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Jeff Bezos has a strange policy known as the “two-pizza rule,” which may also prove helpful for his professional and financial success.
The billionaire implemented the rule in the early days of Amazon.
“We try to build teams that are no bigger than the number of people who can eat two pizzas. We call that the two-pizza team rule,” Bezos once said.
This, the founder argued, ensures that a team is right-sized to be efficient, focused and not bogged down by keeping too many people informed about what needs to be done.
He also says that smaller teams can result in greater productivity for individual employees as well.
Amazon founder Jeff Bezos implemented the “two-pizza rule” in the early days of the company
“Ideally, you want a team of fewer than 10 people – smaller teams minimize lines of communication and reduce bureaucracy,” explained Daniel Slater, head of culture and innovation at Amazon Web Service.
“The two-pizza structure also promotes team accountability. Two-pizza teams don’t delegate something they’ve launched to another team to manage,” Slater wrote of the structure.
He added: “Two Pizzas teams therefore need to be on top of every part of their service, with a clear charter and a clearly defined mission.”
If the team starts to grow beyond the two-pizza ideal, Amazon will create a new team to take on some of the responsibilities that come with that expansion.
This brings us to the two pillars of Amazon’s success: efficiency and scalability, which have helped it become one of the largest companies in the world.
However, the “two-pizza rule” is not without its critics.
Johnny Warstrom, CEO of Mentimeter, argues that meetings in the post-COVID-19 remote work era may need to include more employees and find new ways to highlight people.
According to the rule, a team must be adequately fed with two pizzas and no more.
“I think Jeff Bezos’ two-pizza rule is outdated and needs a revamp,” Warstrom says. wrote in Entrepreneur.
“Limiting the number of participants in a meeting does not increase productivity,” the CEO explained.
“In fact, it makes it harder. Smaller teams limit the possibility of having a broad and diverse perspective.”
The two-pizza rule has become such a well-known business strategy that Personal Finance Experts at GObankingrates They have even recommended that people use it to achieve their own professional and financial goals.
Cost of viewing based on your time
Part of the two-pizza rule is to limit costs by not wasting staff time by keeping them in meetings they don’t need to be in.
One of these ways is to evaluate how much a purchase will cost in terms of your time.
For example, buying a $7 cup of coffee would cost someone who makes $15 an hour half an hour of their time.
Considering shopping as a way to save time helps keep things in perspective and avoid unnecessary expenses.
Keeping the focus
Another touted benefit of the two-pizza rule is staying focused without getting sidetracked by having too many cooks in the kitchen.
According to experts, when looking at your own finances, having focus, such as sitting down to complete one task at a time, can help keep things in order.
Pivot quickly
Finally, the Bezos Rule allows small teams to adapt quickly when a new requirement or problem comes their way.
Staying flexible in your work environment can help you tackle tasks more efficiently rather than leaving things to the last minute.
