Welcome to Manager Tools. Today's show Small Company Systems, The Rule of 150. Part 2 of 2.

In today's show, we conclude our conversation on the Rule 150, how it affects the growth of small companies and organizations and how to address it.

Here we go. So let's talk about that a little bit. How does Dunbar's number or the Rule 150

affect small organizations and their growth?

Okay, simple enough, as companies and as organizations grow,

internal responsibilities grow. This is, I love making this argument because every time I say it on air,

people write me and say, yeah, I didn't even think about it,

but it's true.

If you have one employee in your company,

there are no relationships to worry about. It's one to the zeroth power, right? There are no relationships.

With a second employee, there is only one relationship. So you double in size and you only add one relationship.

But when you add a third employee,

you go from one relationship to three relationships.

In other words, you've tripled the number of relationships.

And when you go to four employees, you have one more employee.

You double then again the number of relationships, and so now you have six relationships.

Okay? And by the way way this is why I say that going

from two children to three children in the household is much harder than going

from one to two. It's because it's not because the number of people in the

house or kids, it's the number of people in the house or kids it's the number of

relationships between the kids that matters. I can vouch for that. Yeah. And then they have a

fourth kid and see how that works. Yeah, good, yeah.

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