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From The Free On-line Dictionary of Computing (27 SEP 03) :   [ foldoc ]

  Conway's Law
       
           The rule that the organisation of the
          software and the organisation of the software team will be
          congruent; originally stated as "If you have four groups
          working on a compiler, you'll get a 4-pass compiler".
       
          Melvin Conway, an early proto-hacker, wrote an assembler for
          the Burroughs 220 called SAVE.  The name "SAVE" didn't stand
          for anything; it was just that you lost fewer card decks and
          listings because they all had SAVE written on them.
       
          [{Jargon File]
       
       

From Jargon File (4.3.1, 29 Jun 2001) :   [ jargon ]

  Conway's Law prov. The rule that the organization of the software and
     the organization of the software team will be congruent; commonly stated
     as "If you have four groups working on a compiler, you'll get a 4-pass
     compiler". The original statement was more general, "Organizations which
     design systems are constrained to produce designs which are copies of
     the communication structures of these organizations." This first
     appeared in the April 1968 issue of Datamation. Compare SNAFU
     principle.
  
     The law was named after Melvin Conway, an early proto-hacker who wrote
     an assembler for the Burroughs 220 called SAVE. (The name `SAVE' didn't
     stand for anything; it was just that you lost fewer card decks and
     listings because they all had SAVE written on them.)
  
     There is also Tom Cheatham's amendment of Conway's Law: "If a group of
     N persons implements a COBOL compiler, there will be N-1 passes. Someone
     in the group has to be the manager."
  
  

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