What is “Idea Meritocracy”
First, we need to share more on who Ray Dalio is in case you don’t know him; he is the Founder and Co-Chief Investment Officer of Bridgewater Associates, which is a premier asset management firm. He started Bridgewater out of his two-bedroom apartment in New York City in 1975 and under his leadership, the firm has grown into the fifth most important private company in the US according to Fortune Magazine.
This is a recap of Ray Dalio’s article entitled The Key to Bridgewater’s Success: A Real Idea Meritocracy (a brief essay taken from his book called Principles: Life & Work). You can download the full PDF below.
When Dalio was asked what has made Bridgewater a success, his topline answer is:
The definition of idea meritocracy: An idea meritocracy, according to Dalio, is a decision-making system where the best ideas win out.
For anyone that read Dalio’s book Principles: Life & Work, it can fuel a lot of excitement around having an idea meritocracy, but rarely does it get executed in the same way that it was created within Bridgewater.
What Do You Need to Create Idea Meritocracy?
1. Everyone must put their honest thoughts on the table for everyone to see
2. All must partake in thoughtful disagreements where there are reasonable back-and-forths in which people evolve their thinking and come up with better decisions that they would individually
3. If disagreements remain, have agreed upon protocols that get people past them in idea-meritocratic ways
- Radical truthfulness: not filtering one’s thoughts and questions, especially about problems or weaknesses.
- Radical transparency: giving mostly everyone the ability to see mostly everything. This reduces the negative office political and other “closed door” behaviors. Having things in the open creates more trust.
We have found that, over time, being this way created a virtuous cycle that deepened our relationships, improved our work, and made us more successful.
Creating idea meritocracy in your organization starts with a commitment to choosing that you want to create a more open environment where people matter, their ideas matter, and you want people to have meaning for their work and in the community, you’re creating in the organization itself.
It also means that you must commit to honesty, being OK with disagreements and working through them, truthfulness, transparency, and creating framework where ideas can be assessed properly allowing your organization to make better decisions as a whole (rather than a few).
Would you rather be in an environment where the “best idea” is whatever the boss decides, or an environment where the best ideas win out, regardless of where they come from?
Download your free “The Key to Bridgewater’s Success: A Real Idea Meritocracy” PDF here
To learn more about Bridgewater Associates, click here.
This Article references: https://www.linkedin.com/pulse/key-bridgewaters-success-real-idea-meritocracy-ray-dalio/
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