Bridgewater Associates, which was founded by Ray Dalio in 1975, is the largest hedge fund in the world, managing almost $160 billion. Its size and success are not the only interesting thing about the company. Another is Dalio’s philosophy of “radical transparency,” a topic he discusses in his new book, Principles. He brought the idea into the company in 1993, after three of his top confidants told him in a memo that he was hurting the firm by being too honest. To resolve the issue, Dalio started meeting with his employees individually to discuss how to treat one another. His goal? To create a culture where employees could engage in “thoughtful disagreement” and exchange ideas without creating lasting conflict, even when the ideas were controversial.
Radical Transparency Can Reduce Bias — but Only If It’s Done Right
Bridgewater Associates is the largest hedge fund in the world, managing almost $160 billion. Its size and success are not the only interesting thing about the company. Another is founder Ray Dalio’s philosophy of “radical transparency.” He brought the idea into the company in 1993, after three of his top confidants told him in a memo that he was hurting the firm by being too honest. To resolve the issue, Dalio started to meet with his employees individually to discuss how to treat one another. His goal? To create a culture where employees could engage in “thoughtful disagreement” and exchange ideas without creating lasting conflict, even when the ideas were controversial. Research shows the approach works but can be challenging to implement.