With graduation looming in the distance, many upperclassmen are eagerly making plans to go through corporate recruiting, hoping to end up working for a finance or consulting firm after graduation. One specific firm that attracts many Dartmouth students year after year is Bridgewater Associates.
Ray Dalio, the founder of this largely successful hedge fund, will soon be profiled in The New Yorker ("Mastering the Machine," July 25). The article highlights Bridgewater's unique business model and "culture," which revolve around openness and truthfulness. Dalio believes in something called "radical transparency," in which everyone in the company, regardless of rank, is forthcoming with exactly what they are thinking. Along these lines, mistakes and weaknesses of each employee are openly acknowledged, studied and then improved upon a system that has seemingly been proven effective given the company's widespread success. On Bridgewater's website, a video shows Dalio asserting, "We won't let ego stand in the way of truth and improvement."
Upon first glance, it seems as though Bridgewater has torn down all the restraints of office politics and social etiquette, resulting in a productive and innovative company that is constantly changing for the better. However, I am skeptical that Bridgewater is as positive and constructive a company as it makes itself out to be. From what I have read, the "truth" at Bridgewater is given with absolutely no restraint. In one example given in The New Yorker, Dalio confronts an employee who has given an inadequate statement with, "Are you going to answer me knowledgeably or are you going to give me a guess?" He follows this by saying, "You have a tendency to do this ... We've talked about this before." While Bridgewater takes the stance that this "harsh truth" allows learning to take place, I think that this type of environment actually impedes improvement as it forces employees to be constantly on edge, for any small mistake will result in public humiliation.
Transparency of ideas and opinions can certainly be beneficial, especially in a company where collaboration is vital to success. However, it would seem that people should at least try to phrase opinions in a way that is not disrespectful or demeaning to others. While I assume that Bridgewater acknowledges good performance in addition to bad, I still think that consistently acknowledging fault through harsh and public criticism is damaging to the morale of the employees.
One could argue that employees at Bridgewater are self-confident enough to handle even the most berating attack on their performance. This aligns with another part of Dalio's philosophy he believes the best employees are those who see "things in a non-emotionally charged way." However, this line of thinking actually seems to contradict Bridgewater's culture of honesty, for a world devoid of emotion cannot be a world of true honesty. Emotion is a part of humanity that has been ingrained in us from the moment we were born.
While I am sure that many good ideas are born at Bridgewater, I don't think that this business model can ever fully reach the ideal that Dalio envisions. True innovation cannot come from emotional stagnancy, for the most original ideas are created using the imagination, which thrives on emotion. For this reason, I think a balanced business model that promotes creativity through an honest as well as a relaxed and respectful atmosphere is one that will surpass Bridgewater in reaching its full potential. While transparency in a company is undoubtedly beneficial, I think that more laidback companies like Google are ones that truly allow for originality and innovation to take place, as they make many of their employees feel comfortable enough to call their workplace their home.
Dalio believes that "the biggest problem that humanity faces is an ego sensitivity." I disagree. Sensitivity should not be scorned but embraced. It is emotion that provides the inspiration needed to achieve excellence. Many have long considered honesty a virtue, but compassion is one that is often neglected and shouldn't be. While Bridgewater has certainly done well so far, I think a company that is tolerant, respectful and transparent is one that has the potential to eventually outshine Bridgewater in both its innovation and its productivity.
