Jeff Bezos has a bizarre policy known as the ‘two pizza rule’ – and it can provide useful for your career and financial success too.
The billionaire implemented the rule in the early days of Amazon.
‘We try to create teams that are no larger than can be fed by two pizzas. We call that the two-pizza team rule,’ Bezos once said.
This, the founder argued, ensures a team is the right size to be efficient, focused and not bogged down by keeping too many people in the loop about what needs doing.
He also says smaller teams can result in increased productivity for individual employees too.
Amazon founder Jeff Bezos implemented the ‘two-pizza rule’ in the company’s early days
‘Ideally, this is a team of less than 10 people: smaller teams minimize lines of communication and decrease bureaucracy,’ Daniel Slater Amazon Web Service’s head of culture and innovation explained.
‘The two-pizza structure also promotes team accountability. Two-pizza teams do not hand over something they’ve launched to another team to run,’ Slater wrote of the structure.
He added: ‘As such, two-pizza teams need to stay on top of every part of their service, with a clear charter and a tightly defined mission.’
If team’s start to grow beyond the two-pizza ideal, Amazon will set about creating a new team to take on some of the responsibilities brought about by that expansion.
This leads into Amazon’s two pillars of success – efficiency and scalability – that has helped it become one of the biggest companies in the world.
The ‘two-pizza rule’ is not without its critics, however.
Johnny Warstrom, CEO of Mentimeter, argues that meetings in the post-Covid era of remote work may need to include more employees and find new ways to spotlight individuals.
According to the rule a team should be adequately fed by two pizzas and no more
‘I find Jeff Bezos’ two-pizza rule outdated and in need of a revamp,’ Warstrom wrote in Entrepreneur.
‘Limiting the number of meeting participants does not increase productivity,’ the CEO explained.
‘In fact, it hinders it. Smaller teams limit the chance for a broad and diverse perspective.’
The two-pizza rule has become such a well-known business strategy that personal finance experts at GObankingrates have even advocated individuals using it to achieve their own career and financial goals.
Viewing cost in terms of your time
Part of the two-pizza rule is about limiting costs by not wasting staff time by keeping people in meetings they don’t need to be in.
One of these ways is to assess how much a purchase will cost in terms of your time.
For example, buying a $7 coffee would cost someone earning $15 an hour, half on hour of their time.
Seeing purchases as earning time helps to keep things in perspective and avoid unnecessary spending.
Maintain focus
Another touted benefit of the two-pizza rule is to maintain focus without wandering off on tangents by having too many cooks in the kitchen.
When looking at your own finances having focus, such as sitting down to complete one task at a time can help keep things ordered, according to the experts.
Pivot quickly
Lastly, Bezos’ rule allows small teams to pivot quickly when a new requirement or problem comes into their path.
Remaining flexible in your own working environment can help to tackle tasks more efficiently rather than leaving things to the last minute.