When a company grows to around 150 employees, strange things start to happen. This phenomenon, known as ‘Dunbar’s Number’, is named after British anthropologist Robin Dunbar, who theorises that humans can only maintain about 150 stable relationships. Beyond this number, it becomes harder to foster a sense of community and shared purpose.
Companies like Gore-Tex and Zappos have experienced this firsthand. When Gore-Tex exceeded 150 employees, it split its workforce into separate buildings to maintain a sense of intimacy and teamwork. Zappos, meanwhile, adopted a management system called ‘Holacracy’, which eliminates traditional job titles and hierarchies in favour of a more democratic system.
The 150-employee mark is not a hard limit but a warning sign. It signals a shift from a tight-knit group where everyone knows each other to a larger organisation where structures and processes become necessary to maintain order. The challenge for companies is to adapt to this change without losing their culture and sense of community.
This is not easy, as seen in the case of Zappos, which lost 18% of its staff after introducing Holacracy. However, the company believes the system will ultimately lead to greater innovation and agility. Despite the challenges, maintaining a sense of community and shared purpose is crucial for a company’s long-term success.
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