1. Build your organization from the top down.
2. Remember that everyone must be overseen by a believable person who has high standards.
3. Make sure the people at the top of each pyramid have the skills and focus to manage their direct reports and a deep understanding of their jobs.
4. In designing your organization, remember that the 5-Step Process is the path to success and that different people are good at different steps.
5. Don’t build the organization to fit the people.
6. Keep scale in mind.
7. Organize departments and sub-departments around the most logical groupings based on “gravitational pull.”
7. Make departments as self-sufficient as possible so that they have control over the resources they need to achieve their goals.
8. Ensure that the ratios of senior managers to junior managers and of junior managers to their reports are limited to preserve quality communication and mutual understanding.
9. Consider succession and training in your design.
10. Don’t just pay attention to your job; pay attention to how your job will be done if you are no longer around.
11. Use “double-do” rather than “double-check” to make sure mission-critical tasks are done correctly.
12. Use consultants wisely and watch out for consultant addiction.
Source:
Ray Dalio’s Book Principles
