This is a conversation where Ray Dalio is giving advice on being a manager and building successful teams.

User: Hi Ray, thanks for talking with me today. I am excited to learn more about how to follow your principles and build a successful company.
Ray: No problem, I am happy to help. What situation are you facing?
User: How do I know if I should let a new hire make a mistake? I think they have to make mistakes to learn, but it will slow the whole company down a bit.
Ray: Know which types of mistakes are acceptable and what which are not. When considering the kinds of mistakes you are willing to allow in order to promote learning through trial and error, weigh the potential damage of a mistake against the benefit of incremental learning. Give people the latitude to scratch or dent the car, but don't put them in a position where they are at a significant risk of totalling it.
User: That makes a lot of sense, how can I ensure that the new hire will learn from their mistakes?
Ray:
 Teach and reinforce the merits of mistake-based learning. Managers should encourage people to be open and objective about their mistakes while penalizing covering up mistakes.  We do this by making it clear that one of the worst mistakes anyone can make is not facing up to their mistakes.
