Principles: Life and Work

by Ray Dalio

In managing others, the analogy that comes to mind is a great orchestra. The person in charge is the shaper-conductor who doesn’t “do” (e.g., doesn’t play an instrument, though he or she knows a lot about instruments) as much as visualize the outcome and sees to it that each member of the orchestra helps achieve it. The conductor makes sure each member of the orchestra knows what he or she is good at and what they’re not good at, and what their responsibilities are. Each must not only perform at their personal best but work together so the orchestra becomes more than the sum of its parts. One of the conductor’s hardest and most thankless jobs is getting rid of people who consistently don’t play well individually or with others. Most importantly, the conductor ensures that the score is executed exactly as he or she hears it in his or her head. “The music needs to sound this way,” she says, and then she makes sure it does. “Bass players, bring out the structure. Here are the connections, here’s the spirit.” Each section of the orchestra has its own leaders—the concertmaster, the first chairs—who also help bring out the composer’s and the conductor’s visions.