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?

  1. 📉 Actively manage out the bottom performers every month, quarter, and year?
  2. 👩‍🌾 Focus on nurturing the high performers?
  3. 💪 Invest in increasing the performance of the bottom performers?
  4. 🔬 Keep teams intentionally small so this phenomenon is easier to manage?
  5. 🔄 Some combination of all of the above?

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