The Two Pizza Rule is a Business Strategy stated by the CEO of Amazon, Jeff Bezos, who has been implementing it since the early days of Amazon.
So what exactly is this two pizza rule?
The Two Pizza Rule states that every internal team or inner circle working towards a goal should be small enough that it can be fed with two pizzas. This was done to make meetings more efficient with a limited number of participants. Decisions could be made in a much lesser amount of time without any delays or time wastage.
This method of teamwork could further be explained by science. Harvard researcher, J. Richard Hackman concluded that four to six is the most favorable number of participants for a project team and no work team should have more than 10 members.
This is because communication problems increase “exponentially as team size increases.” Ironically, the larger the team, the more time will be spent on communication instead of producing work, hence decreasing the chances of the team reaching a decision.
A recent report from Gallup concluded that companies in the United States with fewer than ten employees scored engagement levels of 42 percent while the average engagement level for larger companies was below 30 percent.
Recently the Chief Technology Officer of PayTm, Manmeet Dhody revealed that the Two Pizza rule could also prevent data duplication since each team owns a unique domain in a business.
Nonetheless, we all know that teamwork is the core of a business.
With that mentioned, a business owner must understand the limits of communication and draw the necessary lines for a business to thrive.