Pattern 1.8

Structure Changed, Money Didn’t

A reorganization that leaves the old budget lines in place fails to change behavior.

In This Context

Systems reflect communication structures, which reflect organization structures, which reflect financial structures, which reflect patrons. Each link constrains the next, and the further toward the patrons you go, the harder change becomes. So it is tempting to change the org chart (or the technology) and leave the money alone. On the map this appears as a recent reorganization on the structure layer, with the old budget lines still underneath. The forces that shaped the old structure are still at work, and they push the system back.

Reorganizing is quicker and more visible than refunding.
Budget lines are owned by people who were not part of the reorganization.

Therefore

Change the funding lines along with the structure, or before it (Move the Money, Then the Org).

Consequently

A new structure with matching budgets has a chance to hold.
But left alone, the reorganization fails to change behavior; standardization efforts are resisted or quietly undermined.
But changing the money is harder and slower than changing the chart.

Seen In

Chapter 9, “Extending Conway’s Law”.