Parkinson’s Law and Plate Size: How Restricting What’s Available Sparks Innovation

Parkinson’s Law, coined by C. Northcote Parkinson in the 1950s, states that work expands to fill the time—and resources—available. The same principle shows up in the way most people unconsciously use toothpaste. With a full tube, big globs go on the brush without thought. When the tube is almost empty, people become experts at squeezing every last drop, even inventing clever tools or biting down to extract one more brushing.

Behavioral economists dub this 'induced demand.' If we have more, we use more—whether it’s time, money, or resources. The business analogy: a bigger operating account leads to unconstrained expenses, while a restricted account sparks frugality and inventive problem-solving.

In recent field studies, companies that limited weekly or biweekly operating funds (through artificial 'plates') consistently found new ways to serve clients better at lower cost. Managers who resisted the temptation to raid reserves discovered faster, cheaper approaches and often improved morale through staff collaboration. Limiting what’s available, then, doesn’t just cut costs; it directly drives innovation and improves overall performance.

Test the science for yourself: after setting aside your profit and reserves, restrict what you move into your main spending account, keeping it well below the full balance. Operate as if this smaller plate is all you’ve got, refusing to cheat or borrow from elsewhere. Each time you’re squeezed, instead of caving, brainstorm creative ways to make it work—ask partners to give input, hunt for free or lower-cost solutions, delay non-essential expenses. Log every new tactic you try and watch your resourcefulness (and profitability) grow. See what happens after even one month of living with less—and saving more.