Friday, 22 April 2022

What Is Price's Law

 Some guy did a statistical study, and came to this conclusion.....if you had a thousand people working for you, the square root of that (31 people) are producing 50-percent of the actual output of the organization.

Over the past month, I've probably watched a dozen YouTube videos to discuss the 'law' and no one can really explain why this works the way that it does.

It means that if you ran a bar with sixteen employees....it's four guys who are carry the bulk of the work.

It means if you need talent to run an operation, but you also need enthusiasm from everyone, and most of the time.....you don't get true enthusiasm.  A guy is happy enough to show up and give you maybe 75-percent of his best, but frankly.....about half the time....he's just not focused or caring about the project.  

Finding these square root people?  If you were to think about this a good bit.....as the chief....it'd be your duty to source them out.....talk with them, and to get a sense about why they feel so attached to the company, and what their drive is about.  Maybe you can put two young employees around them and get some 'magic-dust' off that one square root guy.  

When you don't grasp the square root crowd?  Well....you might keep hiring non-square root people to fill a role, and have twenty people doing the work of seven.  

1 comment:

LargeMarge said...

I owned a restaurant business for ten years.
.
Face-time is vital to cohesion...
... for cow-orkers and for customer retention.
An absentee owner can watch the net/gross numbers plummet...
... while the cow-orker turn-over numbers rocket.
Directly inversional.