EXCLUSIVE: Paytm uses Jeff Bezos' secret for success — building 'two pizza' teams
- At the Business Insider Global Trends Festival 2020, Patym CTO for Payments Manmeet Dhody revealed that
Paytm’s secret to success is akin to billionaire Jeff Bezos— building ‘two pizza’ teams.
- According to Bezos, no matter how big a company gets, individual teams shouldn’t be larger than what two pizzas can feed.
- Dhodhy explains this may be one of the most efficient organisation designs for structuring teams, especially when using data on the cloud.
AdvertisementPaytm’s association with
The CEO of Amazon first unveiled the ‘two pizza’ rule back in its early days. His theory is that no matter how big your company gets, individual teams shouldn’t be larger than what two pizzas can feed. For Paytm, that means no more than six to eight people.
“That, in my mind, is one of the most efficient organisational designs for structuring teams,” Dhody told Amazon Internet Services’ Sachin Chawla during the Business Insider Global Trends Festival 2020.
#WATCH | What is a two-pizza team? Manmeet Dhody of @Paytm tells us what it means from the point of an organisation… https://t.co/ct2R0e17b6— Business Insider India (@BiIndia) 1603371296000
How does the ‘two pizza’ rule work?
According to Dhodhy, small and lean teams that are independent can efficiently exercise ownership over a particular domain. “They’re the single owners of that domain. Nobody else in the organisation owns that domain,” Dhodhy explained.
Not only does this improve agility within the organisation, but it also avoids issues like duplication of data or services.
One way to think about it is as though you’re at a huge party. If there are too many people around, it’s hard to connect with anyone at an individual level. The interactions are likely more shallow.
In comparison, if you're at a smaller house party, you could be sitting next to the host for hours and develop more meaningful relationships.
At its core, the problem is not about the sheer number of people per se — but the number of links between people akin to a multiplier effect, according to Harvard University’s Richard Hackman. The cost of coordinating, communicating, or even carrying out day-to-day tasks tends to snowball after breaching the ‘two pizza’ limit.
Another study of organisational behaviour indicates that larger the team, the people tend to get more overconfident. The authors explain that this is because a larger team size leads people to underestimate the time needed to complete the task at hand.
The catch is that if you have many small teams, they all need to be able to work together and access the company's shared resources to achieve overarching goals. And that's where the cloud comes in.
“The benefits of having a common data infrastructure team are just immeasurable,” said Dhody. According to him, if you don’t have a common data infrastructure, each team ends up building a data point instead of a data link. In the long run, it leads to a lot of wasteful expenditure for the company.
So while small teams make up the foundation of a company, it’s also crucial to have data flowing between them for success. This keeps data in motion and builds data lakes instead of individual silos.
EXCLUSIVE: AWS' India head believes 'time to value' is the only metric to measure innovation
Twitter CEO is facing fire from India after a map showed Jammu and Kashmir as part of China
EXCLUSIVE: HCL Tech is bringing employees back to offices — once a week to begin with
EXCLUSIVE: Billionaire Kumar Mangalam Birla is surprised by the rebound in infrastructure and construction in India
Popular on BI
- 60% people living in Delhi and Mumbai willing to relocate due to air pollution: Survey
- Making online payments safer – Here’s how to tokenise your card
- FPI boost: Adani Power, IDFC First Bank, Paytm see the highest increase in Sept holdings
- Minority shareholders must grin and bear it when promoters wash dirty laundry in public
- 10 Superfoods to soothe acid reflux and heartburn naturally