It's an old business maxim, oft-repeated in the engineering world: the bigger your team is, the less productive each individual worker is. Everybody in the software business recognizes this as one of the fundamental challenges to scaling a software company. The company I'm working for is facing this very challenge right now, as we are growing very rapidly (and today we're packing to move into our new, much bigger building).
But I've never seen anyone seriously attempt to quantify this effect, until I read this post. Interesting stuff. And a little scary...
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