We’ve all experienced that not everyone makes equal contributions to business projects, households, or society.
🤯 But did you know there are actual mathematical models that explain this?
When it comes to productivity, there’s this intriguing thing called Price’s Law.
I stumbled upon it, and I’m absolutely fascinated by how it can have such a huge impact.
In this article, we will discuss everything about Price’s Law. We will explore fundamental questions and find out how this math can help us become more productive ourselves.
Let’s get started.
What is Price’s Law?
Price’s Law is a concept that provides insights into the distribution of productivity and success in various fields, particularly in the context of human endeavors such as academic research, business, and creative work. Derek J. de Solla Price, a British physicist, discovered that in various fields, like business and academia, a small minority usually generates most of the results.
Only a small fraction of individuals within a given group or organization is responsible for producing the majority of the output or results. But how small is that over-productive group?
Specifically, Price’s law states that approximately 50% of the work or contributions come from the square root of the total number of participants. That’s why, it’s also called Price’s Square Root Law.
What it means: If there are 100 people working on a project, approximately 10 of them will generate half of the total output. These ten employees do half the work.
Let that sink in.
Price’s Law can be illustrated in various fields:
- There are many examples of this universal law. Only a handful of composers generate 50% of classical music sales and only a small part of their works contribute to this success.
- In academia, for instance, a small number of researchers often produce the bulk of groundbreaking discoveries and scientific papers publications.
- In the business world, a handful of employees might be responsible for a significant portion of sales or innovation within a company. E.g. In sales, Price’s Law demonstrates the significantly uneven distribution of sales performance within the sales team.
- Similarly, in creative fields like music or writing, only a few authors or music records might dominate the market while the vast majority of artists struggle for recognition.
- Even in sports, Price’s Law applies. Most tackles in a football game are executed by the same few defensive players, and in basketball, most points are scored by the same few players.
Difference to Pareto’s Principle
Price’s Law sounds similar to the Pareto Principle, also known as the 80/20 rule, which states that roughly 80% of effects come from 20% of causes, highlighting the unequal distribution of inputs and outputs in many situations.
Price’s Law is more focused on social group settings. Additionally, the Pareto Principle assumes a constant 80:20 ratio regardless of group size, whereas Price’s Law shows that the ratio varies with group size, resulting in a larger discrepancy in larger groups.
Is Price’s Law Real?
Kind of but no.
It’s more like a rule of thumb. This part may get more abstract here but stay with me:
Price’s Law is a model, a concept, and an idea. It is not reality. A model is a substitute and similar to what it represents. We find models everywhere but it would be wrong to mistake them as reality.
- Think of a baseball game’s box score. It is a model, it’s not the game itself, it is a snapshot that tells you some important stuff, such as who won, the final score, and who pitched.
- Another example is the statistical average which is just something close to what can be roughly expected. In the US, the average male is 1.77 m tall (which is like 5.8ft). But does that mean every male in the US is this tall? Nope. It is just a model, not reality itself.
- One more example is photographs. They are models of reality but not reality itself.
“All mathematical models are approximations of reality. They are not reality itself”, the Institute of Mathematics and its Applications says it beautifully: Don’t Eat the Menu.
The great thing is that Price’s Law doesn’t have to be “real” in order to help us navigate a complex world.
So, let’s now get to the cool part.
How Does Price’s Law Help An Individual To Boost Productivity?
In the individual case, it doesn’t matter whether you are a top performer in a certain group or not. Most often, you will be both a high achiever in some areas and not so much in other areas.
Someone may be the number one salesperson in your company but not as successful when it comes to maintaining long and healthy relationships. Or they may be a superstar in your local tennis club but a little bit of a laggard when it comes to doing schoolwork, or maybe a straight-A student but not so productive when it comes to doing household chores.
With that said anyone in any situation can apply Price’s Law to boost productivity in the areas you’d like: a work project, a passion project, a family/household issue, studying, your fitness, your finances, home improvement, volunteering – you name it.
Applying Price’s Law to boost individual productivity involves recognizing the principle’s essence—that a small portion of efforts often leads to the majority of results—and leveraging it to your advantage.
Understanding how to apply Price’s Law in your daily life and work can lead to tangible improvements in your efficiency and effectiveness. So, what exactly can you do?
Focus on the Most Impactful Tasks
Figure out which tasks matter the most for your goals. Put your time and effort into these, as they’ll boost your output the most, making you and your efforts more productive.
Let’s say you’re looking to get in better shape. Simply doing random exercises and drinking protein shakes will not get you there, at least not as quickly or effectively. If your goal is to build muscle and lose body fat, there are more and less effective approaches to take. It varies from person to person, but maybe you’re consuming too much sugar or overdoing it with cardio or your strength training isn’t balanced, etc.
Personally, I found the most impactful thing for me to get in shape through my own research, trial and error and some grit.
How do you find out which are the most impactful tasks? Next to a trial and error approach, in almost any part of life, you can get professional help or do research yourself to get to the answers faster.
Find what it is that will get the ball rolling fast and what will keep adding to your progress continuously. You should be able to put in that effort for a long period of time. Remember, life’s more like a marathon than a sprint.
So, invest your time, money, and energy where they will have the most substantial impact. This may mean reallocating resources from low-impact areas to high-impact ones.
Fail, Learn, Adapt, and Innovate
When it comes to ramping up your productivity, it’s also about embracing a learning and adaptation mindset instead of dwelling on mistakes. Think of missteps as opportunities to fine-tune your strategies and get even more focused and productive.
Here’s the deal: don’t be afraid to act fast, even if it means making a mistake or two. In fact, mistakes help you learn and adapt faster. Each lesson you pick up along the way gets you closer to that high level of productivity.
Because the power to adapt, innovate, and create change is your golden ticket to more focus, more output, and success in the long run. Yet again, focus on what is impactful, learning and adaptation.
Manage Your Time Wisely
Time is a finite resource that demands our attention. Managing your time effectively means being intentional about how you use it. It includes planning and scheduling your priorities, eliminating time wasters, building good habits, teamwork and collaboration, and more.
The most tangible way of managing time wisely is by using a planner or calendar to keep track of things.
Only a few people have an infallible memory that can store every task you have on your plate. You manage your calendar at work, so why not for other areas of life?
This sets the stage for more productivity and accountability in everything you do.
Automate, Minimize, or Simplify Other Tasks
When it comes to reclaiming your time and energy, identify those non-value-added tasks and explore automation, simplification, or even elimination options.
Are you eager to spend more quality time at home whilst also prioritizing your productivity at the office? One way to achieve this is by automating those repetitive, non-value-added tasks in your workplace. Why not automate some of those household chores that gobble up precious time?
Are fitness goals your priority now? Or making more money? Then, maybe you need to reduce eating out every day and minimize distractions.
Life is a constant juggling act. Between work, family, and personal goals, there’s often not a moment to spare. It’s essential to recognize that you can’t do everything simultaneously with maximum productivity.
By minimizing, automating, or simplifying non-value-adding tasks, you will experience higher productivity and see better results.
Collaborate With or Learn From Diverse Individuals
Whether it’s connecting with a mentor who can provide guidance, seeking advice from experts in your desired field, or engaging in collaborative ventures, embracing the knowledge, support, and wisdom of diverse minds is a remarkable way to accelerate your progress and become more productive.
You don’t have to go it alone, and in fact, some of the most significant leaps in productivity and personal growth come from learning from others who have blazed the trail before you. So, don’t hesitate to reach out to people you look up to, collaborate with other people, and soak in the wealth of knowledge that diverse individuals can offer.
How Does Price’s Law Help A Group To Boost Productivity?
Understanding Price’s Law can guide the establishment of your organizational framework, incentive systems, culture, processes, and strategic planning.
This knowledge about Price’s Law enables the harnessing of key contributors’ potential, ensuring fair structures, and boosting overall productivity through collaborative and cultural efforts. In a team or organization, these three things are crucial to boost productivity:
- Identify, nurture, and reward the high-performers
- Support the lower-performing groups to increase productivity
- Increase the share of high-performers
Let’s look at how this can be achieved.
Focus on High-Value Tasks
Much like the way individual productivity hinges on effective prioritization, optimizing group or organizational efficiency requires the identification and prioritization of high-value tasks. Focusing on value-adding activities serves to enhance profitability and sustain competitiveness over an extended horizon.
It sounds like a no-brainer to align the collective endeavors of the team or organization with tasks that yield the most substantial impact and outcomes. However, most corporations lack the ability to effectively prioritize. An example is teams and business areas becoming overly accustomed to their internal processes and practices that they may find challenging to adopt an objective and fresh perspective.
For instance, new methodologies like agile project management and the like have appeared to help organizations and teams re-assess their setup more often.
Recognize Key Contributors
Start by identifying those individuals who consistently deliver exceptional results within your group, team, or organization. They are the ones who frequently stand out due to their outstanding contributions. This can be determined through performance evaluations, metrics, or peer recognition.
Here are some examples of how key contributors can be retained and leveraged within a company:
- Compensation, Recognition, and Rewards: Implement a robust recognition and rewards program that acknowledges the contributions of key contributors. This can include bonuses, promotions, public recognition, or special awards to motivate them to continue their exceptional work.
- Mentorship and Leadership Opportunities: Provide opportunities for key contributors to mentor and lead others. This not only leverages their expertise but also helps groom them for leadership positions within the company.
- Flexible Work Arrangements: Offer flexible work arrangements, such as remote work options or flexible hours, to accommodate the preferences and needs of key contributors. This can improve their work-life balance and job satisfaction.
- Challenging Projects: Assign key contributors to challenging and high-impact projects that align with their strengths. This keeps them engaged and motivated while ensuring that critical initiatives are handled by the most qualified individuals.
- Work-Life Balance Support: Offer resources and programs that support work-life balance, such as wellness programs, employee assistance programs, and family-friendly policies.
- Performance Culture: A strong emphasis on results, accountability, and continuous improvement. High achievers are drawn to organizations and environments where their efforts and contributions are recognized, and rewarded, and where they can continuously challenge themselves to excel.
Foster A Culture of Collaboration
As a business, it’s crucial to ensure productivity across all areas of your organization. While high-performing individuals often have a natural inclination to gravitate toward one another, fostering mixed teams is a strategic approach that can yield substantial benefits.
Mixed teams that include high performers alongside colleagues with varying productivity levels create a balanced dynamic. High performers can tend to be “loners” or “alpha” individuals who may not work well with diverse people, but by placing them in collaborative structures and fostering a culture of teamwork, you can nurture their leadership potential and encourage them to develop strong teaming abilities whilst supporting the lower performing individuals to learn from and work with high-performers.
To create an environment where this approach thrives, it’s essential to foster an overall organizational culture that values respect, inclusion, and diversity.
Provide Development Opportunities
Providing development opportunities is a pivotal strategy for increasing the productivity of all teams and individuals within an organization.
These can take various forms, such as workshops, training programs, or cross-functional projects. These initiatives enable teams to acquire new skills, stay updated on industry trends, and work more cohesively. As teams grow and evolve, their ability to tackle complex challenges and deliver outstanding results also improves.
Moreover, development opportunities contribute to increased job satisfaction and engagement. Providing development opportunities is a win-win strategy for organizations and individual team members.
Price’s Law provides a thought-provoking perspective on the distribution of productivity, emphasizing that not all individuals contribute equally.
It encourages us to recognize that we all have unique strengths and areas where we excel.
To truly boost our efficiency and effectiveness, we must focus our efforts on the tasks that matter most, whether in our careers, personal lives, or health journeys.
Let’s make each step count in our pursuit of a more productive and fulfilling life.
Thanks, De Solla Price!