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Systems & Organizations

What Dunbar's Number Destroys?

Most teams unwittingly sacrifice cohesion for growth.

2026-06-191 min read

The idea that bigger teams are always better is a misconception, as Dunbar's Number suggests that groups larger than 150 members begin to experience a decline in interpersonal relationships and overall performance. This is because as teams grow, the number of potential relationships between members increases exponentially, making it difficult for individuals to maintain meaningful connections. The mechanism behind this phenomenon is rooted in the limitations of human cognitive capacity, which can only handle a certain number of social connections. For example, a 200-person company like Valve Corporation, known for its flat organizational structure, has had to implement various measures to maintain a sense of community and collaboration among its employees. However, even with such measures in place, the company still faces challenges in ensuring that all employees feel connected and valued. The catch is that while Dunbar's Number provides a useful framework for understanding the limitations of team size, it does not provide a clear solution for how to mitigate its effects.

Key insights
Dunbar's Number suggests that teams larger than 150 members will experience a decline in interpersonal relationships and overall performance.
The mechanism behind Dunbar's Number is rooted in the limitations of human cognitive capacity, which can only handle a certain number of social connections.
Implementing measures to maintain a sense of community and collaboration among employees can help mitigate the effects of Dunbar's Number.
Why it matters

Ignoring Dunbar's Number can lead to a decline in team cohesion, resulting in decreased productivity and increased turnover.

Furthermore, as teams grow beyond Dunbar's Number, they often become more bureaucratic, leading to slower decision-making and a decrease in innovation.

Use this tomorrow
1
Count the number of direct reports each manager has in your organization and compare it to Dunbar's Number to identify potential bottlenecks in communication and collaboration.
2
Implement regular team-building activities that encourage socialization and collaboration among employees, such as weekly lunches or volunteer days.
Go deeper

The concept of Dunbar's Number was first proposed by anthropologist Robin Dunbar, who observed that the average size of a hunter-gatherer tribe was around 150 members. This number has since been applied to a variety of contexts, including business and social media. A key nuance to consider is that while Dunbar's Number provides a useful framework for understanding the limitations of team size, it does not account for the role of technology in facilitating communication and collaboration.

One limitation of Dunbar's Number is that it does not account for the role of hierarchy and organizational structure in shaping team dynamics. For example, a team with a flat organizational structure may be able to maintain a sense of community and collaboration among its members more effectively than a team with a hierarchical structure.