Question

According to Ray Dalio"To build a company where the best ideas win."What if you knew what your coworkers really thought about you and what they were really like? Ray Dalio makes the business case for using radical transparency and algorithmic decision-making to create an idea meritocracy where people can speak up and say what they really think -- even calling out the boss is fair game. These strategies helped Dalio create one of the world's most successful hedge funds and how you might harness the power of data-driven group decision-making.""

(IN YOUR WORDS) What did Ray Dalio lecture add to your general experience? (Mention some new information that you learned about)

Answer 1

Radical transparency and algorithmic decision-making is a mind blowing idea that can change our human lives. That's because it's now easy to take algorithms and embed them into computers and gather all that data that we're leaving on ourself all over the place, and know what you're like, and then direct the computers to interact with you in ways that are better than most people can.

Radical Transparency = Audacity * Humility
Tha “value” of a Radical Transparency “score”, to me, would be powered partly by being audaciously, radically transparent, but the real power comes with humility, by removing ego from the equation.
Research has found that transparency increases customers’ perceptions of the value of a good or service, their satisfaction of it, and their willingness to pay, irrespective of its quality. For example, when travel websites provide a visual representation of the search effort being exerted on a customer’s behalf (such as posting the number of travel sites the algorithm is searching, enumerating how many results are found, and creating a visual image of “scrolling”), customers report higher perceptions of service value. Other research has discovered that businesses that are the most transparent in the way they report results also achieve higher performance.
Algorithmic or automated decision systems use data and statistical analyses to classify people for the purpose of assessing their eligibility for a benefit or penalty. Such systems have been traditionally used for credit decisions, and currently are widely used for employment screening, insurance eligibility, and marketing. They are also used in the public sector, including for the delivery of government services, and in criminal justice sentencing and probation decisions.
The objective has been to have meaningful work and meaningful relationships with the people in the workplace which can be made fruitful through radical transparency and that algorithmic decision-making. Rather than thinking, "I'm right," appreciating to think "How do I know I'm right?" will balance the audacity of employees.Now there is a need for smartest people who would disagree with others to understand their perspective or to have them stress test others perspective. It will create the idea meritocracy. In other words, not an autocracy exist and others would follow and not a democracy in which everybody's points of view were equally valued, but it is needed to have an idea meritocracy in which the best ideas would win out. And in order to do that, we would need radical truthfulness and radical transparency.

Radical truthfulness and radical transparency is people needed to say what they really believed and to see everything. And we literally tape almost all conversations and let everybody see everything, because if we didn't do that, we couldn't really have an idea meritocracy. In order to have an idea meritocracy, we have let people speak and say what they want. When we are operating on radical transparency,we collect principles , largely from making mistakes, and then embedding those principles into algorithms. And then we're following the algorithms in parallel with our thinking. That is how we've run the investment business, and it's how to deal with the people management. Different people are always going to have different opinions. And who knows who's right? Some people thought I did well, others, poorly. With each of these views, we can explore the thinking behind the numbers.Everyone gets to express their thinking, including their critical thinking, regardless of their position in the company.

This tool helps people both express their opinions and then separate themselves from their opinions to see things from a higher level. When emloyees shift their attentions from inputting their own opinions to looking down on the whole screen, their perspective changes. They see their own opinions as just one of many and naturally start asking themselves, "How do I know my opinion is right?" That shift in perspective is like going from seeing in one dimension to seeing in multiple dimensions. And it shifts the conversation from arguing over our opinions to figuring out objective criteria for determining which opinions are best.So what's the problem with being radically truthful and radically transparent with each other? People say it's emotionally difficult. Critics say it's a formula for a brutal work environment. Neuroscientists tell it has to do with how are brains are prewired. There's a part of our brain that would like to know our mistakes and like to look at our weaknesses so we could do better. That's the prefrontal cortex. And then there's a part of our brain which views all of this as attacks. In other words, there are two you's inside you: there's an emotional you and there's an intellectual you, and often they're at odds, and often they work against you. It's been our experience that we can win this battle. We win it as a group.
There's should be an idea meritocracy where people can speak up..That we can have algorithms that will help us to gather all of that information and even help you make decisions in an idea-meritocratic way.