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Why No Company Should Have More Than Seven Employees

Jarkko Laine has an interesting entry on the ideal size of an organization.

So why not also as a limit for company sizes? Here are seven minus two reasons why your company should never grow beyond seven people.

1. Less hierarchies

2. More participation

3. A better understanding of the big picture

4. A feeling of ownership

5. Closer relations

Go read the entire article here.

IMHO small company is necessary but not sufficient. My past experience indicates that,

  • Company has to be small. 25-50 is my personal preference.
  • CEO & COO should be nice people, the organization culture will be a mirror of their values.
  • People should be hand-picked by the senior management, hire only those who fit into the organization culture (else it deteriorates)
  • People should be masters @ their trade. Inefficiency and fear are the root cause of all organizational politics.
  • You should have mentors who you can look up to
  • All said, if you have bad manager you are doomed – that to me is the most important factor.
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