menu
#ideas

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?

Related Posts


Maximize Your Income Potential Embrace These Four Areas That Others Often Avoid — 💪 📈 💼 ğŸŽ² People often avoid investing in these areas due to anxiety, fear, or uncert ⟵
Get Rich Slow: The Proven Process For Bootstrapped Entrepreneurs — ❤️ Choose a group of customers you loveThese are your people🌐 Spend time where they hang out ⟶
Interested In Buying A Small Business? Here Is My Initial Screening Process As A Full-Time Investor To Determine If A Business Is Worth A Second Look — Businesses have similar attributesI meet with small business owners and brokers actively selling th ⟶

Get money. Keep money.


Join 2,000+ subscribers to my free weekly newsletter — Infinite Runway. Every Sunday morning, you'll get one actionable tip to help start and automate your business.