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 β€” 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. πŸ“‰ Actively manage out the bottom performers every month, quarter, and year?
  2. πŸ‘©β€πŸŒΎ Focus on nurturing the high performers?
  3. πŸ’ͺ Invest in increasing the performance of the bottom performers?
  4. πŸ”¬ Keep teams intentionally small so this phenomenon is easier to manage?
  5. πŸ”„ Some combination of all of the above?

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