Better's Blinkist

What’s in it for me? Learn the principles for building a successful business.

Understanding what’s most important in your company is, of course, a very personal matter that you have to figure out for yourself. But from a business standpoint, there are some values that just make sense, like being honest with your staff in order to create an environment of trust and transparency that will keep problems from festering. So let’s dive in and learn more of Ray Dalio’s secrets to success!

25 January, 2020 11:42 Share

Look to nature and evolution in order to keep your eye on the big picture.

This is why having a concrete set of guiding principles in your life is crucial. Like having a compass in a blizzard, being equipped with such principles means you’ll always know exactly where you’re headed and which choices will keep you on that path, no matter the circumstances. In short: having principles will provide you with fundamental truths that can be applied to any situation, allowing you to move toward your goals and the life you want to live.

25 January, 2020 11:44 Share

Think of nature. It’s sad to see a beautiful gazelle get eaten by a pack of vicious hyenas. But this is just a natural fact of life – part of the balanced ecosystem that has evolved over time. If you were to deny this reality and try to intervene, it would have dangerous repercussions. So remember that things will go wrong sometimes. And keep in mind that failure often provides a valuable chance to learn, adapt and evolve.

25 January, 2020 11:45 Share

Any business that’s been around for a long time has had to adapt to change and bounce back from hard times, which is what you’ll eventually have to do, too. Take the hard times in stride, and always keep learning and improving.

25 January, 2020 11:45 Share

It’s important to choose the right goal and to keep learning and improving.

Nearly anything is possible in life, but you can’t have it all. A common mistake is to reach for too many goals, all at once. But the truth is, whenever you choose one goal, you’re automatically ruling out a number of other goals in the process. So the smart thing is to choose wisely by looking within and identifying what you desire most.

25 January, 2020 11:46 Share

Once your goal is in place, the next step is to methodically examine the situation and identify any challenges or obstacles that are in your way. This is where being realistic is key. Don’t ignore problems because they’re too personal and don’t underestimate a potential issue by being overly optimistic.

25 January, 2020 11:47 Share

Radical truth and transparency are key to meaningful and long-lasting relationships at work.

Radical truth is about making sure that important issues don’t remain hidden, which means creating an environment where employees feel free to speak their mind. This kind of transparency is a safeguard against poor decisions, since coworkers will constantly be exchanging criticisms, making improvements and catching mistakes before they happen.

25 January, 2020 11:49 Share

Radical transparency is similar to radical truth. It means being open about the kind of behavior and work that management expects from employees, and vice versa. Managers and employees should treat one another as they would a partner in a long-term relationship. This means showing mutual respect, looking out for what’s in the other’s best interest and being crystal clear about who’s responsible for what.

25 January, 2020 11:49 Share

You’ll find that a workplace is at its best when employees show more consideration for their colleagues than they expect to be shown. Yes, this is a radical approach since most people might be used to cutthroat workplaces where everyone is only looking out for him- or herself. But you’ll find that productivity and quality will improve when employees drop the selfish behavior and start developing strong relationships based on generosity, cooperation and honest transparency.

25 January, 2020 11:50 Share

Radical truth extends to performance evaluations as well.

Being dishonest isn’t always a malicious act. Indeed, people are often most dishonest when attempting to be kind. Once, the author was considering promoting an employee to Department Head. He knew that many of this employee’s coworkers felt he deserved the job. However, when the author looked at the company’s performance tracking system, which contained hundreds of pieces of data on every employee, the evidence told a different story – the employee being considered for promotion simply didn’t have the right qualities for the job.

25 January, 2020 11:51 Share

And the truth is, you’ll be doing everyone a disservice by ignoring the evidence that the employee isn’t ready for the promotion. As most people overestimate their capabilities and the amount of work they do, performing accurate evaluations is essential to preventing problems

25 January, 2020 11:51 Share

But accuracy and honesty are not only good for the overall business; they’re also good for each employee. Psychologists believe the biggest motivator for personal improvement is the pain you feel after making a mistake. When you feel so terrible about having done something wrong that you never want to feel that way again, it’s called "hitting bottom" – and it’s often what a person needs to finally change his or her ways.

25 January, 2020 11:52 Share

sorting out an employee’s shortcomings is very time-consuming, so it should be given priority over celebrating success. When dealing with strengths, it’s a relatively simple matter of encouraging an employee to keep up the good work. For problems, the cause needs to be identified and solutions need to be worked out, all of which can take much more time and resources.

25 January, 2020 11:54 Share

Flowcharts and metrics are great tools for enhanced performance.

goal. For the author, his goal was to provide clients with the best possible return on their investments, and he often felt like a mechanic, popping open the hood to improve the engine of his Bridgewater machine. This analogy, of manager as mechanic and company as machine, is a great way to keep your mind focused on the responsibilities of the job and what needs to be repaired.

25 January, 2020 11:55 Share

Another great tool to check your machine for possible maintenance needs are metrics, or performance measurements. When you have a system in place to accurately measure performance, it’s like having a dashboard for your machine, complete with flashing lights to alert you the moment something goes wrong.

25 January, 2020 11:55 Share

With an accurate view of exactly what employees are doing, and how well they’re doing it, you’ll find that the job of supervision almost takes care of itself!

25 January, 2020 11:55 Share

Build organizations from the top down and keep an eye on manager-to-employee ratios.

As you move toward your goals, it’s only a matter of time before problems arise. But there’s no reason to panic or be deterred by these bumps in the road. Developing solutions for problems is how many companies improve. In other words, most problems will end up providing fuel for your machine. However, if you hope to turn problems into advantages, you need to design your business so that problems get noticed and solutions get implemented as quickly as possible.

25 January, 2020 11:56 Share

Every manager should be trustworthy and have high standards. If this isn’t the case, their weaknesses and poor performance will eventually spread to their staff. On the other hand, managers who show their appreciation for excellent work, and have strong oversight and strict quality control, will lead teams of employees who rise to their level of great performance.

25 January, 2020 11:56 Share

The ideal ratio is closer to five employees for every manager, as this will give your managers the best chance of having meaningful relationships and mutual understanding with each employee. But rather than setting strict rules on team sizes, you’ll get the best results by assessing each manager's capabilities and proceeding accordingly

25 January, 2020 11:57 Share