Ray Dalio Profile picture
Mar 1 10 tweets 2 min read
The process for choosing people should be systematically built out and evidence- based. #principleoftheday (1/10) Image
You need to have a people-hiring machine in which the goals are clearly stated so that the outcomes can be compared with them and the machine (the design and the people) producing the outcomes can evolve to improve. (2/10)
Organizations typically hire people by having job candidates' resumes reviewed by semi-random people based on semi-random criteria... (3/10)
...which leads them to invite in candidates to have semi-random groups of people ask the candidates semi-random questions and then make their choices of whom to offer jobs based on the consensus of how they liked them. (4/10)
You need to make sure that each one of those steps is done more systematically and purposefully. (5/10)
For example, you should think through what questions are asked and how the different answers candidates give differentiate them in the ways that you are seeking to differentiate them. (6/10)
You should also save all of those answers so you can learn about how indicative they might be of subsequent behaviors and performance. (7/10)
I do not mean that the human dimension or art of the hiring process should be eliminated--the personal values and esprit de corps part of a relationship are critically important and can't be fully measured by data. (8/10)
Sometimes the twinkle in the eye and the facial expressions are telling. (9/10)
However, even for those areas where people's subjective interpretations are important, you can still use data and a scientific approach to be more objective--for example, you can capture data to assess the track records of those making the interpretations. (10/10)

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More from @RayDalio

Feb 28
Values are the deep-seated beliefs that motivate behaviors and determine people's compatibilities with each other. People will fight for their values, and they are likely to fight with people who don't share them. (1/4) #principleoftheday
Abilities are ways of thinking and behaving. Some people are great learners and fast processors; others possess the ability to see things at a higher level. Some focus more on the particulars; still others think creatively or logically or with supreme organization. (2/4)
Skills are learned tools, such as being able to speak a foreign language or write computer code. (3/4)
Read 4 tweets
Feb 24
If they choose to have a primarily win-win cooperative-competitive relationship, they must take into consideration what is really important to the other and try to give it to them in exchange for them reciprocating. #changingworldorder #principleoftheday (1/6)
In that type of win-win relationship, they can have tough negotiations done with respect and consideration, competing like two friendly merchants at a bazaar or two friendly teams at the Olympics. (2/6)
If they choose to have a lose-lose mutually threatening relationship they will primarily think about how they can hurt the other in the hope of forcing the other into a position of fear in order to get what they want. (3/6)
Read 6 tweets
Feb 22
So long as you bear the consequences of failure, you are the ultimate Responsible Party. #principleoftheday (1/6)
For example, while you might choose to delegate the responsibility of figuring out how to handle your illness to a doctor, it is your responsibility to pick the right one, since you will bear the consequences if he does a bad job. (2/6)
Or if you were building a house, would you go to an architect and say "show me the kinds of houses I can build" or would you tell the architect what kind of house you want to live in? (3/6)
Read 6 tweets
Feb 17
Ultimately, power will rule. This is true of any system. #principleoftheday (1/5)
For example, it has repeatedly been shown that systems of government have only worked when those with the power value the principles behind the system more than they value their own personal objectives. (2/5)
When people have both enough power to undermine a system and a desire to get what they want that is greater than their desire to maintain the system, the system will fail. (3/5)
Read 5 tweets
Feb 15
While all these principles exist for the well-being of the community, there may come times when adhering to them could threaten the community's well-being. #principleoftheday (1/5)
For example, we encountered a time when there were leaks to the media of some things that we made radically transparent within Bridgewater. (2/5)
People at Bridgewater understood that our transparency about our weaknesses and mistakes was being used to present distorted and harmful pictures of Bridgewater, so we had to lessen our level of transparency until we resolved that problem. (3/5)
Read 5 tweets
Feb 11
You are expected to go to the higher level and look down on yourself and others as part of a system. (1/4)
In other words, you must get out of your own head, consider your views as just some among many, and look down on the full array of points of view to assess them in an idea-meritocratic way rather than just in your own possessive way. (2/4)
Seeing things from the higher level isn't just seeing other people's point of view; it's also being able to see every situation, yourself, and others in the situation as though you were looking down on them as an objective observer. (3/4)
Read 4 tweets

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