The Optimal Number of People for Product Development: Less is Often More
“Jeff Bezos has one rule in Amazon or, better to say, a way of thinking: if the team can not be fed with two pizzas at one set - then this team is too big.” - Forbes
In today's world of abundance, our thinking can often be negatively influenced. Within the business realm, this manifests as a relentless pursuit of more: more personnel, increased resources, larger offices, a greater array of products, and an ever-expanding list of opportunities. Yet, it's easy to overlook the value of less. Embracing limitations can paradoxically boost productivity.
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During a recent podcast conversation, a guest and I observed that some companies onboard numerous designers merely to mirror industry trends, aggressively seeking top talent to build teams numbering in the hundreds. These companies add layers upon layers of human resources, under the mistaken belief that "more is better".
One might assume that a company like Facebook, serving over a billion users, necessitates a massive support and development staff. It seems logical that such a scale demands intricate commands and a team to manage user access through seemingly simple buttons. But is this really the only way to effectively serve such a vast audience?
Witnessing large corporations pouring vast sums into expansive teams can create the illusion that launching a successful product in today's "design era" requires dozens or even hundreds of designers. However, this perception is often inaccurate. In reality, such an approach frequently leads to wasted resources.
The fundamental design principle remains: quality trumps quantity.
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The Ringelmann Effect
The Ringelmann Effect explains why individual productivity tends to decrease as group size increases.
Ringelmann's experiment demonstrated this principle by having individuals and groups of students pull a five-meter rope attached to a dynamometer. When two students pulled together, their individual performance dropped to 93% of their solo capability. With three people, it fell to 85%, and with four, it plummeted to 77%. In a group of eight, individual effort averaged only 50% of their maximum potential.
Psychologists attribute this effect to the reduced impact of individual accountability in larger groups, leading to diminished motivation. Furthermore, personal contributions become less visible, fostering a sense of "social loafing."
While some skeptics argue that experiments involving physical exertion don't accurately reflect creative endeavors, I contend that smaller teams can yield exceptional creative outcomes.
The Power of LEGO
A UCLA study involving LEGO construction sheds light on this dynamic. Researchers divided participants into teams of two and four, tasking them with assembling specific LEGO structures. The two-person teams completed the task in an average of 36 minutes, while the four-person teams took 56 minutes. This difference highlights the challenge of aligning diverse perspectives within larger groups.
“Keep the size of the team as small as possible. The Metcalfe's Law, which states that 'the influence of the network is proportional to the square of the number of connected system users' has an effect when it comes to project teams. The team's efficiency is approximately equal to the inverse square of the number of team members. I'm beginning to think that three people are optimal for the release of the product 1.0. Start by reducing the number of people you plan to add to the team, and then reduce a few more before you have typed the team." - Mark Hedlund
At ShipnGro, we often describe our products, such as Logistics Explorer, Tracking, and Stuffing Calculator, as being akin to LEGO bricks for forwarders and carriers. When utilized effectively, these digital tools offer significant advantages, allowing for the capture of more data, streamlined request processing, and enhanced customer engagement. Furthermore, computers mitigate the risks associated with human error, leading to more consistent and reliable outcomes.
The Virtue of Constraints
The urge to address challenges by simply adding more resources, people, and time stems from a "factory mentality," suggesting that increased input invariably leads to increased output. However, this approach often backfires, resulting in bloated, inefficient projects.
Consider Gordon Ramsay's "Kitchen Nightmares," where struggling restaurants are revitalized by simplifying their menus. Owners often believe that expanding their offerings will attract more customers, but instead, they end up with subpar dishes and inventory management issues. Ramsay's solution is almost always to pare down the menu, demonstrating that constraints can drive creativity.
This principle extends beyond restaurants to product development and team management, particularly within the logistics industry. While digital technologies offer unprecedented opportunities for growth, they must be wielded strategically. When developing a new feature, creative limitations are essential. Resisting the temptation to extend deadlines, increase budgets, and expand teams can lead to more focused and effective outcomes.
If you can't build the first version of your product with a small team, it probably means that the people aren't right, or that the product itself is too complicated. Reduce initial requirements or find people who fit the role.
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