Dear GM,

Ray Dalio built Bridgewater into the world's largest hedge fund with a principle that makes most organisations uncomfortable: "Power should lie in the reasoning, not the position, of the individual." No hierarchy based on age or seniority. The best ideas win regardless of source.

In 50 years, this approach delivered $58 billion in returns for clients.

This got me thinking.

Sport excels at meritocracy with players. The scoreboard doesn't lie. Performance determines selection. The 22-year-old rookie who dominates gets the starting spot over the 10-year veteran.

But walk into the offices and something shifts. History becomes currency. Relationships trump results.

Picture this: Your new performance analyst discovers something game-changing. They revolutionise your draft strategy. Their insights contribute to three wins this season.

They're energised. All-in. Looking for that investment to be reciprocated.

Then some in leadership feel threatened. Works to reduce their impact. Extra funding goes to bring on another coach they've known for fifteen years. Someone whose main contribution is making meetings longer.

Your analyst updates their LinkedIn that night.

Within six months, they're building a dynasty at your rival.

Every time we choose relationships over results, we lose a talented individual. We send a message to every high performer: merit isn't enough here.

Meanwhile, we keep people who bring:

  • Politics instead of solutions

  • Bureaucracy instead of speed

  • Comfort instead of drive

  • Gatekeeping instead of growth

The frustrating part? These aren't bad people. They're often good people in the wrong roles. Loyalty protects them. But that loyalty serves neither them nor the mission.

The best teams operate another way. They can look every person in the eye and promise: "Help us win, and you'll advance here."

Advancement depends on contribution to winning. Not tenure. Not connections. This changes everything. Top talent fights to join. They stay longer. They recruit other exceptional people.

The winning compounds.

It's not about being ruthless. It's about being clear.

Transparent Pathways: Every role has measurable contributions to competitive advantage. That analyst who improved your draft strategy? They can see exactly how that translates to their next opportunity. No guessing. No politics.

Fresh Perspective: Bringing in outside talent prevents stagnation. It maintains the healthy pressure that keeps everyone sharp. Your ten-year veterans stay excellent because they have to.

Radical Clarity: Teams know advancement criteria before they start. They understand that loyalty to the mission - not to individuals - drives every decision.

Look at your last three significant internal appointments:

  • Could a talented outsider see a clear path to those roles based on performance?

  • Do your best people know exactly what achievements unlock their next level?

  • Are you losing talent to "opportunities" elsewhere while keeping comfortable mediocrity?

If the answers make you uncomfortable, you're hemorrhaging talent. You're losing the people you need most.

Making this shift doesn't mean firing everyone with tenure. It means changing what tenure represents.

In mission-first organisations, longevity comes from sustained excellence, not accumulated relationships. Ten-year veterans stay because they've evolved with every season. They contribute more each year. No one protects them. Excellence protects them.

Start with one simple change. Make your next promotion decision based on a blind assessment of contribution to competitive advantage. Remove names, tenure, history. Look at impact.

Watch what happens when your team realises performance actually matters.

From working across many organisations, I've learned this: The ones that win aren't those with the biggest budgets. They're the ones where every person believes their contribution impacts their future.

You can be loyal to the people who got you here. Or loyal to the mission that gets you there.

Both have value. Only one creates dynasties.

The question isn't whether to be loyal. It's whether your loyalty serves the past or the future. Whether it protects comfort or demands excellence. Whether it preserves relationships or pursues championships.

Dalio's idea of meritocracy isn't about hedge funds. It's about any organisation that wants to sustain excellence. Where the best idea wins, the best people stay.

In sport, the best people separate fourth place from trophies.

The organisations that understand this don't just win more. They become the places where the best people can't imagine working anywhere else.

- S.

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