Ray Dalio's first principle is all about the state of mind you choose to develop, which translates into the way you approach reality. You can either try to avoid the harsh realities of life or you can face them openly and honestly for what they are (1.1, 1.2). Each person has to figure out the truth on their own – and the best way to fast-track that process is to be radically open-minded and radically transparent (1.3).
Avoiding reality is counter-productive. Constantly avoiding or disguising your own weaknesses will never allow you to transcend them. Being completely open and transparent gives you the freedom to truly be yourself and simultaneously opens the channels of understanding between you and other people. Once you've mastered it, you no longer see failure as a personal insult.
Success is not really a matter of working harder, but rather, it's about working more effectively in line with reality.
Successful people learn from their mistakes. Creating a culture of success means embracing the fact that mistakes are natural and that failing well and learning from the failure are better than hiding your mistakes. Mistakes are painful, but shielding yourself or others from that pain is not the same as being kind or compassionate.
To make it work in practical business situations, everyone involved needs to remain calm and respectful of the process. People need to learn to get in sync with each other and how to disagree well. It's an art, and it takes practice.
Simply letting everyone offer their opinions and randomly disagree with each other is a waste of time. “The best decisions are made by an idea meritocracy with believability-weighted decision making, in which the most capable people work through their disagreements with other capable people who have thought independently about what is true and what to do about it.”
The best decisions are made by an idea meritocracy with believability-weighted decision making, in which the most capable people work through their disagreements with other capable people who have thought independently about what is true and what to do about it.