The Feedback Divide: How Bridgewater Built Success and Kodak Silenced Itself Into Failure

Leadership often hinges on a deceptively simple question: What do you do with the truth?

Do you seek it, even when it's uncomfortable, or do you avoid it, hoping the silence means everything is fine?

Two iconic companies, Bridgewater Associates and Kodak, present a striking contrast in how feedback cultures influence an organization’s fate. One transformed feedback into an institutional advantage, while the other ignored it, along with its future.

Bridgewater Associates: Building Success Through Feedback

Bridgewater Associates, founded by Ray Dalio, didn’t just become the world’s largest hedge fund through clever investing. It thrived by embedding radical transparency and feedback into the company’s DNA.

At Bridgewater, feedback isn’t optional; it’s operational. Every team member, regardless of title, is expected to challenge assumptions, confront mistakes, and contribute openly to decision-making. Meetings are often recorded and reviewed. Employees provide real-time ratings of each other based on whether they’re listening, disagreeing constructively, and adhering to the firm's principles.

This system of radical feedback loops, as described in Dalio’s philosophy of Radical Transparency, is designed not only to catch errors but also to learn from them quickly. Feedback serves as the engine of continuous improvement, both in the investment strategy and the organizational culture.

“Radical open-mindedness and radical transparency are invaluable for rapid learning and effective change.”
— Ray Dalio

The result? An adaptive, resilient firm that’s maintained global relevance for decades.

Kodak: The Cost of Suppressed Feedback

Now consider Kodak, once synonymous with photography. In 1975, a Kodak engineer named Steve Sasson invented the first digital camera. Instead of embracing the technology, executives responded with caution and even disdain. As Sasson later recalled, “They said, that’s cute, but don’t tell anyone about it.”

Why? Because digital threatened the company’s dominant film business. Kodak’s leadership, focused on preserving what had worked in the past, silenced the very innovation that could have secured its future.

Even as digital photography gained traction. Why? Because digital threatened the company’s dominant film business. Kodak’s leadership, focused on preserving what had once worked, silenced the very innovation that could have secured its future. In the 1990s, Kodak failed to act decisively. Internal feedback warning of a shifting market was ignored or buried. Executives were focused on sustaining quarterly profits, not long-term viability.

By the time Kodak tried to re-enter the digital space, it was too late. Competitors like Canon and Sony had already taken the lead. In 2012, Kodak filed for bankruptcy, despite having invented the future 35 years earlier.

What This Means for You as a Leader

Most leaders say they want feedback. Fewer are willing to build the systems and culture that allow it.

Here are the takeaways you can use today:

1. Feedback is not a performance tool; it’s a survival tool.

Your ability to detect blind spots, adapt to threats, and innovate depends on how well your people can speak freely. If employees don’t feel safe telling the truth, the organization loses its grip on reality.

2. Encourage dissent while there’s still time to adjust.

Bridgewater celebrates disagreement as a way to stress-test ideas. Kodak punished dissent by sidelining innovators and insulating leadership from hard conversations.

3. Build feedback into your systems, not just your values.

Stating “we value feedback” isn't enough. You need mechanisms: regular 360s, anonymous surveys, reflection rituals, transparent metrics, and leadership modeling. Feedback should be part of how the organization breathes, not a quarterly report.

4. Don’t let past success silence current reality.

Kodak was a household name. They had every resource they needed to lead in the digital era. But their refusal to adjust based on internal feedback and market cues cost them everything.

Final Thought

The difference between staying relevant and becoming a cautionary tale often comes down to one thing: whether your culture welcomes truth or avoids it.

Bridgewater proves that feedback can build lasting resilience. Kodak reminds us that when feedback is silenced, risk doesn’t disappear. It just goes unspoken, until it’s too late.

At Ember & Oak, we believe feedback isn’t a one-time event. It’s a leadership commitment. And the organizations that survive aren’t the ones that know the most, they’re the ones that listen the best.

This article was also featured on Medium and Substack.

About the Author

Clayton Thompson,  Ph.D., is a Colonel in the U.S. Air Force with over 20 years of leadership experience. He is the author of the upcoming book RA-RA Feedback: It’s Not a Moment. It’s a System! for building trust, accelerating growth, and creating a leadership advantage.