Thoughtful Disagreement

Over the last year or so, I have studied Ray Dalio very closely. He is the CEO of Bridgewater Associates. the largest hedge fund in the U.S. I watch his interviews on CNBC, Bloomberg, and Yahoo Finance very closely,  replayed his TED talk on management several times , and have watched any YouTube entries with him in them going back a few years.

He is disarming for a multi-billionaire. In his TED talk, he shows a clip of himself as a guest on “Wall Street Week” in 1982. When the sound bite is over, he says “what an arrogant jerk I was.” Shortly after that, his business almost went under and he had to re-trench. Clearly, he has come back with a vengeance.

One thing that interests me is the way that he runs his enterprise. He encourages what he calls “thoughtful disagreement.” From 24 year old rookie to 62 year old veteran, everyone is allowed and encouraged to state their views even it meaning criticizing the boss. Having viewed an army of yes men and women for 45 years, it is truly something to see and think about. Clearly, he works with a group of uber-intelligent analysts who, after a few years, begin to have independent means. So, they can speak their mind and not have the money worries that many of us have experienced. So, I have often wondered how applicable his approach is to other companies or industries.

Over the years, I conducted hundreds of personnel reviews. Many people told me beforehand that they wanted “constructive criticism”. Maybe I always did it wrong, but whenever, I criticized  a staffer even mildly, people generally became defensive and some visibly angry. The same was true when discussing issues with most, but not all of the top management, I encountered. Some made it clear that it was “my way or the highway” while others said they welcomed dissent but rarely embraced it even when it was mild. So “thoughtful disagreement” rarely saw the light of day in my career.

The same thing is true of discussing politics. I do not think that I ever changed anyone’s mind on a political issue even when the discussion was civil. So, I  usually avoid such issues. Why waste one’s time?

Dalio said business ideas should be discussed in front of your team and undergo a “stress test.” If it passes the test, then you have a good chance of success. My caveat to that is that everyone has to be honest in the discussion and pretty well informed on the issues. It has been rare, in my experience, to see both variables, honesty and well informed, present among all or even many members of the group. On a personal basis, I like to read outside my comfort or belief zone and put my ideas through stress tests all the time. Generally, they hold up pretty well but I have noticed my views on certain issues moderating a bit in recent years.

So, consider this. Bridgewater, led by Dalio, is the largest hedge fund among many. Clearly, they are doing more than a little right.  Do you encourage “thoughtful disagreement” among your team? Would they do it if you tried?

In advertising and marketing, things are changing faster than ever. All of us, if honest, know that we are having a difficult time staying on top of media changes that seem as if they are happening daily. You need to test a lot of little things on new platforms knowing that most will fail. The spirit of an entrepreneur is needed even if you are with a global brand powerhouse. The tiny failures will not even be a financial rounding error to a giant firm. You realize that you cannot stand still. Thoughtful disagreement and lively stress tests might be a great tool  going forward.

If you would like to contact Don Cole directly, you may reach him at doncolemedia@gmail.com or leave a message on the blog.