In Adam Grant’s fantastic (like, “beyond-words fantastic”) new book, Originals: How Non-Conformists Move The World, Chapter 7 includes the story of Ray Dalio, billionaire founder of the venerable investment firm, Bridgewater Associates.
I was excited to see that. In one of my books I quoted Mr. Dalio, as much a philosopher as a successful business person, as saying, “I believe that the biggest problem that humanity faces is an ego sensitivity to finding out whether one is right or wrong, and identifying what one’s strengths and weakness are.”
Love that saying because ego, a main driver of our emotions, can cause significant damage when it controls its human host.
And, it so often does. No, it’s not just about hurt feelings and bad business decisions. Out of control egos have resulted in catastrophies such as wars, evil dictators, and masses of people unnecessarily struggling for survival; events taking place even today.
On the other hand, when controlled and properly directed the results can be, well, a company like his.
Dr. Grant describes Bridgwater as “a highly cohesive, close-knit community, to the point that its staff frequently call it a family, and it’s common for employees to stay for decades.”
They also promote dissent. Respectful dissent, of course. But, dissent. Groupthink is discouraged in every way. If someone is off course with their actions, people are expected to communicate that to the person directly…including calling out Ray Dalio himself!
The author shared an email that Mr. Dalio received that at practically any other company would most likely have resulted in a firing. He welcomed it. The sender of the email was correct. And the founder, the company, and its investors benefitted.
Of course, there is much more to the art of positive dissent than just this (and, a lot more to Mr. Dalio’s leadership philosophy, outlined in over 200 principles he personally wrote — a highly-recommended read!). Dr. Grant’s thorough research and entertaining way of presenting the information leaves the reader with an understanding that when done correctly, dissent leads to constant innovation and growth based on superb original ideas.
What made this even more enlightening, though, was the comparison the author made with another company; one that had been amongst the most respected and highly-profitable (and innovative) companies in the world…before groupthink and discouraging dissent became it’s cultural nature. (Prepare to shake your head in disgust when reading that part.)
So, is Ray Dalio’s methodology, including putting his ego aside and — not just allowing, but — insisting on honest feedback just feel-goody fluff? Or, does it have an outcome on their bottom line? In other words, does it translate into business success?
Well, in what is a very volatile industry, the company’s two major funds have performed amazingly well, and consistently for over 30 years.
As Dr. Grant writes, “They’ve been recognized for making more money for clients than any hedge fund in the history of the industry. In 2010, {their} returns exceeded the combined profits of Google, eBay, Yahoo, and Amazon.
Yes, I’d say it’s a positive thing. And, very original.
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To order Dr. Adam Grant’s book, Originals: How Non-Conformists Move The World, click here.
John David Mann’s and my new book, The Go-Giver Leader will be released on March 29th. Click here to read an excerpt or sample chapter, or click here to pre-order. If you enjoyed The Go-Giver I think you’re really going to like this one. For bulk orders for your company or organization click here.
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Fantastic article Bob! I’m so grateful to learn from Ray! How blessed are we to live in a time where we can learn from a great man like Ray, giving us the shortcuts it took him a lifetime to learn and master! Bridgewater is a stellar company and we are lucky to have it available! Thanks for sharing Bob Burg!!!
I can’t wait for my New Go Giver Leader book to arrive!!!!!! I hope I can get my hands on it before I fly to St Lucia for our sold out event….I want to read it on the beach!!!!
Stacey, thank you. So glad to know you enjoyed the post. Indeed, Ray is one of my heroes! I hope everyone reads his Principles. It’s right there for everyone to benefit from. Amazing! And, Adam Grant’s book is…well, it’s from Adam so by default it’s brilliant. I hope you enjy The Go-Gier Leader. I look forward to your feedback. Enjoy your event in St. Lucia. I love the work you do, my friend! {Be sure and visit Stacey and Paul at http://relationshipdevelopment.org/}
I’m a BLANK SHEET thinker. I like to absorb culture and history and then throw it out and start anew.
That makes me an outlier.
Promoting dissent appears to me as a more normal way to run a business.
Warren, thank you. I always appreciate you joining the discussion!
Bob,
Another terrific posting. I am definitely going to order the book, another one to add to the list. I love the quote. “I believe that the biggest problem that humanity faces is an ego sensitivity to finding out whether one is right or wrong, and identifying what one’s strengths and weakness are.”
Many of us allow our “ego” to get in the way of our own success. When we open ourselves up to receive feedback and show our vunerability as a leader, then we decrease the chances of our “ego” getting in the way. This approach reminds me of how many successful sports teams operate. They create a culture where each player and the coaching team can give each other feedback. This allows them to create their own culture of excellence and accountability.
Thanks for sharing Bob.
Pete, thank you, and great point. So glad to know you enjoyed the post. And, yes, Adam Grant’s new book is spectacular. I know you’ll love it. And, Mr. Dalio’s “Principles” that I linked to are worth studying as though one’s life success depends on it! 🙂