Principles are ways of successfully dealing with reality to get what you want out of life.
Ray Dalio, one of the world’s most successful investors and entrepreneurs, cites principles as his key to success.
In 1975, Ray Dalio founded Bridgewater Associates, out of his two-bedroom apartment in New York City. Over forty years later, Bridgewater has grown into the largest hedge fund in the world and the fifth most important private company in the United States (according to Fortune magazine), and Dalio himself has been named to TIME’s list of the 100 most influential people in the world. Along the way Dalio discovered unique principles that have led to his and Bridgewater’s unique success. It is these principles, and not anything special about Dalio, that he believes are the reason behind whatever success he has had. He is now at a stage in his life that he wants to pass these principles along to others for them to judge for themselves and to do whatever they want with them.
Life Principle
Focus on the "what is" before deciding "what to do about it."
It is a common mistake to move in a nanosecond from identifying a tough problem to proposing a solution for it. Strategic thinking requires both diagnosis and design. A good diagnosis typically takes between fifteen minutes and an hour, depending on how well it's done and how complex the issue is. It involves speaking with the relevant people and looking at the evidence together to determine the root causes. Like principles, root causes manifest themselves over and over again in seemingly different situations. Finding them and dealing with them pays dividends again and again.
RECENT USER EXCHANGES
Focusing on the principle of understanding “what is” before deciding “what to do about it,” are you saying there’s wisdom in the pause? I’ve often been curious about the oft‑repeated idea that the most successful people make rapid decisions and never make the same mistake twice—and I’m wondering how that squares with this principle.
Most people spend so much time doing and so little time reflecting on what they should be doing, how they should be doing it, and why they want to do it. So, it is wise to pause to make these reflections and, after you have those answers, go back to doing in a more thoughtful way.
If the principle is to focus on what is before deciding what to do about it, what process can one put in place to avoid jumping straight into solution mode when a problem is identified—especially when the business demands an immediate solution, even if I understand root cause analysis?
When the business identifies a problem and requires a solution, immediately clarify the situation and triangulate well with the most believable people you know. Think about how much time you really have remembering that going slowly (which might be just a few hours) to have a well thought out and well triangulated response is most important. Remember that decision making is a two step process - first taking in well to consider the alternatives and then deciding.
Life Principle
- Use the 5-Step Process to Get What You Want Out of Life
- Diagnose problems to get at their root causes.
- Focus on the "what is" before deciding "what to do about it."
- Diagnose problems to get at their root causes.
Any person or organization can adopt Principles to better achieve their goals.
Learn what Principles are and how they are applied at Principles.com
