The Two Pizza Rule

Why the two pizza team makes your company more productive

Pizza to feed your team

The two-pizza team approach was popularized by Jeff Bezos, but it’s not a new concept. You’ve probably heard the story about Steve Jobs being ruthless about the number of attendees at a meeting. Drake Baer noted a couple of these stories in his article for BI. Jobs declined to meet with President Obama and other technology moguls because the group was too big. He routinely dismissed people from meetings if he felt they were not core to the discussion. Keeping meetings and teams to a manageable size can dramatically impact the efficiency and cost-effectiveness of your business. 

Why?

There are numerous reasons why limiting a team size is important, here are a few.

Cost Effective Meetings

Meetings are universally derided in modern business. There are books, comics, and YouTube videos pointing out the amount of time wasted in meetings. Many meetings could simply be replaced with a weekly email or, even better, with a collaboration tool like Asana or Slack. Next time you are sitting in a meeting, think about the cost of that meeting based on how many people are in the room. Twelve people, making an average of $70,000 per year, meeting for one hour once a week? That costs the company $23,764 per year. Let’s scale that back to four people. Now that meeting costs $7,904 per year, saving $15,000 annually. It’s not just the cost of the pizzas that matters it’s about how many people are required to commit to a certain project or initiative. 

Manageable teams

A manager should never have more than 10–12 direct reports. Ideally, teams should consist of 6–8 people. How many pizzas would you order for 6–8 people? Correct, two pizzas. Well-managed teams share a common trait: a strong relationship between the manager and their peers. Historically, management relied on role power to direct teams, often resulting in a climate of fear. While this might produce short-term results, the returns diminish over time. Managers who build relationships with their direct reports foster loyalty and self-worth, which leads to better long-term results. 

Accountability

There’s a psychological phenomenon called diffusion of responsibility. A classic example occurs when a group witnesses an emergency; the more people present, the less likely anyone is to take action. The same principle applies in business. When someone sends a generic email to a group, very few will act on it. Conversely, a small two pizza team fosters higher accountability. Peers are more likely to keep each other in check, leading to greater ownership and better results. 

ERP100 - Linchpin: The Importance of the Service Manager Role Tune into this podcast episode to learn about the crucial role of service managers in fostering accountability and effective communication within teams. Don’t miss out on valuable insights that can elevate your management practices 

Communication

“Did you get the memo?”

Communication is a pillar of any successful business or group. Even small businesses often struggle with effective communication. Technology can help, but it doesn’t solve human issues. A great manager will not simply repeat messaging but will reinterpret it for their team. Smaller teams make it easier to digest corporate communication and ensure that everyone is on the same page.

How?

Small companies that are growing past 10 people are the first to struggle with the issues that result from team growth. Companies scaling beyond 30 or 50 people experience these growing pains again. Managing a growing team requires a focused effort on training leadership skills in promising staff. Identify a right-hand person in your team—someone you can trust to lead in your absence. Work with intention to develop their leadership skills. Designating them as a team leader allows for better communication and problem escalation, ensuring your team remains effective and engaged. 

Keeping your teams small, ideally within the two pizza limit, can lead to enhanced productivity, accountability, and communication. Embrace this approach, and everyone will benefit.