Where is your focus and where should it be?
Ray Dalio has built the world’s largest hedge fund and runs his organisation on a key set of principles such as “Radical Transparency“.
So where does Ray suggest leaders target their efforts for maximum impact?
Goals leading to Outcomes
The first recommendation from Ray is to focus on is the Goals of the team, department or organisation.
How are these set and what do goals look like for you?
Goals will vary depending on your leadership horizon but the goals will be directly linked to the Outcomes you get in return.
Poor goals, poor outcomes. Thinking about how you set goals and whether you inspire or command people would be a helpful aspect to your leadership reflection and developing a better understanding of your leadership style and impact.
Culture & People
In parallel with this, the next key areas of Leadership focus is also at the level of playing with the inputs that will influence the Outcomes.
Dalio advises making sure that people are clear on “How” you work, in other words the Culture. Working hand-in-hand with this he also suggests ensuring that you recruit the best People to deliver on your goals who can work in the way that you want to.
By focusing systemically on Goals, People & Culture and measuring and reflecting on Outcomes, Dalio states you will create a congruent and highly adaptable machine that stands a decent chance of achieving the Outcomes you want.
So what does this mean for you?
Are you focusing on tweaking the machine as it is in-flight or are you able to raise yourself to the strategic level and set your machine up for success?
Remember, these principles don’t only apply to the CEO. Nail these early and this pattern could set you up for success at any level.
Check out Ray Dalio’s TED Talk below.