How Jeff Bezos’ 'Two-Pizza Rule' Can Help You Become Financially Successful
At some point, you've probably been in a meeting and realized that you really didn't need to be there or could point to some people whose time would be better spent elsewhere. Jeff Bezos, billionaire entrepreneur and investor, knows just how valuable time can be and established a rule to help his company make the most of it -- the "two-pizza rule."
Bezos' famous "two-pizza rule" essentially states that any meeting Amazon has shouldn't include more people than two pizzas could feed. Based on the hunger level of those in the meeting and the type of crust, this can mean between five and eight people.
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Now, this didn't mean that Jeff Bezos constantly bought pizzas for his teams -- just that he focused on keeping teams small so they can collaborate and move quickly without costing the company unnecessary money.
For leadership, there is also a monetary reason for keeping meetings small. If meetings include people who really don't need to be there, the company is paying them to do something that isn't moving the company and the mission forward.
But what does this have to do with you?
Even though he has since stepped down as Amazon's CEO, Bezos' rule can be applied to a variety of things. Here are a few ways to take the two-pizza rule and apply it to your life to find career and financial success.
Assess the Cost and Your Time
Part of the two-pizza rule is keeping teams small so they can move quickly, but another piece is that paying people to be in meetings where they're not needed takes them away from doing their actual job, which ultimately costs the company money. After all, time is money.
To use this idea in your own finances, it pays (sometimes literally) to ask how much time a purchase will cost you. For example, say you make $15 per hour and want to buy a coffee from Starbucks. A $7 coffee will cost you about a half hour's worth of work. A $150 electric bill costs about 10 hours of work.
Breaking it down this way can help you determine which purchases are really worth it to you and which purchases you can go without in favor of saving or investing.
Maintain Focus
Bezos realizes that large meetings tend to wander off task and meander into unrelated topics. You can use that idea in your own life.
While you may not be able to control everything that comes at you in your life and your finances, you can often choose where to maintain your focus. Choosing to focus on things that will move your career and finances toward success can move the needle faster than if you become distracted by things that pull you from your path.
Pivot Quickly
One of the advantages of working with small teams, according to Bezos, is their ability to pivot quickly and collaborate efficiently. Using this principle, you can maintain focus where it's necessary; also, because you're in control, you can pivot quickly and shift your focus to a new goal or venture when one presents itself, potentially leading to more career and financial success.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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