Conway’s Law Explained

Have you ever wondered why some once-prominent companies now find themselves less popular, even overshadowed by smaller competitors?

A prime example of this shift is Facebook. Although Facebook was the heartthrob of the 2000s, major issues like internet privacy and possible leaking of user records have made users more suspicious. Only 18% of American Facebook users think the platform protects their data and privacy.

To understand why a company like Facebook's reputation has experienced a significant decline in recent times, let's delve into a concept you may not be familiar with — Conway's Law.

What is Conway’s Law?

Conway's Law is a business concept that reveals the connection between a company's internal structure and the results it delivers to end users. The core idea is that the way members of an organization communicate and collaborate will shape the design and character of the systems and projects it produces.

(It is important to note that Conway’s Law is not an actual law but rather a causal link between an organization's communication structure to its output.)

This concept was introduced by Melvin E. Conway, a computer programmer, in 1968, with his original statement:

Although Harvard Business Review rejected Conway's initial paper due to a lack of practical implementation, the concept gained prominence in 1971 when Fred Brooks published his influential book The Mythical Man-Month.

While Conway's Law is often associated with software architecture, it extends to various technical fields. Its significance lies in emphasizing the critical role of communication – an often-overlooked aspect. This principle highlights how interactions and collaborations between individuals across different departments within an organization significantly influence the success or failure of projects.

Ultimately, Conway’s Law underscores the value of suggestions, teamwork, and diverse inputs over independent assumptions, ultimately shaping the organization's outcomes.

(Know the difference: outputs are not outcomes.)

Components & benefits of Conway’s Law

There's two main components of Conway's Law: ace these, and the benefits will be clear.

Communication & collaboration between teams

Conway's Law emphasizes the need to break down silos within an organization. It encourages individuals with specific expertise to share their knowledge with their teammates, promoting open and timely communication.

This enhances team bonding and contributes to better outcomes. More specifically, enabling smarter communication and intentional collaboration can:

• Foster innovation culture.
• Ensure everyone on a team is aligned with the system and goals they are working towards.
• Reduce misunderstandings, double work and rework.
• Improve productivity and efficiency.

Effective organizational structure

Conway's Law aims to align the organization's structure with the goals of system development, facilitating necessary changes that can transform the organization into a more effective and efficient one. A well-aligned organizational structure is crucial:

• Achieving business goals.
• Reflecting the organization's personality.

Consulting employees for input on improving the organization's structure is a valuable practice. For example, it played a key role in breaking down silos and increasing innovation at the Australian Centre for the Moving Image (ACMI); this organization is a free public museum that had staff within specialized fields. These specializations created a form of siloed organization without much transparency or openness.

In 2019, through majority consent, the entire institution went through a bottom-up staff restructure. The result redesigned the organization’s:

• Internal systems and processes
• Customer & visitor experiences
• Physical spaces

Through the adoption of the Conway’ law in this organization, they were able to break barriers, become more innovative and deliver enhanced customer value.

(Related reading: Moore’s Law & Amdahl’s Law.)

Examples of Conway’s Law

Conway's Law's effectiveness is supported by numerous case studies demonstrating why some projects succeed while others fail. Netflix, Spotify, and Amazon are all testaments to the effectiveness of Conway’s Law. Understanding and implementing this law can help organizations avoid common pitfalls, leading to improved project outcomes and a more prominent position in their respective industries.

Here are some excellent case studies of reputable companies:

Spotify Squad Model: The Spotify model which organizes teams into Squads, Guilds, Chapters, and Tribes, promotes cross-functional collaboration and communication. This has contributed significantly to its leading status in audio streaming.

Amazon's Two Pizza Rule: Amazon held a rule that no meeting should be so large that two pizzas wouldn’t be enough to feed its members. This rule encourages effective communication and work practices, instrumental in its growth and revenue.

Netflix’s Employees culture: Employees in Netflix adopt a user experience based approach. Their goal is to align their efforts through communication and collaboration to develop a highly cohesive platform with great user experience. Their organization’s structure includes small, independent teams with a high-level freedom and independence to pursue their goals.

Drawbacks of Conway’s Law

Now, like most things in business, there are certain challenges. Conway’s Law has a couple.

Lack of flexibility

While it's essential to implement Conway's Law thoroughly, too much rigidity can be detrimental. Adhering strictly to this concept may compromise your primary goal of fostering communication, resulting in a lack of flexibility within the system. It's crucial to strike a balance to avoid such issues in your organization.

Increased complexity

To encourage collaboration and communication between different departments, confusion may arise when merging teams that specialize in different areas.

Wrapping up

Conway’s Law is not a one-size-fits-all solution. Simply adopting another company's approach can lead to disastrous results. It's advisable to carefully implement the complicated details of Conway's Law tailored to your organization's structure which can help you reap its benefits while avoiding potential pitfalls.

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