Live from Somewhere Over the Great Basin: John Gapper: Bridgewater and ‘Radical Transparency’: "The fact that [Dalio's] method of running his firm seems so weird...

...reflects badly on the dishonesty and obfuscation that passes for ‘human resource management’ elsewhere. Everyone knows that workplace communication is often strained and insincere. As Mr Dalio complains, executives discuss their dissatisfaction with an employee behind closed doors, then call in the unfortunate and ‘give him some lousy spin’ that is demoralising yet imprecise. Despite the fashion for ‘360-degree appraisals’ and team working, the truth gets disguised. Mr Dalio will not tolerate this. Everyone at Bridgewater is told to say exactly the same thing to everyone, especially when they disagree. If there is any tension, they have to ‘get in sync’ by hashing it out openly--one motto in his 123-page Principles is that ‘thoughtful disagreement radically improves understanding’.... There are iPad apps on which to record feelings of pain or frustration, or mark instant reactions to a colleague’s words or deeds.... Tapes are being catalogued so that anyone can locate anything that someone has said about them. Bridgewater is becoming a giant behavioural database.

It is very intriguing but I have three doubts. First, like other pseudoscientific theories it attempts to treat humans like machines.... Second... Bridgewater is a smallish organisation that hires from top universities... and loses 35 per cent of new recruits within 18 months because they underperform or cannot ‘get to the other side’ of their emotions. Scaling it... would be even harder. Last, it can stifle dissent. Police states monitor citizens to block any uprisings. This might not be the intention at Bridgewater but it has that effect. A technique that is designed to keep managers honest also prevents anyone from plotting rebellion without first notifying Mr Dalio....Mr Dalio wants to spread his gospel of transparency to other companies. Given the flaws in how others handle employees, it is worth taking seriously. But I would take it with a pinch of salt.

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