In a previous post, I described Ray Dalio’s Truth Machine and formula for a good life. For those who haven’t read it, “Truth Machine” is my term for the core process Dalio has used to become a billionaire investor and achieve everything else he has in life.
One drawback to Dalio’s process is that it involves multiple steps and coordination. Such complexity makes it tempting to dismiss it as a method that’s only suitable for sophisticated organizations. I think that’s a mistake.
In the interest of making the process actionable for regular humans like you and me, here are four things you can do today to help implement Dalio’s process in your own lives:
1) CREATE AN ADVISORY BOARD
For most of us – myself included – critical feedback even with the best of intentions, often feels like criticism. We have a natural tendency to dislike people who criticize us and because other people want to be liked, they often refrain from giving us the kind of feedback we need. Thus we have dynamic where people don’t like getting critical feedback and people don’t want to give it. As a result, we often have situations where we don’t get good outside input when we should.
This dynamic is similar to the problem people face when it comes to exercise: e.g. because we don’t exercise, we have no energy, and because we have no energy, we don’t feel like exercising. And as in the case of exercise, the best way to break the cycle is to create a habit or ritual out of the thing we’d rather not do.
To make a habit of critical feedback, I suggest creating an advisory board. Write down the names of at least two other people whose opinions you value. You don’t have to tell them their new roles, just schedule recurring discussions with these people at least once every three months. Buy them coffee and ask them for their unfiltered opinions when it comes to your most important decisions.
But remember, most people won’t automatically give you the kind of honest feedback you’re looking for. You have to ask for honest feedback and demonstrate that you’ll accept it as a way of improving yourself and your decisions. Don’t make people regret being honest with you.
2) USE PERSONALITY ASSESSMENTS
“You must not fool yourself, and you are the easiest person to fool.” – Richard Feynman
A core principle of Dalio’s process for getting what you want out of life is that you must know yourself. But because our egos make it difficult see ourselves objectively this is much easier said than done. To paraphrase the great Richard Feynman, you must know yourself, and you are the hardest person to know.
Personality assessments are the best tool Dalio has found for building a base of self-knowledge. These tests are useful because they take the conversation about how we are out of own heads and into a space of more objective measures. Dalio has had himself, his family, and every employee at his firm take multiple assessments to help them better understand themselves and one another.
Start by taking one of the following three tests that Dalio has his employees take.
Myers Briggs Type Indicator
Link: https://www.mbtionline.com/TaketheMBTI
Cost: $50
Time: 15 minutes
Workplace Personality Inventory – II
Link: https://us.talentlens.com/workplace-personality-inventory-ii
Cost: $24-$28
Time: 30 minutes
Team Dimensions Online
Link: https://www.discprofile.com/products/team-dimensions-profile/
Cost: $39.95
Time: Unknown
Once you’ve completed an assessment, examine your results and see how they match up with your self-image and personal track-record. Then consider asking trusted friends or colleagues if they think your results paint an accurate picture of you.
3) FOCUS ON CONSEQUENCES NOT DIFFICULTY
For most problems, we decide whether we need help based primarily on how difficult it feels to determine the right answer. Instead, we should use how important it is to make the right decision as the test of whether we seek other people’s input.
Really bad outcomes are likely to happen not because the decision was hard, but because we were overconfident about an important decision that seemed easy. Shifting the focus from how hard the decision feels to how important it is to get right can help us determine when to call in reinforcements and ultimately make better decisions.
Even when a very important decision feels like a no-brainer, it’s worthwhile to ask for help.
4) BEGIN A MEDITATION PRACTICE
When Ray Dalio was in his 20’s, he punched his boss in the face on New Year’s Eve and was subsequently fired. Clearly, emotional self-control was not his strength then. And yet today the ability to rise above our emotional selves is an integral part of Dalio’s process. For his transformation from brawler to master truth seeker, Dalio credits his practice of transcendental meditation.
Meditation is complementary to Dalio’s process because it is fundamentally self-awareness training. By resting our attention on an unstimulating rhythm like the breathing or chanting a meaningless word, we can observe how subconscious thoughts arise and create emotional experiences. Through practice we learn to recognize and separate our attention from the emotional pull of our thoughts. That separation allows for better focus on the quality of our ideas and more open-minded dialogue with others.
Following Dalio’s example and beginning a meditation practice is something anyone can do to set the stage for better decision making. Having said that, although meditation can seem as easy as sitting on a pillow, developing a practice takes time. Below I’ve listed some helpful resources for taking the first steps to beginning a meditation practice:
Oak Meditation (Free)
Link: https://itunes.apple.com/us/app/oak-meditation-breathing/id1210209691?mt=8
Headspace (Paid)
Link: https://www.headspace.com/headspace-meditation-app
MUSE Meditation Brainwave Detector (Paid)1
Link: http://www.choosemuse.com/
Transcendental Meditation (Paid)
Link: https://www.tm.org/
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I hope to have a post reviewing this item soon ↩
