy as a terrible outcome arising from a person’s fatal flaw—a flaw that, had it been fixed, instead would have led to a wonderful outcome. In my opinion, these two barriers—ego and blind spots—are the fatal flaws that keep intelligent, hardworking people from living up to their potential. ([View Highlight](https://read.readwise.io/read/01ha8neeyhjegcs4e5h54r3082)) - decision making is a two-step process: First take in all the relevant information, then decide ([View Highlight](https://read.readwise.io/read/01ha8nxrba05wkkjnv6gcxm0bh)) - creative genius often exists at the edge of insanity ([View Highlight](https://read.readwise.io/read/01haaf5k3z8wzqw06ea2wc93as)) - The brainstem controls the subconscious processes that keep us and other species alive—heartbeat, breathing, nervous system, and our degree of arousal and alertness. ([View Highlight](https://read.readwise.io/read/01haan9mxeq518w7grd073h9g8)) - ![](https://readwise-assets.s3.amazonaws.com/media/reader/parsed_document_assets/89207243/item98-image00366.jpeg) ([View Highlight](https://read.readwise.io/read/01haandsf90cbxk5qz5cp4z84v)) - In his book The Meaning of Human Existence, Pulitzer Prize–winning author Edward O. Wilson surmises that between one million and two million years ago, when our ancestors were somewhere between chimpanzees and modern homo sapiens, the brain evolved in ways supporting cooperation so man could hunt and do other activities. ([View Highlight](https://read.readwise.io/read/01haap4qte41es0tcwd9ty6dsc)) - the rewards of working together to make the pie bigger are greater than the rewards of self-interest, not only in terms of how much “pie” one gets but also in the psychic rewards wired into our brains that make us happier and healthier. ([View Highlight](https://read.readwise.io/read/01haap9qtdn8wbsad6ccfat3vj)) - the brain evolution that I described has given us (some people more than others) the ability to see ourselves and our circumstances from a higher holistic level and, in some cases, to value the whole that we are part of even more than ourselves. ([View Highlight](https://read.readwise.io/read/01haapc43ey65q8fyy6vys0ra8)) - His view was that prayer and meditation seemed to have similar effects on the brain in producing feelings of spirituality (the rising above oneself to feel a greater connection to the whole) but that each religion adds its own different superstitions on top of that common feeling of spirituality. ([View Highlight](https://read.readwise.io/read/01haapjjspqm5j6w7sceakfxs2)) - Our greatest moments of inspiration often “pop” up from our subconscious. We experience these creative breakthroughs when we are relaxed and not trying to access the part of the brain in which they reside, which is generally the neocortex. When you say, “I just thought of something,” you noticed your subconscious mind telling your conscious mind something. With training, it’s possible to open this stream of communication. ([View Highlight](https://read.readwise.io/read/01hab5ayhrcda3bt6pest48ng7)) - When thoughts and instructions come to me from my subconscious, rather than acting on them immediately, I have gotten into the habit of examining them with my conscious, logical mind. I have found that in addition to helping me figure out which thoughts are valid and why I am reacting to them as I do, doing this opens further communication between my conscious and subconscious minds. It’s helpful to write down the results of this process. In fact that’s how my Principles came about. ([View Highlight](https://read.readwise.io/read/01hab67dh9semhk01509yznhfj)) - Know that the most constant struggle is between feeling and thinking. There are no greater battles than those between our feelings (most importantly controlled by our amygdala, which operates subconsciously) and our rational thinking (most importantly controlled by our prefrontal cortex, which operates consciously). If you understand how those battles occur you will understand why it is so important to reconcile what you get from your subconscious with what you get from your conscious mind. ([View Highlight](https://read.readwise.io/read/01hab6bcaebna3pf96czbttqb8)) - If you do just about anything frequently enough over time, you will form a habit that will control you. ([View Highlight](https://read.readwise.io/read/01hab9t4thp9gptmg7rryep146)) - Good habits are those that get you to do what your “upper-level you” wants, and bad habits are those that are controlled by your “lower-level you” and stand in the way of your getting what your “upper-level you” wants. ([View Highlight](https://read.readwise.io/read/01hab9wg20322b2swmnmpgx4rv)) - Habit is essentially inertia, the strong tendency to keep doing what you have been doing (or not doing what you have not been doing). ([View Highlight](https://read.readwise.io/read/01haba1xz82n6n9w9p88713djt)) - Research suggests that if you stick with a behavior for approximately eighteen months, you will build a strong tendency to stick to it nearly forever. ([View Highlight](https://read.readwise.io/read/01haba2jmwkc29fah4p7f29xev)) - ![](https://readwise-assets.s3.amazonaws.com/media/reader/parsed_document_assets/89207243/item99-image00367.jpeg) ([View Highlight](https://read.readwise.io/read/01habaa797qm5wayq29wwdvkya)) - The most valuable habit I’ve acquired is using pain to trigger quality reflections ([View Highlight](https://read.readwise.io/read/01habaw7krzy4kwyemwdgn7ktg)) - Train your “lower-level you” with kindness and persistence to build the right habits. I used to think that the upper-level you needed to fight with the lower-level you to gain control, but over time I’ve learned that it is more effective to train that subconscious, emotional you the same way you would teach a child to behave the way you would like him or her to behave—with loving kindness and persistence so that the right habits are acquired. ([View Highlight](https://read.readwise.io/read/01habaxnn39any7tpagmczqn3j)) - The left hemisphere reasons sequentially, analyzes details, and excels at linear analysis. “Left-brained” or “linear” thinkers who are analytically strong are often called “bright.” ([View Highlight](https://read.readwise.io/read/01habb448eccg62tnfdvf15tqq)) - Brain plasticity is what allows your brain to change its “softwiring.” For a long time, scientists believed that after a certain critical period in childhood, most of our brain’s neurological connections were fixed and highly unlikely to change. But recent research has suggested that a wide variety of practices—from physical exercise to studying to meditation—can lead to physical and physiological changes in our brains that affect our abilities to think and form memories. In a study of Buddhist monks who had practiced more than ten thousand hours of meditation, researchers at the University of Wisconsin measured significantly higher levels of gamma waves in their brains; these waves are associated with perception and problem solving ([View Highlight](https://read.readwise.io/read/01habc0anmgax189rktccxexz6)) - Instead of expecting yourself or others to change, I’ve found that it’s often most effective to acknowledge one’s weaknesses and create explicit guardrails against them. This is typically a faster and higher-probability path to success. ([View Highlight](https://read.readwise.io/read/01habc7kje2n5zytmh1dgmajwt)) - Introversion vs. extroversion. Introverts focus on the inner world and get their energy from ideas, memories, and experiences while extroverts are externally focused and get their energy from being with people. Introversion and extroversion are also linked to differences in communication styles. If you have a friend who loves to “talk out” ideas (and even has trouble thinking through something if there isn’t someone around to work it through with), he or she is likely an extrovert. Introverts will usually find such conversations painful, preferring to think privately and share only after they’ve worked things out on their own. I’ve found that it is important to help each communicate in the way that they feel most comfortable. For example, introverts often prefer communicating in writing (such as email) rather than speaking in group settings and tend to be less open with their critical thoughts. ([View Highlight](https://read.readwise.io/read/01habcfqgwk2canbtvts4gnv9q)) - Intuiting vs. sensing. Some people see big pictures (forests) and others see details (trees). In the Myers-Briggs framework, these ways of seeing are best represented by the continuum from intuiting to sensing. You can get an idea of people’s preferences by observing what they focus on. For example, when reading, a sensing person who focuses on details can be thrown off by typos such as “there” instead of “their,” while intuitive thinkers won’t even notice the mistake. That is because the intuitive thinker’s attention is focused on the context first and the details second. Naturally, you’d rather have a sensing person than an intuitor preparing your legal documents, where every “i” must be properly dotted and every “t” crossed just so. ([View Highlight](https://read.readwise.io/read/01habckkfqqssf6ctjwb9kxrj3)) - Thinking vs. feeling. Some people make decisions based on logical analysis of objective facts, considering all the known, provable factors important to a given situation and using logic to determine the best course of action. This approach is an indicator of a preference for thinking and is how you’d hope your doctor thinks when he makes a diagnosis. Other people—who prefer feeling—focus on harmony between people. They are better suited to roles that require lots of empathy, interpersonal contact, and relationship building, for example HR and customer service. Before we had assessments to identify these differences, conversations between “Ts” and “Fs” were really frustrating. Now we laugh as we bump up against our differences, because we know what they are and can see them playing out in classic ways. ([View Highlight](https://read.readwise.io/read/01habcq6rchyk1ypcmwbq4j07f)) - Planning vs. perceiving. Some people like to live in a planned, orderly way and others prefer flexibility and spontaneity.[35](#ch00-fn35) Planners (or “Judgers” in Myers-Briggs terms) like to focus on a plan and stick with it, while perceivers are prone to focus on what’s happening around them and adapt to it. Perceivers work from the outside in; they see things happening and work backward to understand the cause and how to respond; they also see many possibilities that they compare and choose from—often so many that they are confused by them. In contrast, planners work from the inside out, first figuring out what they want to achieve and then how things should unfold. Planners and perceivers have trouble appreciating each other. Perceivers see new things and change direction often. This is discomforting to planners, who weigh precedent much more heavily in their decision making, and assume if it was done in a certain way before, it should be done in the same way again. Similarly, planners can discomfort perceivers by being seemingly rigid and slow to adapt. ([View Highlight](https://read.readwise.io/read/01habd27qq26fgxzp1qzw586ys)) - By radical truth, I mean not filtering one’s thoughts and one’s questions, especially the critical ones. If we don’t talk openly about our issues and have paths for working through them, we won’t have partners who collectively own our outcomes. ([View Highlight](https://read.readwise.io/read/01j8bt5av0829cd01s4g3gdkh9)) - By radical transparency, I mean giving most everyone the ability to see most everything. To give people anything less than total transparency would make them vulnerable to others’ spin and deny them the ability to figure things out for themselves. Radical transparency reduces harmful office politics and the risks of bad behavior because bad behavior is more likely to take place behind closed doors than out in the open. ([View Highlight](https://read.readwise.io/read/01j8btds79ta9q75j1tczrh6py)) - Idea Meritocracy = Radical Truth + Radical Transparency + Believability-Weighted Decision Making. ([View Highlight](https://read.readwise.io/read/01j8bth505hphvv4p5yvpm40dj)) - You have to work in a culture that suits you. That’s fundamental to your happiness and your effectiveness. You also must work in a culture that is effective in producing great outcomes, because if you don’t, you won’t get the psychic and material rewards that keep you motivated ([View Highlight](https://read.readwise.io/read/01ha66ayfexprhkr2mq7r6znhd)) - Most people get caught up in the blizzard of things coming at them. In contrast, successful people get above the blizzard so they can see the causes and effects at play. ([View Highlight](https://read.readwise.io/read/01ha66tbgeqjt0k09hcp73rst9)) - No matter what work you do, at a high level you are simply setting goals and building machines to help you achieve them ([View Highlight](https://read.readwise.io/read/01ha66vh8drbbgrdgrmdny70v8)) - Governance is the oversight system that removes the people and the processes if they aren’t working well ([View Highlight](https://read.readwise.io/read/01hab8409f0y3jmnh6mvs90bwv)) - The company is operating in accordance with its agreed-upon principles and rules. The board has the power to select and replace the CEOs, but doesn’t engage in the micromanagement of the firm nor the people running it, though in the event of an emergency, they can drop into a more active role ([View Highlight](https://read.readwise.io/read/01habg0sny3fv8rfnhhg8cjjvf)) - In our idea meritocracy, the CEOs are also held accountable by the employees of the company, even though these employees are subordinate to the CEOs ([View Highlight](https://read.readwise.io/read/01hag6bgk8knq0qfcp9tf1tzam)) - For the same reason we have more than one CEO overseeing management of the company, we have more than one chief investment officer (there are currently three). ([View Highlight](https://read.readwise.io/read/01hag6f3r5t32qn9kj4sjsxwc3)) - We work with others to get three things: 1) Leverage to accomplish our chosen missions in bigger and better ways than we could alone. 2) Quality relationships that together make for a great community. 3) Money that allows us to buy what we need and want for ourselves and others. ([View Highlight](https://read.readwise.io/read/01hag6qta4jesegv2yh3jkevky)) - I have tried to convey the approach that worked for me—an idea meritocracy in which meaningful work and meaningful relationships are the goals and radical truth and radical transparency are the ways of achieving them—so that you can decide what, if any of it, is of use to you. ([View Highlight](https://read.readwise.io/read/01hag771ntrw4r7wjaht2yxpr5)) - of all approaches to decision making, an idea meritocracy is the best ([View Highlight](https://read.readwise.io/read/01hag7ck9eb1c9gg45gch7a0ft)) - It’s almost too obvious to warrant saying, but I will anyway: Knowing what you can and cannot expect from each person and knowing what to do to make sure the best ideas win out are the best way to make decisions ([View Highlight](https://read.readwise.io/read/01hag7dqkk0v1qjhdns0drg9kd)) - ![](https://readwise-assets.s3.amazonaws.com/media/reader/parsed_document_assets/89207243/item122-image00390.jpeg) ([View Highlight](https://read.readwise.io/read/01ha67zkqanvv4sbsq2eaqyka7)) - An idea meritocracy requires people to do three things: 1) Put their honest thoughts on the table for everyone to see, 2) Have thoughtful disagreements where there are quality back-and-forths in which people evolve their thinking to come up with the best collective answers possible, and 3) Abide by idea-meritocratic ways of getting past the remaining disagreements (such as believability-weighted decision making ([View Highlight](https://read.readwise.io/read/01haggmhjp3f0kf2k67z5r9khj)) - Recognize that decision makers must have access to the information necessary to make decisions and must be trustworthy enough to handle that information safely. That doesn’t mean that all people must have access and be trustworthy. It is possible to have subcommittees who have access to sensitive information and make recommendations to the board that are substantiated with enough information to make good judgments, but without disclosing the highly sensitive particulars. ([View Highlight](https://read.readwise.io/read/01hafcte1z746szy6ypqgbg7jz)) - Remember that in an idea meritocracy a single CEO is not as good as a great group of leaders. ([View Highlight](https://read.readwise.io/read/01hafcw945wq0h2tcxkqbfs0r9)) - my wishes for you are that: 1) You can make your work and your passion one and the same; 2) You can struggle well with others on your common mission to produce the previously mentioned rewards; 3) You can savor both your struggles and your rewards; and 4) You will evolve quickly and contribute to evolution in significant ways. ([View Highlight](https://read.readwise.io/read/01hagk5p6fytsk7xhjnd1mbap9)) - Because there are too many principles for anyone to keep top of mind enough to apply appropriately to whatever situation they face, and because it’s easier to ask for advice than to seek it out in a book, I created Coach. Coach’s platform is populated with a library of common situations, or “ones of those” (e.g., disagreeing with an assessment someone made, someone lied or did something unethical, etc.), which are linked to the relevant principles to help people handle them. As people use Coach, they give feedback on the quality of advice it provides, essentially coaching the Coach so that it can deliver better and better advice. Over time, Coach has become increasingly effective in much the same way Siri has. ([View Highlight](https://read.readwise.io/read/01j8btn0sfd6a24w74e7b2yetv)) - Participants continuously record their assessments of each other by giving them “dots,” positive or negative, on any number of several dozen attributes. These dots are laid out in a grid that updates dynamically, so that everyone in the conversation can see one another’s thinking as the meeting progresses. Doing this helps people shift their perspectives from being stuck in their own heads with their own opinions to looking down on everyone’s views. Seeing things through everyone’s eyes naturally causes most people to adopt the higher-level view in which they recognize that their own perspective is just one of many, so they ask themselves which criteria are best for deciding how to resolve the issue at hand. In this way it promotes open-minded, idea-meritocratic, collective decision making. ([View Highlight](https://read.readwise.io/read/01j8btqvhx7jwq5vmt2k39zhx3)) - The Issue Log is our primary tool for recording our mistakes and learning from them. We use it to bring all problems to the surface, so we can put them in the hands of problem solvers to make systematic improvements. It acts like a water filter that catches garbage. Anything that goes wrong must be “issue logged” with the severity of the issue and who is responsible for it specified, so that it’s easy to sort through most problems. Issue logs also provide paths for diagnosing problems and the information pertaining to them. In that way, they also provide effective metrics of performance, as they allow you to measure the numbers and types of problems coming up (and identify the people who are contributing to them and fixing them). ([View Highlight](https://read.readwise.io/read/01j8btw663pmh6je0qzvpwjzht)) - Pain Button. The moment someone experiences pain is the best time for them to record what the pain is like, but it’s a bad time to reflect because it’s hard to keep a clear head. So the app is designed to let people record the emotions they are feeling (anger, disappointment, frustration, etc.) as they feel them and then come back at a later time to reflect on them using guided reflection questions. The tool prompts the people who experienced the pain to specify what they will do to deal with that situation, so that the pain is mitigated in the future (for example, have a quality conversation with the person who is causing the pain, etc.) ([View Highlight](https://read.readwise.io/read/01j8btxgj8ybqccvbrgd5rjgek)) - Dispute Resolver provides paths for resolving disagreements in an idea-meritocratic way. It asks a series of questions used to guide the people through the resolution process. One of its features is that it locates believable people who can help determine whether a disagreement is worth taking up at a higher management level ([View Highlight](https://read.readwise.io/read/01j8bv09g62ga4k6ytsk98yekx)) - For years, I have asked each person who reports to me to take about ten to fifteen minutes to write a brief email of what they did that day, the issues pertaining to them, and their reflections. By reading these updates and triangulating them (in other words, seeing different people’s takes on what they are doing), I can gauge how they are working together, what their moods are, and which threads I should pull ([View Highlight](https://read.readwise.io/read/01j8bv12y88x9x4f4k55wcy6mn)) - How often have you ended a meeting with everybody saying we should do this or that, but then everybody walks off and nothing actually happens because people lose track of what was agreed upon? Implicit contracts are pretty much worthless; the commitments people make to each other need to be explicit to be actionable—and firm enough to hold each other accountable. The Contract Tool is a simple app that lets people make and monitor their commitments to each other. It helps both the people who requested things, and those who are required to provide those things, to easily stay on top of them. ([View Highlight](https://read.readwise.io/read/01j8bv1es4vfkhb04rc8sey5fa)) - Just as an engineer uses flow charts to understand the workflow of what they’re designing, a manager needs a Process Flow Diagram to help visualize the organization as a machine. It might have references to an organizational chart that shows who reports to whom, or the org chart might supplement the Process Flow Diagram. ([View Highlight](https://read.readwise.io/read/01j8bv1s6entjdah8w55ydpq8e)) - As the saying goes, “You can’t manage what you can’t measure.” By measuring how your machine is working, you can manage it more easily, especially if you can enlist the help of algorithms to do a lot of your thinking and work for you. ([View Highlight](https://read.readwise.io/read/01j8bv2347r7zj8gekreh3xrnm)) - I have found it helpful to think of my life as if it were a game in which each problem I face is a puzzle I need to solve. By solving the puzzle, I get a gem in the form of a principle that helps me avoid the same sort of problem in the future. ([View Highlight](https://read.readwise.io/read/01j84629kjsqxbt7znfqvnpt1a)) - Dreams + Reality + Determination = A Successful Life. ([View Highlight](https://read.readwise.io/read/01j846a95m3gcmsaendzkk2g24)) - Truth—or, more precisely, an accurate understanding of reality—is the essential foundation for any good outcome. ([View Highlight](https://read.readwise.io/read/01j846ftte4xev389k5g835qd0)) - Tags: #rationality - Be radically open-minded and radically transparent. ([View Highlight](https://read.readwise.io/read/01j846hne3s74hxzyr8r0exyds)) - Radical open-mindedness and radical transparency are invaluable for rapid learning and effective change. ([View Highlight](https://read.readwise.io/read/01j846jac5ebtyaq1wgadmdwby)) - Don’t let fears of what others think of you stand in your way. ([View Highlight](https://read.readwise.io/read/01j846m2120n23s7v4xpvzvpmc)) - Embracing radical truth and radical transparency will bring more meaningful work and more meaningful relationships. ([View Highlight](https://read.readwise.io/read/01j846t2vysmpbqkqx83pbhh8k)) - Don’t confuse what you wish were true with what is really true. 2. Don’t worry about looking good—worry instead about achieving your goals. 3. Don’t overweight first-order consequences relative to second- and third-order ones. 4. Don’t let pain stand in the way of progress. 5. Don’t blame bad outcomes on anyone but yourself. ([View Highlight](https://read.readwise.io/read/01j85amphvc7hds7qh28093zeq)) - Knowing when not to make your own decisions is one of the most important skills you can develop. ([View Highlight](https://read.readwise.io/read/01j85an180a07535s88fqvhkxs)) - I like to triangulate opinions with believable people. ([View Highlight](https://read.readwise.io/read/01j86tvsvmtwcs43yshk6snd7y)) - Creators generate new ideas and original concepts. They prefer unstructured and abstract activities and thrive on innovation and unconventional practices. • Advancers communicate these new ideas and carry them forward. They relish feelings and relationships and manage the human factors. They are excellent at generating enthusiasm for work. • Refiners challenge ideas. They analyze projects for flaws, then refine them with a focus on objectivity and analysis. They love facts and theories and working with a systematic approach. • Executors can also be thought of as Implementers. They ensure that important activities are carried out and goals accomplished; they are focused on details and the bottom line. • Flexors are a combination of all four types. They can adapt their styles to fit certain needs and are able to look at a problem from a variety of perspectives. ([View Highlight](https://read.readwise.io/read/01j89d44xf5e33tw1yxv0xw6fs)) - Focusing on tasks vs. focusing on goals. Some people are focused on daily tasks while others are focused on their goals and how to achieve them. I’ve found these differences to be quite similar to the differences between people who are intuitive vs. sensing. Those who tend to focus on goals and “visualize” best can see the big pictures over time and are also more likely to make meaningful changes and anticipate future events. These goal-oriented people can step back from the day-to-day and reflect on what and how they’re doing. They are the most suitable for creating new things (organizations, projects, etc.) and managing organizations that have lots of change. They typically make the most visionary leaders because of their ability to take a broad view and see the whole picture. ([View Highlight](https://read.readwise.io/read/01j89dr2w212v7ycmvxjwg8m33)) - Recognize that 1) the biggest threat to good decision making is harmful emotions, and 2) decision making is a two-step process (first learning and then deciding). ([View Highlight](https://read.readwise.io/read/01j8ak4w8p980d2521ywjbh6rx)) - ![](https://readwise-assets.s3.amazonaws.com/media/reader/parsed_document_assets/89207243/u67llOCMfu7kZhYcfaCRIQhyiopdDo1GXKa8RAOSjKg-item_9jKBlvX.jpeg) ([View Highlight](https://read.readwise.io/read/01j8ak7kp8czta2tmt9p0nj8nt)) - A manager’s ability to recognize when outcomes are inconsistent with goals and then modify designs and assemble people to rectify them makes all the difference in the world. The more often and more effectively a manager does this, the steeper the upward trajectory. ([View Highlight](https://read.readwise.io/read/01j8akdts4t0nb1h1h3zcam48h)) - To me, great partnerships come from sharing common values and interests, having similar approaches to pursuing them, and being reasonable with, and having consideration for, each other. ([View Highlight](https://read.readwise.io/read/01j8akm6e78sykc18xpwkp3mzy)) - Having clear processes for resolving disagreements efficiently and clearly is essential for business partnerships, marriages, and all other forms of partnership. ([View Highlight](https://read.readwise.io/read/01j8akn9696myz8f6whp5wbxz3)) - Tough love is effective for achieving both great work and great relationships. ([View Highlight](https://read.readwise.io/read/01j8akqgyzk7jtkkvrjf1tfsp2)) - It is a fundamental law of nature that you get stronger only by doing difficult things. ([View Highlight](https://read.readwise.io/read/01j8bwxz7xedd4a0m40hh7h02h)) - Those rules and how you should follow them depend on your relative believabilities. For example, it would not be effective for the person who knows less to tell the person who knows more how something should be done. It’s important to get the balance between your assertiveness and your open-mindedness right, based on your relative levels of understanding of the subject. ([View Highlight](https://read.readwise.io/read/01j8djwnzjj7g0153j2zg7zyks)) - If someone asks you a question, think first whether you’re the right person to answer it. If you’re not believable, you probably shouldn’t have an opinion about what they’re asking, let alone share it. ([View Highlight](https://read.readwise.io/read/01j8dk58a63m2zwzbh64mvg8vk)) - A culture and its people are symbiotic—the culture attracts certain kinds of people and the people in turn either reinforce or evolve the culture based on their values and what they’re like. ([View Highlight](https://read.readwise.io/read/01j8efnv6ffn7hh34yrn7v5etw)) - Constantly Train, Test, Evaluate, and Sort People. ([View Highlight](https://read.readwise.io/read/01j8efzdwm58pe8sgvermptb87)) - People often make the mistake of focusing on what should be done while neglecting the more important question of who should be given the responsibility for determining what should be done. ([View Highlight](https://read.readwise.io/read/01j8eg2gsmahznrvqkn5fm83yr)) - a. Look for people who have lots of great questions. Smart people are the ones who ask the most thoughtful questions, as opposed to thinking they have all the answers. Great questions are a much better indicator of future success than great answers. ([View Highlight](https://read.readwise.io/read/01j8fhsp1z6ffre5xn0tyejtbp)) - b. Show candidates your warts. Show your job prospects the real picture, especially the bad stuff. Also show them the principles in action, including the most difficult aspects. That way you will stress-test their willingness to endure the real challenges. ([View Highlight](https://read.readwise.io/read/01j8fhst094attr6h3mfm3tc7q)) - c. Play jazz with people with whom you are compatible but who will also challenge you. You need people who share your tastes and style but who can also push and challenge each other. The best teams, whether in music, in sports, or in business, do all those things at the same time. ([View Highlight](https://read.readwise.io/read/01j8fhsy9vfyr7ehxe0m4ks0aa)) - Recognize that tough love is both the hardest and the most important type of love to give (because it is so rarely welcomed). ([View Highlight](https://read.readwise.io/read/01j8h4bq2zjj6d7vy5mjdv7v5j)) - Compliments are easy to give but they don’t help people stretch. Pointing out someone’s mistakes and weaknesses (so they learn what they need to deal with) is harder and less appreciated, but much more valuable in the long run. ([View Highlight](https://read.readwise.io/read/01j8h4cvgm48j7rp21qfswg468)) - Recognize that while most people prefer compliments, accurate criticism is more valuable. ([View Highlight](https://read.readwise.io/read/01j8h4dey7s11fvkmycf4ey164)) - Great managers are not philosophers, entertainers, doers, or artists. They are engineers. They see their organizations as machines and work assiduously to maintain and improve them. They create process-flow diagrams to show how the machine works and to evaluate its design. They build metrics to light up how well each of the individual parts of the machine (most importantly, the people) and the machine as a whole are working. ([View Highlight](https://read.readwise.io/read/01j8kre1nva3rb3nze8h3nt4pf)) - Build great metrics. Metrics show how the machine is working by providing numbers and setting off alert lights in a dashboard. ([View Highlight](https://read.readwise.io/read/01j8krebctbe2mfr8s32mzpd26))