Page 76 - Ray Dalio - Principles

would be with each other and my reflections on how we
should handle every situation that came up. Since most types
of situations arose repeatedly with slight variations, these

principles were continually refined. As for our agreements
with each other, the most important one was our need to do
three things:

1. Put our honest thoughts out on the table,

2. Have thoughtful disagreements in which people are
willing to shift their opinions as they learn, and

3. Have agreed-upon ways of deciding (e.g., voting, having
clear authorities) if disagreements remain so that we can

move beyond them without resentments.

I believe that for any organization or for any relationship to
be great, these things are required. I also believe that for a
group decision-making system to be effective, the people
using it have to believe that it’s fair.

Having our work principles written out and getting in sync
about them in the same way we had with our investment
principles were essential for our understanding each other,

especially since our unique way of operating—this radical
truth and radical transparency—that led to our unique results is
counterintuitive and emotionally challenging for some.

Trying to understand how we could get our meaningful
work and meaningful relationships through this
straightforwardness led me to speak with neuroscientists,

psychologists, and educators over the decades that followed. I
learned a lot, which I can summarize as follows. There are two
parts of each person’s brain: the upper-level logical part and
the lower-level emotional part. I call these the “two yous.”
They fight for control of each person. How that conflict is
managed is the most important driver of our behaviors. That

fighting was the biggest reason for the problems Bob, Giselle,
and Dan raised. While the logical part of people’s brains could
easily understand that knowing one’s weaknesses is a good
thing (because it’s the first step toward getting around them),
the emotional part typically hates it.