Page 452 - Ray Dalio - Principles

subordinate to the CEOs. The challenge of having two or three
people is for them to dance well together. If they can’t do that,
and coordinate well with the chairmen, they have to notify the

executive chairman or chairmen so changes can be made.

For the same reason we have more than one CEO
overseeing management of the company, we have more than
one chief investment officer (there are currently three).

16.3 No governance system of

principles, rules, and checks

and balances can substitute for

a great partnership.

All these principles, rules, and checks and balances won’t be
worth much if you don’t have capable people in positions of

power who instinctually want to operate for the good of the
community based on the agreed-upon principles. A company’s
leaders must have wisdom, competence, and the ability to have
close, cooperative, and effective working relationships
characterized by both thoughtful disagreement and
commitment to following through with whatever the idea-
meritocratic process decides.