Pareto’s Principle Isn’t Enough: Price’s Law Claims Performance Distribution Is More Extreme As Your Teams Get Bigger
Mediocrity scales infinitely. Excellence scales linearly.
Price’s Law says that 50% of the work is done by the square root of the total number of people who participate in the work.
This has been observed by numerous executives in managing knowledge workers — especially salespeople.
Do you manage more than 100 people? If so, does this apply to your team?
If you agree, how do you best manage your organization?
- 📉 Actively manage out the bottom performers every month, quarter, and year?
- 👩🌾 Focus on nurturing the high performers?
- 💪 Invest in increasing the performance of the bottom performers?
- 🔬 Keep teams intentionally small so this phenomenon is easier to manage?
- 🔄 Some combination of all of the above?
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