Principles

Dalio argues that understanding how individuals think and behave differently can help people and organizations achieve goals. He insists that it is critical that organizations understand how people are “wired,” because such an understanding can lead to successful hiring and help avoid common management difficulties. Personal attributes are neither good nor bad in and of themselves. Instead, what matters is how they are used.

Concepts from neuroscience inform Dalio’s ideas, leading him to state that people “are genetically programmed” for “meaningful work and meaningful relationships” (215). However, there is a constant struggle between the conscious and subconscious mind, and between feelings and thoughts. Figuring out how to balance these forces is key to being successful. Psychometric tests can help identify an individual’s characteristics, like introversion versus extroversion, but their results should not be taken as absolute. Dalio recommends working on building habits to improve the aspects of a person that can be improved, but also recognizing and accepting what cannot be changed or rewired. Dalio praises leaders who are adept at getting people into roles that fit their personalities.

Dalio continues his consideration of how psychology factors into decision making by noting that emotions can get in the way. An ability to “synthesize” data to get an idea of a situation without emotional bias is helpful.