Small Teams Outperform Big Ones in Tech, Says Stan Co-Founder Vitalii Dodonov

The idea that a company's headcount equals its progress is a misconception, according to Vitalii Dodonov, Co-Founder of Stan. He says that having a small team isn't an automatic advantage, but rather a precondition for success, which comes from who's on the team. It's the people on the team that matter, not the team's size.

Vitalii Dodonov leads the technical vision and product innovation at Stan, where he's built a platform serving over 80,000 creator-entrepreneurs to $30 million in annual revenue with roughly 50 people. He argues that this is possible because the right people, given real ownership, consistently outbuild teams that are five or ten times their size. They're able to achieve this because they're given the freedom to operate.

But what makes a small team successful? According to Dodonov, it's not just about the number of people, but about the quality of the team members. He says that a small mediocre team is just a weak team, and that exceptional talent is necessary for success. A team with exceptional talent can achieve more than a large team with mediocre members.

“The logic is straightforward, rooted in graph theory. A three-person team has three connections between them. Any decision can happen on a single call. A team of four has six connections”

— the headcount grew 1.3x, but the communication complexity doubled. This shows that even a small increase in team size can lead to a significant increase in communication complexity.

As the team size increases, the communication complexity grows exponentially. For example, a team of nine people has 36 connections, which means that half the time that used to go toward building now goes toward alignment meetings. By the time you reach 100 people, there are 4,950 connections in the network, and you need managers to manage managers. This can lead to a lot of bureaucracy and inefficiency.

Dodonov advises companies to hire software generalists, not specialists, who can move across the stack, solve problems end to end, and adapt as the company evolves. He also emphasizes the importance of building a culture of ownership and autonomy, where A-players are given the problem, and the friction is removed, so they can operate. They won't be held back by unnecessary processes or management.

In Nigeria, where the tech industry is growing rapidly, this approach could be particularly relevant. Many startups are struggling to scale, and the idea that a small team of exceptional builders can outperform a large team could be a game-changer. It could help them to achieve their goals more quickly and efficiently.

So, what does this mean for companies looking to scale? According to Dodonov, it's essential to start with the smallest possible team of exceptional builders, remove friction, and let them operate. This approach may not be suitable for all companies, but for those in the tech industry, it could be a key to success. They won't have to deal with the bureaucracy and inefficiency that can come with a large team.

As the tech industry continues to evolve, it's likely that we'll see more companies adopting this approach. With the rise of remote work and the increasing importance of agility and adaptability, the idea that a small team of exceptional builders can outperform a large team is likely to become more relevant than ever. Companies that are able to adapt quickly and efficiently will be more likely to succeed.

The question is, will Nigerian startups take note of this approach and start to build small teams of exceptional builders? They don't have to follow the traditional approach of hiring a large team. The tech industry in Nigeria is ripe for disruption, and companies that are willing to think outside the box and challenge conventional wisdom may be the ones that succeed in the long run. They're more likely to achieve their goals and become successful.