Increasing Capacity

What It Covers

37signals maintains 60-person team while simultaneously developing two new products plus Basecamp and Hey, using 2-3 person product teams and strategic hiring to increase capacity without scaling headcount proportionally.

Key Questions Answered

• •Team size optimization: Companies between 60-80 people hit an awkward phase requiring management layers that don't pay for themselves yet. 37signals found 60 people more productive than 80, as larger size created coordination overhead that slowed velocity despite 33 percent more headcount available.
• •Small product teams: New products launch with just 2-3 person core teams plus backend support. This approach enabled 37signals to release four products with only seven total employees early on, proving small focused teams outperform larger groups for product development and iteration speed.
• •Strategic hiring timing: Hire before feeling desperate pain, not after. 37signals adds one product designer now to prevent future bottlenecks when four active SaaS products launch, giving new hires time to onboard during a merge lane rather than during crisis when products stall waiting for coverage.
• •Senior talent leverage: Junior hires create net negative productivity initially as multiple senior people redirect time from shipping to mentoring. High-performing teams need experienced managers of one who require minimal oversight. Companies accelerate by letting go of people holding the group back, not just adding more bodies.