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Ray Dalio On How To Run A Meeting & Other Business Tactics

Reading a book is easy. It’s much harder to take what’s in the book and incorporate it into our lives. I like to tackle this problem by distilling books down to a few tactics that I can implement quickly. 1

In a previous post, I outlined 4 ways that you can make better decisions using Ray Dalio’s life principles. In this post, I’ll outline what I think are the most impactful and actionable tactics from Dalio’s work principles.

Here they are:

1) How To Run A Meeting

“Meetings are an addictive, highly self-indulgent activity that corporations and other large organizations habitually engage in only because they cannot actually masturbate.” ― Dave Barry

Dalio often describes his organization as an intellectual version of the Navy Seals, and it’s clear from his Principles that like the military, he has an affinity for structure. So it shouldn’t be surprising that he thinks the most important part of running a meeting is to be clear about who is in charge and what the meeting is supposed to achieve:

Make it clear who is directing the meeting and whom it is meant to serve. Every meeting should be aimed at achieving someone’s goals; that person is the one responsible for meeting and deciding what they want to get out of it and how they will do so. Meetings without someone clearly responsible run a high risk of being directionless and unproductive

– Principles, Work Principle 4.4 – A

Dalio’s second Principle for running effective meetings is to assign someone to keep track of both responsibilities and the conversation flow. Said person ensures that any tasks to be done are assigned to specific people and not forgotten. They also ensure that the meeting doesn’t veer too far off topic.

Be careful not to lose personal responsibility via group decision making. Too often groups will make a decision to do something without assigning personal responsibilities, so it is not clear who is supposed to follow up by doing what. Be clear in assigning personal responsibilities.

– Principles, Work Principle 4.4 – H

Watch out for “topic slip.” Topic slip is random drifting from topic to topic without achieving completion on any of them. One way to avoid it is by tracking the conversation on a whiteboard so that everyone can see where you are. (Emphasis mine)

– Principles, Work Principle 4.4 – F

Applying Dalio’s tactics may make people feel uncomfortable at first, but in the long run, it will reduce peoples anxiety about meetings because they’ll know how they’re expected to behave and that their time won’t be wasted.

2) Use Standing Meetings

Our true priorities are defined by where we spend our resources, and that most often means where we spend our precious time. Too often though the distractions of daily business pull us along low-value tangents that take ours and others time away from where it would best spent. Dalio has found that the best way to avoid these distractions is to habituate your time allocations by setting standing meetings. For instance, if your company priority is sales, you should have a weekly sales meeting.

Use standing meetings to help your organization run like a swiss clock. Regularly scheduled meetings add to overall efficiency by enduring that important interactions and to-do’s aren’t overlooked, eliminating the need for efficient coordination, and improving operations (because repetition leads to refinement). It pays to have standardized meeting agendas that ask the same feedback questions in each meeting, (such as how effective the meeting was) and nonstandard meeting agendas that include things done infrequently (such as quarterly budget reviews).

– Principles, Work Principle 13.3 – D

3) Use Daily Updates To Stay In Sync

Use daily updates as a tool for staying on top of what your people are doing and thinking. I ask each person who reports to me to take about ten to fifteen minutes to write a brief description of what they did that day, the issues pertaining to them, and their reflections. By reading these updates and triangulating them, (i.e., seeing other people’s takes on what their doing together), I can gauge how they are working together, what their moods are, and which threads I should pull on.

-Principles, Work Principle 10.6 – C

Imagine if you woke up every morning instantly knowing what everyone in your company intended to work on that day and everyone else knew the same thing. Appealing, because of how incredibly efficient that might make everything, right? And, at the same time, kind of terrifying because you don’t want everyone looking over your shoulder judging what you intend to do every day.

The latter concern was why I first resisted using daily updates. I told myself, “I’m competent. I don’t need someone looking over my shoulder to do the right thing.” But now that I’ve been using it for a few months, I’ve come to see the value in it.

For me specifically, it’s as simple as sending my colleague a list of things I intend to work on each day. And in addition to it being a useful communication tool, it helps me organize my day and prioritize what I need to work on first. By contrast, my old habit of jumping into my email first-thing would lead me down a rabbit hole that didn’t necessarily reflect my priorities.

4) Use Process Flow Diagrams

Dalio’s ideal is a company that runs like a machine. At its core, a machine is a set of processes. Using process flow diagrams can help you visualize the different processes that make up your organization. These visuals help managers understand how resources will be allocated and interact with each other. But more importantly, they help ensure that everyone understands how the organization is expected to run and their role within it.

Understand that a great manager is essentially an organizational engineer. Great managers are not philosophers, entertainers, doers or artists. They are engineers. They see their organizations as machines and work assiduously to maintain and improve them. They create process flow diagrams to show how the machine works and to evaluate its design. They build metrics to light up how well each of the individual parts of the machine (most importantly, the people) and the machine as a whole are working. And they tinker constantly with its designs and its people to make both better.

– Principles, Work Principles, 10.1 – B

Process Flow Diagrams. Just as an engineer uses flowcharts to understand the workflow of what they’re designing, a manager needs a Process Flow Diagram to help visualize the organization as a machine. It might have references to an organizational chart that shows who reports to whom, or the org chart might supplement the Process Flow Diagram (PFD). Ideally the PFD is made in a way that allows you to both see things simply at a high level and drop down to low level. 

– Principles, Appendix

Since reading Principles, I’ve used process flow diagrams to visualize a number of personal and professional activities. I find that creating visual representations allows people to communicate more effectively about complex processes then they could otherwise.

Here’s an example of how process diagrams can help you visualize things. This was made using Lucid Chart:

 

 

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If you enjoyed this post, check out these other posts on Ray Dalio’s Principles:

Ray Dalio’s Principles – 4 Steps To Better Decisions

Ray Dalio’s Secret Sauce – The Truth Machine & The Good Life 

  1. The difference between tactics and strategy is strategy tells you what you should do, tactics tells you what to do. In other words, a strategy is the more general goal and tactics are the things you do to make that goal happen.


Built to Lie to You – Learning About Media Manipulation From Ryan Holiday

 

I like to think I’m skeptical but after reading Ryan Holiday’s media tell all, Trust Me I’m Lying, I realize I have not been skeptical enough. Ryan Holiday, the self-proclaimed media manipulator, has worked in public relations for the fashion brand American Apparel, as well as the bestselling authors Robert Greene, and Tucker Max. In Trust Me I’m Lying (TMIL), Holiday takes the reader through the mechanics of the modern media cycle and it’s ugly. But it’s also eye-opening; the best thing about Trust Me I’m Lying’s is how it has forced me to examine and reconsider many of my assumptions about the media. Here are a few of them.

Assumption 1 –  Blogs Have Standards like Newspapers  

I can say that before reading Holiday’s book I knew there was a difference between the New York Times and The New York Post and yet somehow when it came to the world of digital media everything sort of blurred together. To me, a story published Business Insider was pretty much the same as a story published in The Washington Post. More broadly, I was operating under the assumption that any sufficiently large media outlet was governed by some sort of overarching code of media ethics – something akin to the Hippocratic oath for media – a code that you have to follow if you want to respect yourself and be respected by others. And I was totally wrong.

New digital media aka blogs are not incentivized to care about standards. If they do publish something false, they can blame it on poor sourcing and issue a correction. As long as the story has generated page-views and thereby advertising revenue they’ve still come out ahead. As TMIL puts it:  

Blogs need things to cover. The Times has to fill a newspaper only once per day. A cable news channel has to fill twenty-four hours of programming 365 days a year. But blogs have to fill an infinite amount of space…

Assumption 2 – Newspapers Have Standards

More established media outlets like The New York Times and CNN may have more stringent sourcing standards but they also live and die by advertising dollars. Thus if a story is generating a lot of attention at lower level blogs, established media outlets will feel immense pressure to cover it as well.

This creates a kind of echo chamber effect whereby stories we get exposed to are not those that are important but those that resonate and reverberate through the medium of our modern media, which is, of course, the internet.

Even within publications, the burden of proof for the print version of a newspaper might differ drastically from what reporters need to go live with a blog post. As media outlets grapple with tighter deadlines and smaller staffs, many of the old standards for verification, confirmation and fact-checking are becoming impossible to maintain.

Assumption 3 – The Truth Will Out

I always thought there was a symmetry to the news; e.g. if a there was a big scandal, then discovering that the scandal was manufactured, bogus or just plain wrong would be equally newsworthy. As Dwight Schrute would say, this is False!

Bad behavior makes us talk, public shaming and gossip are things we love to share with others. On the other hand, finding out that we were wrong about something, that our outrage and condemnation were based on nothing more than hearsay, or outright media manipulation is not the kind of thing we’re dying to share on Facebook. The media knows this and adjusts their publishing accordingly.

The example Holiday uses is Toyota. You probably heard that Toyota was pounded by the media for supposedly selling cars that accelerated on their own. Toyota ended up recalling vehicles and settling with the Department of Justice to the tune of $1.2 billion.

What you probably never heard is that an investigation by NASA determined that there was no electronic malfunction that could have caused large unintended acceleration. And yet Toyota remains guilty even after being proven innocent because exoneration doesn’t get page views.

Assumption 4 – The Media Is Selective

It’s human instinct to associate popularity with importance. If you see someone looking up, you’ll naturally tilt your head skyward to see what’s going on. In the same way we also tend to assume that if a popular media outlet is publishing something it’s worth reading. Not so.

This is because one, blogs don’t care about what’s important, they care about what’s going to generate interest. Two, they have to almost zero marginal cost for each additional story they produce. So when marketers want to pitch or even write stories for these publications the blogs are more than happy to oblige. TMIL illustrates this almost ad nauseam but my favorite example concerns a memo on the subject from Business Insider to the world at large:

In April 2011, Business Insider editor Henry Blodget put out an advisory to the PR world. He was drowning in elaborate story pitches and information about new services. He just couldn’t read them all… So he proposed a solution: the publicists could write about the product launches of their own clients and Blodget’s site would edit and publish them. ‘In short’ he concluded, ‘Please stop sending us e-mails with story ideas and just contribute directly to Business Insider. You’ll get a lot more ink for yourself and for your clients and you’ll save yourself a lot of wasted work.’

While TMIL can at times feel repetitive, braggadocious, sensational and self-righteous, it’s more than compensated for by the fact that I’m sure I’ll never look at the media the same way again. In fact, reading TMIL has convinced me to go on a media diet, a diet I think I’ll actually stick to for a change.

 




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