{"id":15057,"date":"2020-09-11T15:18:08","date_gmt":"2020-09-11T19:18:08","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=15057"},"modified":"2020-09-25T19:42:25","modified_gmt":"2020-09-25T23:42:25","slug":"leadership-and-people-management","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/leadership-and-people-management\/","title":{"rendered":"Top Leadership and People Management Skills"},"content":{"rendered":"\n<p>How can you acquire best <a href=\"https:\/\/www.shortform.com\/blog\/leadership-and-people-management-2\/\">leadership and people management<\/a> skills? What kind of management skills are the most important? <\/p>\n\n\n\n<p>Leadership and people management skills are important no matter your job. <a href=\"https:\/\/www.shortform.com\/blog\/who-is-ray-dalio\/\">Ray Dalio<\/a> argues that the best leadership and people management skills come from valuing people and cultivating relationships. <\/p>\n\n\n\n<p>Keep reading to find out more about leadership and people management skills. <\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Leadership and People Management<\/strong><\/h2>\n\n\n\n<p>Dalio believes <strong>the WHO is more important than the WHAT<\/strong>. Deciding what is to be worked on is less important than deciding who is responsible for deciding what to work on. Deciding what a job\u2019s responsibilities are is less important than deciding <em>who<\/em> would <a href=\"https:\/\/www.shortform.com\/blog\/melania-trumps-be-best\/\">be best<\/a> at serving them. This is where leadership and people management comes in. <\/p>\n\n\n\n<p>The people are even more important than the culture, because the people shape the culture.&nbsp;Good people management recognizes this. <\/p>\n\n\n\n<p>In several useful tactical chapters, Ray Dalio lays out his principles for people management. The major themes are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>People have different values, abilities, and skills. Values and abilities are very hard to change, so don\u2019t hire people lacking either values or abilities, and don\u2019t rehabilitate people who are discovered to lack them.<\/li><li>Seek the truth on people\u2019s mistakes and shortcomings. Use good metrics to measure this, and monitor them frequently.<\/li><li>Impress to workers that accuracy of feedback and kindness are the same thing. A caring gift you can give someone is the self-awareness to be successful.<\/li><li>Make the <a href=\"https:\/\/www.shortform.com\/blog\/making-hard-decisions\/\">hard decision<\/a> to fire people in pursuit of the organization\u2019s goals.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Cultivate Meaningful Relationships<\/strong><\/h3>\n\n\n\n<p>Leadership and people management requires cultivating good relationships. Treating people like partners or extended family will make relationships more special than quid pro quo employment agreements. People struggle well together on a common mission, and they help each other evolve.<\/p>\n\n\n\n<p>Expect your team to think like owners, and to behave accordingly.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>This helps people uphold their responsibilities, such as making sure things are taken care of when they\u2019re on vacation, and spending company money like it\u2019s their own.<\/li><\/ul>\n\n\n\n<p><strong>Great relationships are built on common values and interests, having similar approaches to pursuing them, being reasonable and considerate with each other, and holding each other to high standards.<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Dalio considers Bridgewater \u201ca family business in which family members have to perform excellently or be cut.\u201d<\/li><li>It\u2019s important to have shared values and mission. People who aren\u2019t aligned on the mission will work for different, conflicting goals, such as whatever makes more money for themselves at the expense of values.<\/li><\/ul>\n\n\n\n<p>People who buy into the community provide it with a long-term skeletal strength. The stronger the community is, the more it protects against bad actors. Good people management means seeing these strengths. <\/p>\n\n\n\n<p>People in a community should be more considerate to others than what they demand for themselves. For example, if you are offended by how someone behaves, it is inconsiderate to ask them to stop exercising their rights for your sake.<\/p>\n\n\n\n<p>Don\u2019t be naive about how people behave. <strong>Most people will pretend to operate in your interest while operating in their own. <\/strong>Treasure honorable people who will treat you well even when you\u2019re not looking.<\/p>\n\n\n\n<p>Other tactics to build relationships:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Fund ways for people to build relationships with each other. Pay for half of activities people want to do together, and pay for food and drink at hosted dinners.<\/li><li>Accept that some people will not buy into the culture. They can still contribute a lot and <a href=\"https:\/\/www.shortform.com\/blog\/be-considerate\/\">be considerate<\/a>.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Compensation<\/strong><\/h4>\n\n\n\n<p>Despite all the positives of culture, people need to get paid for their work, so how should you pay them? This is another part of leadership and people management. Dalio gives some advice:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Strive to be on the far side of fair. Each party should aim to say \u201cyou deserve more\u201d to each other.<\/li><li>Make sure people\u2019s incentives align with their responsibilities, so they experience the consequences of the outcomes.<\/li><li>People doing above-normal work should be paid accordingly; likewise for people doing below-average work.<\/li><li>Being generous does not necessitate total fairness or entitlement. In general, people should be happy with what they get, and not point to what other people get as justification for getting the same thing.<ul><li>For example, many people commuted from New York City to Bridgewater\u2019s Connecticut headquarters, so Bridgewater funded a shuttle for people who live in New York City. One employee suggested that it\u2019d be fair to compensate drivers for the hundreds of dollars they spend on gas, since bus riders were getting free transit. Dalio felt no obligation to be equal in generosity.<\/li><\/ul><\/li><\/ul>\n\n\n\n<h5 class=\"wp-block-heading\">Using Algorithms for Management<\/h5>\n\n\n\n<p>Good people management skills may mean using tools and technolgoy to manage people.  Just as Bridgewater used computers to automate investment decisions, Dalio wanted to automate people management using algorithms. To him, there was nothing special about management that prevented it from being codified into rules. Just as with investments, automating management would come with advantages\u2014thinking through good rules would strengthen the logic and reasoning; decisions would be consistent and unemotional; and people could continuously improve the machines with their creativity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How can you acquire best leadership and people management skills? What kind of management skills are the most important? Leadership and people management skills are important no matter your job. Ray Dalio argues that the best leadership and people management skills come from valuing people and cultivating relationships. Keep reading to find out more about leadership and people management skills.<\/p>\n","protected":false},"author":5,"featured_media":15072,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,30],"tags":[129],"class_list":["post-15057","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management","category-work","tag-principles-life-and-work","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Top Leadership and People Management Skills - Shortform Books<\/title>\n<meta name=\"description\" content=\"What leadership and people management skills can help your company succeed? 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