Page 372 - Ray Dalio - Principles

At a high level, we look for people who think independently,
argue open-mindedly and assertively, and above all else value the
intense pursuit of truth and excellence, and through it, the rapid
improvement of themselves and the organization. Because we
treat work as more than just what we do to make a living, we look
at every potential hire not just as an employee but as someone
we’d want share our lives with. We insist that the people we work
with are considerate and have a high sense of personal

accountability to do the difficult, right things. We look for people
with generous natures and high standards of fairness. Most
important, they must be able to put their egos aside and assess
themselves candidly.

Whether you choose to look for these same traits or others, the
most important thing you can do is understand that hiring is a
high-risk gamble that needs to be approached deliberately. A lot of
time, effort, and resources go into hiring and developing new
employees before it’s clear whether or not they are good fits.
Months or even years and countless dollars can be wasted in
training and retraining. Some of those costs are intangible,
including loss of morale and a gradual diminishment of standards
as people who aren’t excellent in their roles bump into each other;
other costs from bad outcomes can be measured all too easily in
dollars and cents. So whenever you think you are ready to make
someone an offer, think one last time about the important things
that might go wrong and what else you can do to better assess
those risks and raise your probability of being right.

8.1 Match the person to the design.

When building a “machine,” design precedes people because the
type of people you will need will depend on the design. As you
design, create a clear mental image of the attributes required for
each person to do their job well. It is futile to give responsibilities
to people who do not have the qualities required to succeed. It
frustrates, and inevitably angers, all parties, which is damaging to
the environment.

In order to match a person to the design, start by creating a spec
sheet so that there will be a consistent set of criteria that can be
applied from recruiting through performance reviews.