Ray Dalio Profile picture
Nov 2 8 tweets 2 min read
Having power is good because power will win out over agreements, rules, and laws all the time. #changingworldorder #principleoftheday (1/8)
When push comes to shove, those who have the power to either enforce their interpretation of the rules and laws or to overturn them will get what they want. (2/8)
It is important to respect power because it’s not smart to fight a war that one is going to lose... (3/8)
...it is preferable to negotiate the best settlement possible (that is unless one wants to be a martyr, which is usually for stupid ego reasons rather than for sensible strategic reasons). It is also important to use power wisely. (4/8)
Using power wisely doesn’t necessarily mean forcing others to give you what you want—i.e., bullying them. (5/8)
It includes the recognition that generosity and trust are powerful forces for producing win-win relationships, which are fabulously more re- warding than lose-lose relationships. (6/8)
In other words, it is often the case that using one’s “hard powers” is not the best path and that using one’s “soft powers” is preferable. (7/8)
For the complete picture of how things work and where we are, my book, Principles for Dealing with the Changing World Order, is available here amazon.com/Changing-World… (8/8)

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More from @RayDalio

Oct 19
If you don't mind being wrong on the way to being right you'll learn a lot--and increase your effectiveness. #principleoftheday (1/4) Image
But if you can't tolerate being wrong, you won't grow, you'll make yourself and everyone around you miserable, and your work environment will be marked by petty backbiting and malevolent barbs rather than by a healthy, honest search for truth. (2/4)
You must not let your need to be right be more important than your need to find out what's true. (3/4)
Read 4 tweets
Oct 19
Write Down Your Principles! The two most powerful practices that radically improved my life were meditation and writing down my principles. If you do these two things I guarantee you a much better life. (1/5)
Writing down your principles will lead you to 1) reflect on the best ways to handle the issues you face, 2) think at a higher, more principled level to make decisions like a ninja... (2/5)
3) systemize your decision-making criteria so they can be stress-tested and conveyed well to others, and 4) turn that into decision-making systems. (3/5)
Read 5 tweets
Oct 16
For example, most people will operate in a way that maximizes the amount of money they will get and that minimizes the amount of work they have to do to get it.
#principleoftheday (1/4)
To see this, just leave someone unsupervised and allow them to bill you for what they have done. Be especially wary of this conflict of interest when people are advising you on matters that will affect how much money they earn... (2/4)
...such as the lawyer who spends a lot of billable hours giving you advice, or the salesperson who advises you on what to purchase while receiving a commission on the amount that you spend. You can't imagine how many people I meet who are eager to "help" me. (3/4)
Read 4 tweets
Oct 15
When there were just a few of us, we had meaningful relationships because we knew and liked each other. When we grew to between fifty and a hundred people, we had a community... #principleoftheday (1/4)
...when we grew beyond that, the sense of community began to slip because we didn't all know each other in the same way. (2/4)
That's when I realized that having groups (departments) of around a hundred (give or take about fifty) that are bound collectively by our common mission was the best way to scale the meaningful relationship. (3/4)
Read 4 tweets
Oct 14
While it isn't all about the quid pro quo between the company and the employee, this balance must be economically viable for the relationships to be sustainable. #principleoftheday (1/5) Image
Set policies that clearly define this quid pro quo, and be measured, but not excessively precise, when shifting it around. (2/5)
While you should by and large stick to the arrangement, you should also recognize that there are rare, special times when employees will need a bit of extra time off and there are times that the company will require employees to give it extra hours. (3/5)
Read 5 tweets
Oct 13
The line is what's fair, appropriate, or required, as distinct from what's generous, in light of the defined quid pro quo relationship between parties. #principleoftheday (1/5)
As mentioned earlier, you should expect people to behave in a manner consistent with how people in high-quality, long-term relationships behave--with a high level of mutual consideration for each other's interests and a clear understanding of who is responsible for what. (2/5)
Each should operate on the far side of fair, by which I mean giving more consideration to others than you demand for yourself. (3/5)
Read 5 tweets

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