Systems & Organizations
The Surprising Reason Why Large Teams Stumble and How to Avoid It
A staggering 85% of large organizations struggle with coordination, despite having the best talent and resources.
2026-06-131 min read
The concept of "small worlds" in graphs and networks, pioneered by mathematician Duncan Watts, can surprisingly be applied to organizational design. Watts' research showed that as a network grows, the average distance between any two nodes (people or teams) increases exponentially, leading to decreased coordination and efficiency. This phenomenon is known as "six degrees of separation" - a phenomenon that, when unmanaged, can cripple large organizations. A common mistake professionals make is assuming that scale-up and decentralization can only be achieved by sacrificing coordination. In reality, teams at Google, Amazon, and others have leveraged Watts' small-world principles to maintain high coordination through strategic "shortcuts" like regular check-ins, open communication channels, and clear decision-making processes. The implications for your team are stark: failing to manage scale can render your best talent ineffective.
Key insights
Small-world principles can be applied to organizational design to maintain high coordination and efficiency.
Strategic "shortcuts" like regular check-ins and open communication channels can help teams stay connected and productive.
Failing to manage scale can render even the best talent ineffective, leading to reduced productivity and innovation.
Go deeper
Watts' research on small worlds was first published in his 2003 book "Six Degrees: The Science of a Connected Age." His work built upon the 1967 research of psychologist Stanley Milgram, who first proposed the concept of six degrees of separation. The small-world model has since been applied to various fields, including sociology, physics, and computer science.
The small-world phenomenon can also be seen in the rise of decentralized, yet highly coordinated, social networks like Twitter and Reddit. These platforms have successfully managed scale while maintaining a strong sense of community and connection, serving as a powerful example for organizational design.