“Rather than thinking you’re right, ask yourself, how do you know you’re right?” These are the sentiments of Ray Dalio, founder of Bridgewater Associates, the largest hedge fund in the world, during his recent TED Talk on enhancing decision making. Dalio believes that one of the greatest tragedies of mankind is that people arrogantly and naively hold onto opinions that are incorrect, and act on those views without any verification process. His tactics may be too radical for some, but the principles his company is applying every day to create an idea meritocracy could help any business or individual reach better outcomes. The approach is based on truthfulness and transparency. Find the smartest people who may disagree with you and do your best to fully understand their perspectives. The ability to see things collectively above one’s self leads to much more effective decision making. Rather than arguing over opinions, shift the conversation to figuring out objective criteria for determining which opinions are the best. Then embrace the mistakes and collect what you’ve learned to create your ultimate code for making decisions.
See the full Ted Talk here: