Price's Law for Managers

Derek Price's Law — A Vital Insight for Leaders

Derek Price, a distinguished British physicist and information scientist (1922-83), discovered a unique correlation between the number of research authors in an academic institution and the volume of their published papers. According to Price's observation, if there are 'n' researchers in an institution, half the papers are produced by the square root of 'n'. This intriguing relationship extends beyond academia, and is seen frequently within business organizations as well.

Consider a company with 25 employees. It is highly probable that just five of them are contributing to 50% of the work. Similarly, in an organization with 400 employees, it's likely that about 20 individuals are driving nearly half of the company's productivity.

Intriguingly, this minority of high achievers often goes unnoticed or is seen as a potential threat by management. These 'super-workers' are focused on the task at hand and do not indulge in office politics for recognition or acclaim. Their prime objective is to accomplish their work effectively, not to placate managerial egos. They are invariably idea-rich individuals, frequently exasperated by the slow pace, lack of innovation, and resistance to change in the workplace.

However, even if you're not an extraordinarily savvy manager, you can excel by identifying these high performers within your organization, acknowledging their efforts, rewarding their accomplishments, and most importantly, lending an ear to their insights and suggestions.

Renowned psychologist Jordan Peterson elaborates on this in his lecture linked below.