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Writer's pictureRenwick Brutus

The Impact of Team Size on Productivity: Finding the Sweet Spot

Updated: Sep 17

Have you ever noticed that a team can sometimes be too large to move efficiently, like a massive ship turning slowly, or too small to tackle all the tasks at hand, much like a two-man crew struggling to sail a yacht? Finding the right team size is more than just a logistical decision—it’s a crucial factor in achieving maximum productivity and fostering cohesion within a team.


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How Team Size Influences Efficiency

Studies on organizational dynamics have long revealed that team size can either be a catalyst for innovation or a barrier to efficiency. Research from Harvard Business Review indicates that smaller teams—typically ranging from 5 to 7 members—perform better than larger ones in terms of engagement, collaboration, and decision-making. According to Dunbar’s Number, human beings can maintain stable relationships with about 150 people, but when it comes to teams, the effective number is far smaller.


Paul J. Meyer, a pioneer in personal development, highlighted in his work Effective Team Dynamics that teams function best when they are designed with a focus on purpose, structure, and relationships. Too many members can dilute the responsibility, leaving critical tasks either duplicated or forgotten, while too few may lead to burnout and inefficiency​.


In his book Drive, Daniel Pink emphasizes that autonomy and purpose drive motivation. Smaller teams allow for clearer communication channels, quicker decision-making, and a stronger sense of ownership, all of which are critical in empowering individuals to take responsibility for their roles. When the team expands too much, it fragments that sense of ownership, leading to disengagement.


The Sweet Spot for Team Size

When thinking about the perfect size for a team, consider these factors:

  1. Project Complexity: The more complex the task, the more expertise you may need, but remember, more experts can lead to more complexity in managing the team. A study from the Journal of Applied Psychology found that teams with 5 to 7 members are the most productive because they balance diverse ideas with effective coordination​.

  2. Communication Overload: With each new member added, communication pathways multiply. Amazon’s Jeff Bezos uses the “two pizza rule,” which suggests that if a team can’t be fed by two pizzas, it’s too big. This rule ties into the idea that as the team size increases, more time is spent communicating than actually working.

  3. Shared Goals and Purpose: Smaller teams allow for a focused mission where each person’s contribution is essential. Meyer’s Effective Strategic Leadership emphasized the power of clarity in strategy, noting that when team members understand their collective purpose, they are more likely to stay motivated and productive​.


Collaboration and Cohesion in Small vs. Large Teams

Larger teams, often a well-intentioned attempt to pool more brainpower and resources, can end up causing more harm than good. According to the Effective Team Development program, communication and accountability become significant challenges when a team exceeds a manageable size​. In contrast, smaller teams foster a natural cohesion, where individual strengths are recognized and amplified.


Consider how sports teams function: basketball teams, with only five players on the court at any time, have to work in perfect synchrony. Each player knows their role, communicates constantly, and reacts in real-time to shifts in the game. In contrast, larger groups, like a football team’s defense squad, require more coordination and structure to function well. It’s not that larger groups can’t be productive, but the dynamics require more deliberate management and a tighter rein on accountability and communication flow.


As Steve Jobs once said, “Great things in business are never done by one person. They’re done by a team of people.” The challenge is not just to build any team, but the right-sized team. Whether you are working in a startup or a large organization, finding the balance between “too big” and “too small” is crucial for productivity and success.


The Art of Balance

In today’s world, leaders must balance the agility of a small team with the knowledge and resources that larger groups provide. The sweet spot may shift depending on the industry, the project, and the personalities involved. As noted in Effective Personal Productivity, managing team size well is critical to enhancing not only productivity but also personal satisfaction​. To strike this balance, leaders need to continuously evaluate their team’s effectiveness. Are we communicating well? Are tasks being completed on time? Does every member feel that their contribution is significant?


An insight from Jim Collins in his book Good to Great underscores this: “It’s not about getting the right people on the bus, but getting them in the right seats.” Similarly, once you have the right people, ensure your team’s size enables them to collaborate effectively without overwhelming them.


The Takeaway

In the quest to maximize productivity and team cohesion, size truly matters. Whether you lead a small startup team or manage a department in a global organization, the key lies in striking a balance. The sweet spot, it seems, hovers around smaller teams of 5 to 7 members, with the flexibility to scale depending on the demands of the task.


By cultivating small, autonomous groups where communication is clear, roles are well-defined, and purpose is aligned, leaders can drive their teams toward greater efficiency, collaboration, and ultimately, success. Just remember, sometimes less is more.


For further insights on effective team management and productivity, I recommend Drive by Daniel Pink, Good to Great by Jim Collins, and LMI's Effective Team Development series​​.


Renwick Brutus' career has spanned roles as research economist, investment advisor, entrepreneur and consultant. He holds an MBA from Fordham University and has been recognized for his outstanding achievement in sales and business leadership. Today, Renwick applies his unique blend of business strategy and interpersonal skills to help individuals prosper and companies grow. He owns multiple companies and is in great demand to consult with business leaders. Contact him by email  and LinkedIn.





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