In his book published in 2000 called "The Tipping Point," Malcolm Gladwell tried to identify why some ideas are spread quickly among people while others do not and what factors influence that spread. One of the critical things he remembered was the benefits of keeping groups under 150 people (called "𝗧𝗵𝗲 𝗥𝘂𝗹𝗲 𝗼𝗳 𝟭𝟱𝟬").
He connected this to the work of British anthropologist Robin Dunbar, who suggested a cognitive limit to the number of people with whom one can maintain stable social relationships (and it is 150 - 𝗗𝘂𝗻𝗯𝗮𝗿'𝘀 𝗻𝘂𝗺𝗯𝗲𝗿). There is also another rule that impacts this, and it's called 𝗠𝗲𝘁𝗰𝗮𝗹𝗳𝗲'𝘀 𝗟𝗮𝘄. It says that the more people you add to a network, the harder it is to communicate effectively.
It takes work to maintain effective communication in large groups. Only so many relationships can be handled simultaneously by our minds. According to researchers, 𝘄𝗲 𝗰𝗮𝗻 𝗼𝗻𝗹𝘆 𝗺𝗮𝗶𝗻𝘁𝗮𝗶𝗻 𝗱𝗲𝗲𝗽 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀 𝘄𝗶𝘁𝗵 𝟱 𝗽𝗲𝗼𝗽𝗹𝗲 𝗮𝘁 𝗺𝗼𝘀𝘁 and a few less intense ones with another 15.
Gladwell uses this concept to illustrate why smaller groups can often be more effective and productive:
𝟭. 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝗰𝗮𝘁𝗶𝗼𝗻: In smaller groups, communication is often more accessible, transparent, and efficient. Everyone can know everyone else, leading to better understanding, less confusion, and more effective teamwork.
𝟮. 𝗥𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀 𝗮𝗻𝗱 𝗧𝗿𝘂𝘀𝘁: Smaller groups can foster closer relationships and trust among their members. With fewer people, creating deeper bonds that encourage collaboration, innovation, and shared ownership of goals and
outcomes is possible.
𝟯. 𝗢𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽: In smaller groups, each individual's role and contribution are more noticeable. This can lead to a greater sense of personal accountability, and people are less likely to "hide in the crowd."
𝟰. 𝗦𝗽𝗲𝗲𝗱 𝗮𝗻𝗱 𝗔𝗴𝗶𝗹𝗶𝘁𝘆: Smaller organizations tend to be more agile, and able to make decisions more quickly. They can adapt faster to changes and challenges, which can be advantageous in volatile or rapidly changing circumstances.
𝟱. 𝗖𝘂𝗹𝘁𝘂𝗿𝗲 𝗮𝗻𝗱 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝘆: A robust and unified culture is often easier to establish and maintain within smaller groups. Shared values and norms can be more easily understood and upheld when the group size is below 150.
Of course, larger groups can also be successful, but you might need different management and communication structures to be equally effective there.