I believe the problem he outlines is that you have 50% of the work being done by a small minority of people. As the company scales up in size, this problem exacerbates. For example 50% of the work is done by 10 people in a company with 100 employees. If that company grows to 1000 employees you now have 31 or 32 people doing 50% of the work. That leaves the other 50% of the work being done by by 968-969 people. This is a major problem not only in productivity but also an issue for people who argue for equality of outcomes because as Price's Law shows people are not equally productive so equality of opportunities is a far better option of labour policies. Hope that helps.
Stacy Liddell oh. So he wasn’t criticizing it? But saying the outcomes of the law are the problem? Wouldn’t your second example be 100 people doing 50% of the work of the 1000?
@@destroytheboxes yes exactly, he is saying the problem is the results the law produces. Price's law states that the square root of the total amount of employees do 50% of the work. The square root of 100 is 10 (example 1). Whereas the square root of 1000 is roughly 31 or 32. So as the organisation grows larger, a smaller proportion of the employees do most of the work. Huge problem.
@@destroytheboxes not a problem. The problem with Price's Law and the Pareto Principle (another similar law) is that they seem to be universal laws of nature. I have not come across solutions that explain how to mitigate its effects. I have only seen information on how you could use it to your personal advantage by taking ownership of your role in a business and being one of the productive members. Sorry I couldn't be much more helpful.
Does anyone know the top performer in Steve Jobs company or for that matter the top performer / scientist / engineer in Elon Musks companies? No sir. Business personalities just like corporate careers are over rated. Don't kill yourself with 80 hour weeks. Smell the roses while you are still alive. Life is brief
The square root of 1000 is 32 not 100. These laws are not mathematically exact or even particularly valid, but are warnings to watch out for massive organizations like government where of 2 million employees perhaps 200,000 are efficient and less than 1 million are needed.
What were the problems? Never heard any. Other than 2/4 where it doesn’t apply. I didn’t hear you explain a problem.
I believe the problem he outlines is that you have 50% of the work being done by a small minority of people. As the company scales up in size, this problem exacerbates. For example 50% of the work is done by 10 people in a company with 100 employees. If that company grows to 1000 employees you now have 31 or 32 people doing 50% of the work. That leaves the other 50% of the work being done by by 968-969 people. This is a major problem not only in productivity but also an issue for people who argue for equality of outcomes because as Price's Law shows people are not equally productive so equality of opportunities is a far better option of labour policies.
Hope that helps.
Stacy Liddell oh. So he wasn’t criticizing it? But saying the outcomes of the law are the problem? Wouldn’t your second example be 100 people doing 50% of the work of the 1000?
@@destroytheboxes yes exactly, he is saying the problem is the results the law produces. Price's law states that the square root of the total amount of employees do 50% of the work. The square root of 100 is 10 (example 1). Whereas the square root of 1000 is roughly 31 or 32. So as the organisation grows larger, a smaller proportion of the employees do most of the work. Huge problem.
Stacy Liddell thanks for clearing up for me. What’s the solution?
@@destroytheboxes not a problem. The problem with Price's Law and the Pareto Principle (another similar law) is that they seem to be universal laws of nature. I have not come across solutions that explain how to mitigate its effects. I have only seen information on how you could use it to your personal advantage by taking ownership of your role in a business and being one of the productive members. Sorry I couldn't be much more helpful.
I believe, it would have better been made into "the Problems of Price's Law" not "with", or a clearer wording.
You have a point there.
Was a good one. Thanks. Though I might be biased, because it is what I thought/think too.
Thank you!
Does anyone know the top performer in Steve Jobs company or for that matter the top performer / scientist / engineer in Elon Musks companies? No sir. Business personalities just like corporate careers are over rated. Don't kill yourself with 80 hour weeks. Smell the roses while you are still alive. Life is brief
@Alx retiring early is the real game 😂😂🤣
Let's analyze it in another way. Your brain controls most of your activities, but your arms are equally important.
You got the square root of 1000 wrong in the beginning… If it was 1000 employees roughly a little bit over 30 of them would be doing 50% of the work
Well that explains why that aircraft I designed never got off the ground . . . .
@@espiriteur you did the world a favour for not becoming an aironautical engineer
@@fransmulder9326 and you did a favour to the world by not becoming a copywriter
@@espiriteur Did you use too many bricks?
The square root of 1000 is 32 not 100. These laws are not mathematically exact or even particularly valid, but are warnings to watch out for massive organizations like government where of 2 million employees perhaps 200,000 are efficient and less than 1 million are needed.
Quite correct, on all counts. (Not sure where my head was when I did that mental calculation . . . )
You talk like an engineer. This is a good thing. There should be more. Policy is too important to be left to Politicians.
I forget what all I said in this video, but I was, in fact, an engineer for 25 years
Good video.
3 Soros books, wow!
Confession time: I've only read one of them (to date)