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How A Billionaire Hedge Fund Manager Steps Away

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  • How A Billionaire Hedge Fund Manager Steps Away

    Thought this was pretty cool, good lesson into developing business processes to step away as a "guru."

    Ray Dalio owns Bridgewater, a pretty large hedge fund. Pretty sure it's the largest ever.

    A major problem with funds is that they often rely on the talent of the head guy.

    However he's transitioning to a "mentor" role.

    The whole piece can be read here:

    It's behind a paywall but there are ways around that.

    Here are some key takeaways from his business processes.
    To help prepare for the future, Mr. Dalio has spent much of his time in recent years amassing an internal library of case studies known as “management principles training.”

    Employees are required to watch daily, 15-minute videos that often show situations where Bridgewater principles were tested, such as during disagreements and setbacks.

    Some videos ask if the subject of the case study should be fired. Employees are encouraged to log their reactions electronically, and the videos often end with a quiz that grades answers on adherence to the firm’s principles.

    At any given time, hundreds of Bridgewater employees are working on projects aimed at instilling the intense culture created by Mr. Dalio into every minute of the workday. Those employees also analyze data being collected constantly, including on iPads where workers use apps to rate each other on dozens of strengths and weaknesses.

    “Because all employees get to see what would be hidden in most companies, including all the bad stuff, and because they see the open debate, they know there’s no spin and they know that Bridgewater is a real idea-meritocracy. It’s great for the people who love it and is difficult for those don’t.”

    Only about 10 people have a full view of the hedge fund’s investment process. Mr. Dalio allows that group, which he calls a “circle of trust,” access to the information only if they agree to sign lifetime noncompete agreements, according to people familiar with the matter.

    Bridgewater Associates founder Ray Dalio’s worldview dominates world’s largest hedge fund, where employees are ‘Navy SEALs’ and ‘Dalai Lamas.’

  • #2
    Very interesting stuff.

    It's taken me years to get to where we're at with our culture and team. I feel we're in a good place but can always get better. It's a huge leap to move from running your own business from home to having employees. Then making them feel fulfilled, appreciated and also get them to produce.

    As a hard driving entrepreneur that has always worked 12-14 hours a day, because work is fun and not work for me,it took a long time for me to understand that not everyone was like me. I know this sounds weird but, as someone that that is a certain way and you grew up in a family of people that way you just expect everyone else to be that way as well. They're not. They don't have the same drive, goals or risk taking attributes instilled in them.

    So then you move to a point of just understanding that people are "not going to be good"... by the standards you hold yourself to. And for me at that point I gave up on most of the staff and just started to do stuff on my own. They became just helpers but didn't feel they could "create".

    This was long before we had training or operations inside of our company.

    Now with training and operations you find things are totally different and you can train and teach those people that truly want to learn. Finding people that are hungry and want to learn is helped by improving hiring processes. We originally started hiring people by just putting warm bodies in seats. How we have a 3 step interview process for multiple levels of interviewers inside of the company. We interview for things like logic, intelligence, ambition, cultural fit and more.

    Then you take these smart hungry people and train them and you wind up with an amazing company.

    I say all this because once I didn't see how training helped. Felt like people didn't care and didn't listen. That's very much changed. And stuff like this is awesome. Strategies for helping train.

    Jason Akatiff, CEO - A4D Performance | Follow Me on Twitter | Read my Blog
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