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Ray Dalio is known to be a billionaire and the founder of the biggest hedge fund in the world. Dalio is an exceptionally successful person with lots of great insight to offer, that is why he wrote a Principles. Alongside various topics, Dalio also talks about how he improves his company in the book.
According to Dalio, a leader should always be training, testing, evaluating, and sorting people to improve the company. Dalio views companies as machines and in order to constantly improve the machine you must be:
- Training your employees.
- Testing their abilities.
- Evaluating them
- And sorting them
“Both your people and your design must evolve for your machine to be improved. When you get personal evolution right, the return is exponential. As people get better and better, they are able to think more independently, probe, and help you refine your machine. The faster they evolve the faster your outcomes will improve.
Your part as an employer starts with frank assessments on their strengths and weaknesses, followed by a plan for how their weaknesses can be mitigated either through training or by sending them to another job that taps into their strengths and preferences.” – Principles by Ray Dalio (Page: 440)
As an employer you should also consider the following: If someone is doing their job poorly, consider whether it is due to inadequate learning or inadequate ability. This will help you diagnose mistakes and prevent any further mistakes.
Book: Principles by Ray Dalio (Purchase on Amazon)