Principles from Mark Bertolini, CEO of Bridgewater Associates
Mastering Leadership by getting out of the way
Estimated reading time (5 minutes)
Happy Friday, everyone.
Welcome to Principles Friday, where I share one principle that can help you in your life or business, one thought-provoking question, and one call to action toward that principle.
Principle of the Week
“The first level is your employees hate you. The second level is your employees fear you. The third level is when your employees praise you. The fourth level, you are invisible because your organization takes care of itself.”— Mark Bertolini, CEO of Bridgewater Associates.
Mark T. Bertolini is an American businessman who is the co-CEO of Bridgewater Associates, one of the world's largest hedge funds. He was previously the CEO of Aetna, a Fortune 50 diversified healthcare benefits company with over $60 billion in 2015 revenue.
Mark Bertolini, known for his unconventional approach to leadership, once made headlines for implementing a unique employee wellness program at Aetna. Under his leadership, Aetna offered employees a $300 annual bonus for getting at least seven hours of sleep per night. This initiative aimed to improve employee well-being and productivity.
You know, great leaders are like that. They do two things really well. They know what their folks need, and then they get out of the way, just like Mark Bertolini.
So, Mark learned a lot about leadership from his old man and even Taoism. But this one story really stuck with him, thanks to his dad.
Once, young Mark felt he deserved a raise. He went up to his dad, who was his boss and said, "Hey, Jerry's making $4.25 an hour, and I'm only getting $1.25. This isn't fair, I need a raise, or I'm quitting!"
His dad, being the wise man he was, asked, "Mark, do you have another job lined up?"
Mark shook his head, "Nope, but this isn't right!"
Well, guess what his dad did? He actually fired him! Yep, he let Mark go. But there was a lesson in this, a big one.
You see, Jerry, the guy making more, had a family to feed, rent to pay, a little kid to care for, and at the pinnacle of his career. Mark, on the other hand, didn't have those responsibilities.
So, his dad said, "Okay, I'll give you your job back, but it's gonna be at $1 an hour now."
Mark returned to the job, even though he was earning less than before. His dad wanted to teach him humility, the value of earning, and, most importantly, how real leaders understand their employees' needs.
So, what's the lesson here? Exceptional leaders don't just throw money at problems; they understand what their people are going through. They're aware of their needs and aren't afraid to take bold steps to make things right. That's leadership.
A great passage from Tao Te Ching inspired Mark in his journey:
“When the Master governs, the people
are hardly aware that he exists.
Next best is a leader who is loved.Next, the one who is feared.
The worst is one who is despised.If you don’t trust the people,
you make the untrustworthy.The Master doesn’t talk, he acts.
When his work is done,
the people say,' ‘Amazing:
we did it, all by ourselves!’”
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Question to Ponder
Take a moment to reflect on your leadership style. What level do you think you are at? What level do you think others think you are at?
Call to Action
As a leader, your legacy should be to arm your employees or family members with the skills to propel them into the future without you. Here are a few call-to-actions you can apply to become a Level 4 leader:
Cultivate Humility: Scientific studies have shown that leaders who exhibit humility are more effective and are perceived as more trustworthy by their teams (Owens & Hekman, 2012). Embrace humility to build strong relationships and foster a positive work environment. Mark Bertolini learned a lesson in humility from his father's leadership. When he requested a raise and threatened to quit, his father fired him and demonstrated the importance of understanding others' needs.
Build Trust: Trust is a critical factor in team performance. Research indicates that high levels of trust in leadership correlate with higher employee engagement and organizational performance (Dirks & Ferrin, 2002). Invest in building trust to boost team productivity. Mark's leadership principle aligns with Tao Te Ching's emphasis on trust. At Aetna, he implemented policies that improved employee well-being and healthcare benefits, building employee trust.
Lead with Actions: Behavioral leadership theories highlight the significance of leading by example. Actions demonstrate commitment and inspire team members. Behavioral leadership is linked to higher team performance and job satisfaction (Yukl, 1999). Mark Bertolini's actions spoke louder than words. His resilience and determination after a near-fatal skiing accident inspired his team. His personal example of overcoming adversity resonated with many.
Empower and Enable: Empowering leadership has been associated with increased job satisfaction, motivation, and employee performance (Arnold et al., 2000). Empower your team with autonomy and resources for success. Mark empowered employees at Aetna by offering yoga and mindfulness programs, recognizing the importance of holistic well-being. This empowerment led to improved employee satisfaction.
Lead from Behind: Research on transformational leadership emphasizes the importance of empowering and enabling team members to take the lead. Transformational leaders who lead from behind have been shown to enhance team innovation and performance (Bass & Riggio, 2006).
Video of the Week
The morning routine of Mark Bertolini
If you want to learn more principles, I interview founders on my podcast, The First 100, where they share how they acquired their first 100 paying customers. This week:
Episode 98 - The First 100 with Sterling Snow, Venture Partner at Pelion Venture
Episode 99 - The First 100 with Alex Leonardi, the CEO and Co-founder of VectorShift
And that’s a wrap for now!
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