... 158) The most common reasons managers fail to produce excellent results or escalate are ... 159) Avoid “Monday morning quarterbacking.” ... 160) Identify the principles that were violated. ... 161) Remember that if you have the same people doing the same things, you should expect the same results. ... 162) Use the following “drilldown” technique to gain an 80/20 understanding of a department or sub-department that is having problems.
50 Principles © 2011 Ray Dalio 163) Put Things in Perspective ... 164) Go back before going forward. a) Tool: Have all new employees listen to tapes of “the story” to bring them up to date. ... 165) Understand “above the line” and “below the line” thinking and how to navigate between the two. 166) Design Your Machine to Achieve Your Goals ... 167) Remember: You are designing a “machine” or system that will produce outcomes. a) A short-term goal probably won’t require you to build a machine. b) Beware of paying too much attention to what is coming at you and not enough attention to what your responsibilities are or how your machine should work to achieve your goals. ... 168) Don’t act before thinking. Take the time to come up with a game plan. ... 169) The organizational design you draw up should minimize problems and maximize capitalization on opportunities. ... 170) Put yourself in the “position of pain” for a while so that you gain a richer understanding of what you’re designing for. ... 171) Recognize that design is an iterative process; between a bad “now” and a good “then” is a “working through it” period. ... 172) Visualize alternative machines and their outcomes, and then choose. ... 173) Think about second- and third-order consequences as well as first-order consequences. ... 174) Most importantly, build the organization around goals rather than tasks. a) First come up with the best workflow design, sketch it out in an organizational chart, visualize how the parts interact, specify what qualities are required for each job, and, only after that is done, choose the right people to fill the jobs. b) Organize departments and sub-departments around the most logical groupings. c) Make departments as self-sufficient as possible so that they have control over the resources they need to achieve the goals. d) The efficiency of an organization decreases and the bureaucracy of an organization increases in direct relation to the increase in the number of people and/or the complexity of the organization. ... 175) Build your organization from the top down. a) Everyone must be overseen by a believable person who has high standards. b) The people at the top of each pyramid should have the skills and focus to manage their direct reports and a deep understanding of their jobs. c) The ratio of senior managers to junior managers and to the number of people who work two levels below should be limited, to preserve quality communication and mutual understanding.
- Fall '13
- 2007 singles, A Good Thing, Believe... There's Magic in the Stars, People For the American Way, Ray Dalio