Page 411 - Ray Dalio - Principles

11.2 Design and oversee a machine to

perceive whether things are

good enough or not good

enough, or do it yourself.

This is usually done by having the right people—people who
will probe, who can’t stand inferior work or products, and who
can synthesize well—and by having good metrics.

a. Assign people the job of perceiving problems, give them time to investigate,
and make sure they have independent reporting lines so that they can convey
problems without any fear of recrimination.Without these things in
place, you can’t rely on people raising all the problems you
need to hear about.

b. Watch out for the “Frog in the Boiling Water Syndrome.” Apparently, if
you throw a frog into a pot of boiling water it will jump out

immediately, but if you put it in room-temperature water and
gradually bring it to a boil, it will stay in the pot until it dies.
Whether or not that’s true of frogs, I see something similar
happen to managers all the time. People have a strong
tendency to slowly get used to unacceptable things that would
shock them if they saw them with fresh eyes.

c. Beware of group-think: The fact that no one seems concerned doesn’t mean
nothing is wrong. If you see something that seems unacceptable to
you, don’t assume that the fact that others also know about it
and aren’t screaming means it’s not a problem. This is an easy
trap to fall into—and a deadly one. Whenever you see
badness, point it out to the Responsible Party and hold them
accountable for doing something about it. Never stop saying,
“This meal stinks!”

d. To perceive problems, compare how the outcomes are lining up with your
goals. This means comparing the outcomes that the machine is
producing to your visualization of the outcomes you expected
so that you can note any deviations. If you expect
improvement to be within a specific range . . .