Page 419 - Ray Dalio - Principles

• Importantly, ask yourself this question: If X attribute is
done well next time, will the bad outcome still occur?
This is a good way of making sure you are logically

connecting the outcome back to the case. Think of it this
way: If your mechanic replaced that part in your car,
would that fix it?

• If the root cause is a faulty design, don’t stop there. Ask
who was responsible for the faulty design and whether
they are capable of designing well.

Is the root cause a pattern? (Yes or no.) Any problem can be a one-
off imperfection—or it could be a symptom of a root cause

that will show up repeatedly. You need to determine which it
is. In other words, if Harry failed to do the assignment due to
reliability:

• Does Harry have a reliability problem in general?

• If so, is reliability required for the role?

• Is Harry’s failure due to training or abilities?

How should the people/machines evolve as a result? Confirm that the

short-term resolution of the issue has been addressed, as
needed. Determine the steps to be taken for long-term
solutions and who is responsible for those steps. Specifically:

• Are there responsibilities that need to be assigned or
clarified?

• Are there machine designs that need to be reworked?

• Are there people whose fit for their roles needs to be
reevaluated?

For example, if you’ve determined that 1) it’s a pattern, 2)

the RP is missing an attribute that’s required for the role, and
3) the attribute is missing due to the RP’s ability (not their
training)—then you’ve likely been able to determine the
answer to your most important question: the person is not
capable and needs to be sorted from the role.

The following principles further flesh out how to diagnose
well.