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It was Samuel (as Jeremy later repeatedly acknowledged) who conceived the basic idea of a circular building at the hub of a larger compound as a means of allowing a small number of managers to oversee the activities of a large and unskilled workforce.

He supplemented the supervisory principle with the idea of contract management; that is, an administration by contract as opposed to trust, where the director would have a pecuniary interest in lowering the average rate of mortality.

In 17, Bentham travelled to Krichev in White Russia (modern Belarus) to visit his brother, Samuel, who was engaged in managing various industrial and other projects for Prince Potemkin.

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The Panopticon was intended to be cheaper than the prisons of his time, as it required fewer staff; "Allow me to construct a prison on this model," Bentham requested to a Committee for the Reform of Criminal Law, "I will be the gaoler. that the gaoler will have no salary—will cost nothing to the nation." As the watchmen cannot be seen, they need not be on duty at all times, effectively leaving the watching to the watched.

According to Bentham's design, the prisoners would also be used as menial labour, walking on wheels to spin looms or run a water wheel.

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