Small Company Systems – The Rule of 150, Part 1

Submitted by mauzenne on Mon, 05/10/2010 - 12:44.

This cast describes The Rule of 150, how it affects the growth of small companies and organizations, and how to address it.

We've mentioned the Rule of 150 several times in our recommendations over the years. We've always hesitated to make it into a cast, because by itself it's just an idea. If we were just to describe it, it doesn't meet our test of actionable. Actionable-ness – now there's a word – is at the heart of all that we do.

But in a recent engagement with a smaller firm, we realized that we were making recommendations around it, as opposed to simply discussing it as a theory. And, in fact, we have been making recommendations around it to smaller clients. And here they are. Keep in mind that we believe this rule applies to larger organizations too… but in divisions and silos and groups and regions and plants and factories and warehouses and distributions centers and call centers, versus the entire firm. Just because you work at a 10,000+ person firm doesn't mean you haven't – or won't – experience the Rule of 150.

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