The Two-Pizza Rule and Other Genius Management Hacks

Let’s cut to the chase. Want to run your business like a pro? Take a few pointers from some top entrepreneurs, like Jeff Bezos, Elon Musk, and Tim Cook. They’ve got some unconventional management tricks that you might want to steal.

Jeff Bezos has this genius idea: the two-pizza rule. If your team can’t be fed with two pizzas, it’s too big. Why? Because smaller teams outperform larger ones. Less bureaucracy, more direct communication, and much less nonsense that slows things down. It’s not just about numbers, though. Layers of management can bog things down. If you’ve got managers managing managers, you’ve probably got a problem. Keep it lean and mean.

But don’t just take my word for it. Look at your own teams and think about how you can streamline them. If you’re running a sales team with 30 people, break them into three groups of 10, each with its own manager. This way, you keep things competitive and ensure that best practices are shared among smaller, more agile teams. Trust me, the less bureaucracy, the better.

Leadership: Make the Tough Calls

Here’s the deal: being a leader means making the tough decisions. You can’t please everyone, and you shouldn’t try. Listen to your team, but at the end of the day, the buck stops with you. Remember, everyone wants to be a lion until it’s time to do lion stuff.

I had a partner once who got a bit touchy when I reminded him that leadership sometimes means making unpopular decisions. He wanted to please everyone, but that’s just not possible. As a leader, you must decide on a direction and get your team on board. If they can’t commit, it’s time to part ways. Your job is to lead, not to manage consensus.

Write It Down

Bezos banned PowerPoints and made his team write six-page memos for meetings. Why? Because writing things down forces you to think clearly and thoroughly. Plus, it creates a lasting record of your thought process. It’s not easy, but it’s worth it. So next time you’re about to make a big decision, skip the flashy presentation and write a detailed memo instead.

And don’t worry if you’re not a natural writer. The key is to communicate your ideas clearly and effectively. If you struggle with writing, consider recording a video or audio message and then transcribing it. The goal is to create an artifact from which others can reference and learn. This not only helps with clarity but also with accountability. Everyone knows what was decided and why.

Skip the Voice Memos

Voice memos? Just don’t. They’re a nightmare for the receiver. Sure, it’s easy for you, but think about the poor soul who has to listen to it. Stick to written communication—it’s clearer and more efficient. And if you must send a voice memo, at least provide a transcription.

We’ve all been there—stuck in a situation where you can’t listen to a voice memo. Maybe you’re in a meeting, on a plane, or just in a noisy environment. Written messages are universally easier to handle. They can be read quickly, searched for keywords, and referenced later. If you want to communicate effectively, respect your recipient's time and convenience.

Nano-Management: Proceed with Caution

Elon Musk calls himself a nano-manager, not a micro-manager. He wants to personally approve all new hires at Tesla. Sounds intense, right? Well, there’s a time and place for nano-management, but don’t let it define your role. Focus on big-picture strategy most of the time, and only dive deep when it’s absolutely necessary.

For instance, if you’re launching a critical new project that could define the future of your company, by all means, dive in deep. But once the project is up and running, delegate the day-to-day management to trusted team members. Nano-managing every aspect of your business is a quick way to burnout. Know when to zoom in and when to step back.

Meetings: Less is More

Meetings can be the death of productivity. Musk suggests walking out of a meeting if you’re not adding value. And he’s right. If you’re in a meeting that’s going nowhere, just leave. Encourage your team to do the same. Meetings should be efficient, productive, and only involve the people who need to be there.

I’ve walked into meetings with a dozen people discussing a newsletter. Seriously? It doesn’t take a village to review content. Trim the guest list, make the meeting shorter, and get straight to the point. Calculate the cost of each meeting by considering the hourly rate of everyone in the room. You’ll be shocked at how expensive unproductive meetings can be. Cut the fat and watch your team’s productivity soar.

Communication: Break the Chains

Encourage open communication across all levels of your organization. Employees should feel free to talk to anyone to get things done, but remember to respect the chain of command when it comes to tasking and decision-making. Open lines of communication can prevent siloed thinking and foster innovation.

However, be wary of letting open communication turn into a complaint fest. If someone has an issue, they should talk directly to the person involved or bring it up in the proper channels. Gossip and backdoor complaints can erode trust and create a toxic work environment. Foster a culture where issues are addressed head-on and constructively.

Know Your Stuff

Tim Cook grills his employees to make sure they know their stuff. And you should too. There’s nothing more frustrating than a team member who doesn’t have a handle on their responsibilities. Make sure your team is obsessed with their work and knows the ins and outs of their roles.

I’ve had to ramp up my grilling sessions lately, and let me tell you, the results are worth it. If your team can’t answer basic questions about their projects off the top of their heads, they’re not engaged enough. Encourage your team to dive deep into their work and know their numbers like the back of their hand. It’s a game-changer.

Personal Projects: A Balanced Approach

Google’s 20% time policy allows employees to spend a portion of their time on personal projects. It’s a great idea for fostering innovation, but it’s not for everyone. Assess your team and see if this could work for you. Just remember, it’s about finding a balance that doesn’t detract from the core business.

This kind of policy works great in tech environments where innovation is the lifeblood. But if you’re running a restaurant or a retail business, this might not be feasible. However, the principle can still apply. Encourage your team to think creatively about how to improve their work processes or customer experience. Give them some autonomy and see what they come up with.

There you have it—some unconventional but highly effective management tips from the big players. Implement them wisely, and watch your business thrive.

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