Page 373 - Ray Dalio - Principles

Bridgewater’s spec sheets use the same bank of qualities as our
Baseball Cards.

Don’t design jobs to fit people; over time, this almost always
turns out to be a mistake. This often happens when someone you
are reluctant to let go doesn’t work out, and there is an inclination
to try to find out what else that person can do. Frequently
managers fail to be objective about their own strengths and
weaknesses, and put themselves into roles that they’re not a click
for.

a. Think through which values, abilities, and skills you are looking for (in that
order). 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. 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. Skills are learned tools,
such as being able to speak a foreign language or write computer
code. While values and abilities are unlikely to change much,
most skills can be acquired in a limited amount of time (e.g.,
software proficiency can be learned) and often change in worth
(today’s most in-demand programming language is likely to be
obsolete in a few years).

It is important for you to know what mix of qualities is impor-
tant to fit each role and, more broadly, what values and abilities
are required in people with whom you can have successful
relationships. In picking people for long-term relationships, values
are most important, abilities come next, and skills are the least
important. Yet most people make the mistake of choosing skills
and abilities first and overlooking values. We value people most
who have what I call the three C’s: character, common sense, and

creativity.
If your people are bound by a sense of community and mission
and they are capable, you will have an extraordinary organization.
Some people will value the mission and community and others

won’t. Since at Bridgewater the key shared values that maintain
our culture are meaningful work and meaningful relationships,
radical truth and radical transparency, an open-minded willingness
to explore harsh realities including one’s own weaknesses, a sense