I like mirroring principles in business a lot. My two favorite ones in business are Conway’s Law (product structure follows organizational structure) and Chandler’s Law (structure follows strategy). In conversations about business in recent years, I’ve been adding two more principles to complete a loop of sorts: market structure follows product structure and strategy follows market structure. The whole thing is what I call the data-driven death spiral, and is the reason I’ve become a partisan on the question of product-driven versus customer-driven thinking. It operates through unimaginative leaders navigating entirely on the basis of market signals, which ultimately leads to businesses chasing their own tails. The only way a maturing business can break out of the death spiral is through the actions of a very strong leader. One capable of injecting a stiff dose of imaginative authoritah from the top.
That said, I’ve been sensing that my model is incomplete in a significant way. The biggest mirroring effect is the one it is easiest to miss: structure follows context. A context is the evolutionary environment (which is not the same as the competitive environment) within which a business grows, and which they shape to serve their needs as they grow. A city is the classic example of a context, but there are other kinds, such as ancient trade routes, or github (for purely virtual software teams). Contexts host businesses, but are not themselves primarily or necessarily businesses.
A context is the sum of all history rolled up into a present-day operating environment, like a canvas with an evolving painting already on it. A new business must be painted onto some such canvas, just as software must be compiled for a specific machine. Only dictators have the luxury of razing a living context, creating a blank canvas (a dumb thing to do in almost every case).
Let’s look at the example of Seattle to see what I mean.