Mental Model Posts ‘Arithmetic’

Is There an Ideal Team Size?

Teamwork

Photo by Stuck in Customs

People are always looking for ways to get things done better or faster.  Depending on the task, that can often mean putting together teams.  Of course, a team isn’t always the best way to accomplish something.  I mean, there’s obviously no need to create a team to do something an individual could do as well or better.  However, if a team makes sense, what is the ideal team size?

Unfortunately, there’s no consensus on what the ideal team size should be.  This is probably because there just simply isn’t one.  And that, of course, is fine.  But everyone seems to have an opinion on what’s best.

Steve Jobs liked to keep his teams to no more than 100 people so that he could remember names; Peter Drucker said teams work best, as a rule, if they have three or four members (and should normally not exceed five or six); Google likes to limit teams to a max of six people; 37Signals thinks three people is the optimal team size for a product release; Reid Hoffman (of LinkedIn) would likely refer to Dunbar’s Number to substantiate groups of up to 150.  And the list could go on…  Does this mean that teams are effective at any size between three and 150 members?  It’s more likely that this simply means teambuilding is a situational exercise, and nothing more.  Read More »

There’s No Best Age to Start a Business: The Story of Sam Walton and Wal-Mart

Walton

Photo by tsweden

After graduating from the University of Missouri in 1940, Sam Walton took a job with J.C. Penney.  He was 22 years old.  He spent five years with J.C. Penney learning the retail industry.  In 1945, Walton became an entrepreneur and bought a Ben Franklin variety store in Arkansas for $25,000.  He was 27 years old.  Walton spent five years growing his Ben Franklin store.  But in 1950, after Walton’s landlord refused to renew the five year lease he had on the Ben Franklin store location, Walton had no choice but to sell the franchise.  He sold it for a fair price, and then had to start all over again.  Walton was now 32, and it was at this age when he opened his first Walton’s Five and Dime (again in Arkansas).  But it wasn’t until he was 44 years old that he opened the first Wal-Mart.  It was a very gradual progression.  So, does age really matter when starting a business?  I doubt it.  There is no best age to start a business, no perfect time – none of that.  And Sam Walton is the perfect example of this.  Read More »