Page 359 - Ray Dalio - Principles

undermining the idea meritocracy. If you continue to fight the
idea meritocracy, you must go.

b. Never allow the idea meritocracy to slip into anarchy. In an idea
meritocracy, there is bound to be more disagreement than in a

typical organization, but when it’s taken to an extreme,
arguing and nitpicking can undermine the idea meritocracy’s
effectiveness. At Bridgewater, I have encountered some
people, especially junior people, who mistakenly think they
are entitled to argue about whatever they want and with
whomever they please. I have even seen people band together

to threaten the idea meritocracy, claiming that their right to do
so comes from the principles. They misunderstand my
principles and the boundaries within the organization. They
must abide by the rules of the system, which provide paths for
resolving disagreements, and they mustn’t threaten the system.

c. Don’t allow lynch mobs or mob rule. Part of the purpose of having a
believability-weighted system is to remove emotion from

decision making. Crowds get emotional and seek to grab
control. That must be prevented. While all individuals have the
right to have their own opinions, they do not have the right to
render verdicts.

6.5 Remember that if the idea
meritocracy comes into conflict

with the well-being of the

organization, it will inevitably

suffer.

That’s just a matter of practicality. As you know I believe that
what’s good must work well, and that having the organization
work well is of paramount importance.

a. Declare “martial law” only in rare or extreme circumstances when the
principles need to be suspended. 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.

For example, we encountered a time when there were leaks to