Because of Price’s law: the square root of number of employees do about 50% of the work (that creates value). So 10.000 emmployees means 100 persons do 50% and 9900 the other 50%.
This mean that a team of 4 is the most efficient size. However if you want to scale you must loose efficiency. Because of Price’s law: the square root of number of employees do 50% of the work (that creates value). So 10.000 employees means 100 persons do 50% and 9900 the other 50%.
This mean that a team of 4 is the most efficient size. However if you want to scale you must loose efficiency.
Price’s law is widely quoted in management training and consulting, but it wasn’t a great fit for the data he was originally publishing, and it’s an empirical observation rather than hard and fast fundamental fact.
Contributions almost certainly follow some sort of discrete power distribution, but that doesn’t mean you’ll hit a comfortable state at four people where everything has evened out nicely.
But it still works as a rule of thumb: if your department has 100 people and you want to double its productivity, hiring 100 more people won't help. You have to hire around 300 more people if you don't change the way the department works.
This mean that a team of 4 is the most efficient size. However if you want to scale you must loose efficiency. Because of Price’s law: the square root of number of employees do 50% of the work (that creates value). So 10.000 employees means 100 persons do 50% and 9900 the other 50%.
This mean that a team of 4 is the most efficient size. However if you want to scale you must loose efficiency.