Ester Eomois
Lecturer in Management at EBS, trainer, and development coach; long-standing leader of the Association of Entrepreneurial Women
For inspiration, let’s consider how Jeff Bezos built Amazon, following a simple yet impactful principle: the "Two Pizza Rule."
Jeff Bezos believes that if two pizzas can’t feed a team, it’s too large. This principle helped shape Amazon’s culture of innovation and growth-oriented thinking. Bezos found that smaller, autonomous teams achieve more than large, bureaucratic structures. A large dining table is the upper limit for the number of people who should be in a team.
Why Do Small Teams Work Better?
As leaders, we must ask ourselves: does this principle hold true? If so, what is our role in implementing it? Here are some reasons why smaller teams are more effective:
- Faster Decisions: Less hierarchy means decisions don’t get stuck waiting for endless approvals.
- Clearer Communication: Fewer people mean less confusion and more efficient information exchange.
- Greater Accountability: Every member makes a meaningful contribution, which helps avoid “groupthink” and passivity.
Applying the Two Pizza Rule at Amazon
At Amazon, this principle was the foundation for team structures called “two-pizza teams.” Typically consisting of 5–7 members, these groups were given independence to develop and execute their product or project. Examples include:
- Alexa was developed by a small team encouraged to experiment.
- Amazon Prime emerged from a focused team tasked with boosting customer loyalty.
- AWS (Amazon Web Services) started as an internal idea and has grown to become Amazon’s most profitable business unit.
What Have We Achieved Through Team Efforts?
It’s well known that smaller teams foster deeper connections and better collaboration. Members also feel a greater sense of responsibility, which increases motivation and accelerates innovation. Would this approach work in our organisation? How can we, as leaders, implement it?
The Leader’s Role in Applying the Two Pizza Rule
- 1. Applying the Two Pizza Rule largely depends on the leader, whose role includes:
- 2. Setting Clear Goals: every team must know exactly what they are responsible for.
- 3. Supporting Autonomy: leaders should avoid micromanaging and instead provide the freedom and tools needed to solve problems.
- 4. Building a Strong Culture: teams need to feel they are part of a larger vision.
Could This Work in Estonia?
This is a question every leader must answer based on their organisation’s specifics. For Estonian leaders, it’s important to understand that the Two Pizza Rule isn’t just about small teams but also a shift in leadership culture. It requires trust, a willingness to grant autonomy, and the ability to act as a supportive guide rather than a controlling authority.
Points for Leaders to Consider:
- How can you choose a leadership style that supports both the team’s and your own development?
- How can you maintain your balance and effectiveness as a leader?
- What practical steps can you take to implement a culture that supports autonomy and innovation?
In Summary:
The Two Pizza Rule demonstrates that the strength of small, autonomous teams lies in their flexibility, focus, and sense of accountability. As leaders, we can apply this approach by supporting our teams, creating space for innovation, and focusing on results that generate long-term value.
Further Reading for Those Interested:
Learn more about Amazon and "two-pizza teams" on the official AWS website.
Delve into the secrets of successful teams in Daniel Coyle’s book The Culture Code: The Secrets of Highly Successful Groups.
If you want to gain deeper knowledge of leadership and innovation in the digital age, we recommend exploring the Leadership in the Digital Era programme at EBS, starting in March 2025.
