{"id":22071,"date":"2022-03-13T07:00:24","date_gmt":"2022-03-13T12:00:24","guid":{"rendered":"https:\/\/www.cfosimplified.com\/?p=22071"},"modified":"2022-09-12T17:43:34","modified_gmt":"2022-09-12T22:43:34","slug":"managing-your-business-using-the-two-pizza-rule","status":"publish","type":"post","link":"https:\/\/www.cfosimplified.com\/management\/managing-your-business-using-the-two-pizza-rule\/","title":{"rendered":"Managing Your Business Using the \u2018Two-Pizza Rule\u2019"},"content":{"rendered":"

All businesses are created with the intent to succeed.<\/span><\/p>\n

Statistics prove, however, that unfortunately many do not. In fact, according to the <\/span>U.S. Bureau of Labor Statistics<\/span><\/a> (BLS), \u201c20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. Only 25% of new businesses make it to 15 years or more.\u201d<\/span><\/p>\n

These statistics have stayed relatively consistent since the 1990s.<\/span><\/p>\n

This considered, business owners today should do everything in their power to ensure their teams are functioning at their peak potential. Productivity is important because providing more goods and services translates to higher profits.<\/span><\/p>\n

But how do you achieve high levels of productivity in your teams?<\/span><\/p>\n

There are many methods out there\u2014creating SMART goals, the Eisenhower Matrix, the Two-Minute Rule, the list goes on. But have you ever considered managing your business using the \u2018Two-Pizza Rule\u2019?<\/span><\/p>\n

Let\u2019s discuss the Two-Pizza Rule and how it can help you manage your business.<\/span><\/p>\n

\"Two<\/h2>\n

What is the Two-Pizza Rule?<\/span><\/h2>\n

Today, meetings are notorious for being a waste of time. In fact, <\/span>research<\/span><\/a> shows that in an hour-long meeting, 15% (or nine minutes) of its time is wasted.<\/span><\/p>\n

As a result of highly unproductive meetings, Jeff Bezos, the billionaire founder of Amazon, created the two-pizza rule. The two-pizza rule is simple enough, stating that <\/span>in an internal team meeting, there should only be as many attendees as could comfortably share two pizzas<\/b>.<\/span><\/p>\n

The theory behind this rule doesn\u2019t have so much to do with pizza; but instead, points toward the fact that smaller teams are more productive. In fact, recently, many <\/span>studies<\/span><\/a> have shown that adding more team members hinders team productivity. \u201cThere’s a growing consensus among business professionals that five to eight\u201d team members is the magic number.<\/span><\/p>\n

This reduced number leads to higher levels of:<\/span><\/p>\n