Page 444 - Ray Dalio - Principles

case study pauses and asks them for their own thinking on the
matter at hand. In some cases, they input their reactions in real
time as they watch. Their thinking is recorded and compared

with others’ using expert systems that help us all understand
more about how we think. With this information, we can better
tailor their learning and their job assignments to their thinking
styles.

That is just one example of a number of tools and protocols
we have developed to help our people learn and operate by our
principles.

b. Use tools to collect data and process it into conclusions and actions.
Imagine that virtually everything important going on in your
company can be captured as data, and that you can build
algorithms to instruct the computer, as you would instruct a
person, to analyze that data and use it in the way you agreed it
should be used. In that way, you and the computer on your
behalf could look at each person and all the people together

and provide tailored guidance, just like your GPS provides you
guidance by knowing all the traffic patterns and routes. You
don’t have to make it mandatory to follow that guidance,
though you can. Generally speaking, the system operates like a
coach. And the coach can learn about its team: Data is
collected about what people do so that if they make more
insightful moves or less insightful moves, learning will occur

and be used to create improvements. Because the thinking
behind the algorithms is available to everyone, anyone can
assess the quality of the logic and its fairness, and have a hand
in shaping it.

c. Foster an environment of confidence and fairness by having clearly-stated
principles that are implemented in tools and protocols so that the conclusions
reached can be assessed by tracking the logic and data behind them. In all

organizations, it’s always the case that some of the people
judged to be ineffective will argue that those judgments are
wrong. When that happens, a data- and rules-based system
with clearly laid-out criteria allows less room for such
arguments and greater belief that the system is fair. Though the

system won’t be perfect, it is much less arbitrary—and can
much more easily be examined for bias—than the much less
specified and much less open decision making of individuals