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Building & Strategy

Does Strategy Follow Architecture?

The shape of your organization determines its strategy.

Conway's Law states that the design of a system is mirrored in the organizational structure that created it. This means that the way a company is organized will influence the products and services it creates. For example, a 12-person team at a fintech startup, tasked with developing a mobile payment app, found that their own internal communication barriers were reflected in the app's user interface. The team's siloed structure led to a clunky, hard-to-navigate UI, which in turn affected user adoption. As the team reorganized into cross-functional groups, the app's design improved, and so did its user experience.

Organizational structure influences product design
Cross-functional teams can improve product usability
Conway's Law applies to both software and business processes

Ignoring this dynamic can lead to products that are overly complex or difficult to use, resulting in poor customer satisfaction and ultimately, revenue loss.

Furthermore, as companies scale, their organizational structure can become even more entrenched, making it harder to adapt to changing market conditions.

1
Open your company's organizational chart and map it against your product's architecture to identify potential mirrors of your organizational structure.
2
Conduct a workshop with your development team to re-design your product's architecture, taking into account the organizational structure that will be building and maintaining it.

Conway's Law was first proposed by Melvin Conway in 1967, and has since been widely observed in various industries, from software development to finance. The law suggests that the communication patterns and structures within an organization will ultimately determine the design of the systems they create.

The law has implications beyond product design, as it can also affect the overall agility and adaptability of an organization. By recognizing the relationship between organizational structure and system design, companies can make more informed decisions about how to structure their teams and processes.