Building a team is one of the trickiest parts of growing a small business.
You want to lighten your load a bit by adding in people.
But sometimes managing people can add more stress than it relieves.
You might wonder, “How big should my team be?”
“How many people should I add on?”
Amazon Founder Jeff Bezos has one simple solution he calls the “Two Pizza Rule.”
He mainly follows this rule for team meetings.
However, for small business owners, it can be applied to building a strong and productive team.
In this blog, we’ll dive into what the Two Pizza Rule is, why it works, and how you can apply it to your small business for better team dynamics and productivity.
Who Is Jeff Bezos?
Jeff Bezos is the founder and former CEO of Amazon.
Starting from a humble online bookstore in his garage, Bezos built Amazon into one of the world’s most valuable companies.
Under his leadership, Amazon became a household name.
They’ve pioneered innovations like Prime shipping, Alexa, and Amazon Web Services.
Aside from these massive achievements, Bezos is known for his efficient management strategies.
One of which is the “Two Pizza Rule.”
What Is the Two Pizza Rule?
The Two Pizza Rule is pretty straightforward.
It basically states that the ideal group size for every meeting should be able to share just two pizzas.
In other words, if a team can’t be fed with two pizzas, it’s too big.
It’s all about keeping things small, manageable, and productive.
In practice, this usually means keeping teams to around 5-10 people.
Why Small Teams Outperform Large Ones: The Science Behind Efficiency
When it comes to teamwork, size matters— and smaller is often better.
1. Communication
Smaller teams can communicate more effectively.
It’s because as team size grows, the number of lines of communication also increases.
Here’s what it looks like:
- A team of 3 has only 3 lines of communication.
- A team of 5 has 10 lines of communication.
- A team of 7 has 21 lines of communication.
The more people you add to your team, the more communication has a greater chance of becoming complicated and unclear.
This could lead to a lot of confusion and misunderstanding which makes teams less efficient and productive.
2. Accountability
In a small team, everyone’s contribution is visible.
It’s easier to track who’s responsible for what.
No one can hide behind others or pass the blame, which leads to stronger ownership of tasks.
Each person knows they have a critical role in the success of the project.
On the other hand, the bigger the team is, the more chances there are of social loafing.
Social loafing is when a team member exerts less effort in a group setting, thinking others will pick up the slack.
A 2013 Gallup report even found that teams with 5 to 9 employees were more engaged compared to teams that had 10 or more employees.
It stated that the level of employee engagement in bigger companies was only below 30%.
This means that when teams are smaller, members tend to feel more invested in their work.
3. Stronger Collaboration
With fewer people on the team, everyone is more likely to contribute and engage in discussions.
Team members are more connected, which fosters collaboration and leads to more innovative solutions.
A 2019 study found that smaller teams were 72% more likely to come up with groundbreaking concepts.
It’s because small teams are more likely to explore new possibilities.
Each member has more space to voice out their ideas and take creative risks!
How Small Businesses Can Apply the Two Pizza Rule
Now, you might be thinking, “That’s great for Amazon, but how does this apply to my small business?”
The beauty of the Two Pizza Rule is that it’s adaptable.
Here are some ways you can put it into practice:
1. Limit Your Team Size
Starting small is the way to go!
If you’re a solo entrepreneur looking to scale your business, aim to create a core team of 3 to 5 members first.
Before you start bringing people on board, take a good look at your current strengths and weaknesses.
Identify the gaps in your skill set first.
Think about what roles would complement your abilities.
Are you great at sales but need someone who can handle marketing?
Maybe you’re a creative whiz but could use a numbers person.
Be strategic in your hiring like you’re forming your own Avengers!
2. Encourage Open Communication
Create an environment that encourages open communication and feedback.
You can do this through:
- Regular team meetings
- Brainstorming sessions
- Informal check-ins
Give each team member the space to communicate and experiment with their ideas!
Build a culture that embraces failure so they don’t feel discouraged whenever an idea doesn’t work out.
3. Cross-Train Your Team Members
With a small team, it’s crucial that people can cover for each other.
Try implementing a system where team members get to learn each other’s primary skills.
This allows team members to develop new skills and understand different aspects of the business.
For example, in a small bakery business, the pastry chef could train the bread baker in some basic pastry techniques.
Remember, the goal of cross-training isn’t to make everyone a jack-of-all-trades.
It’s to create a more resilient and flexible team.
Each person should still have their area of expertise but with a solid understanding of other roles.
Build A Strong Productive Team by Keeping It Small and Compact
Build your own team of business heroes by incorporating the Two Pizza Rule.
Create a vibrant and dynamic work environment together with your team!
The success of this rule lies in making your tight-knit group feel veiled and inspired to contribute their best.
But also keep in mind that the Two Pizza Rule isn’t meant to be a one-size-fits-all solution.
Every business is unique, just like every pizza order (pineapple, anyone?).
Think of it simply as a starting point for your business.
Remember, at the end of the day, the best team size is the one that works for your unique business needs.
After all, that’s the beauty of being a small business owner— you have the freedom to find what works best for you and your team.
