Agile Wednesday

What Is the Spotify Model?

As an agile company, Spotify’s model champions the needs for collaboration, transparency, and simplicity, which makes it very attractive for other agile companies looking to make the methodology work for them.

Structure of the Spotify Model

Squads

A squad is described as the most basic unit of development, and is probably the most familiar for PMs who have worked in ‘typical’ agile teams. Each squad is designed to function like it’s own mini-startup, with all of the skills needed to build a product, (design, testing, engineering, etc).

Teams are self-organizing, and each squad can choose the framework that works best for them, which could be Scrum, Kanban, or whatever else that squad prefers. This allows teammates to work in a way that best suits them, maximizing their productivity and makes their working lives easier.

Each squad has their own long-term mission and owns a particular slice of the overall product. While leadership doesn’t dictate how squads work towards that goal, squads are encouraged to employ lean product principles like A/B testing and releasing MVPs. Squads have agile coaches to help them understand how to build in the right way, and a product owner who helps their teammates to prioritize their tasks.

Tribes

Squads are built to function by themselves, but that doesn’t mean they work in isolation. Squads are organized into relevant tribes depending on which part of the product they’re working on. While there's no official hierarchy, the tribe lead is assigned to each tribe, who ensures that everyone has what they need to thrive. Tribes are designed to include less than 100 people to make organization manageable, and informal gatherings are regularly held so that everyone has the opportunity to get up-to-date with what other squads are doing.

Crossover between squads is inevitable, which creates certain dependencies. These dependencies slow teams down, which is something that the model aims to cut down on as much as possible. This helps to prevent bottlenecks and keep things moving at speed.

Chapters

Collaboration is key, so it might seem strange that Spotify chops its workforce into smaller autonomous teams that don't seem to work together. That’s why the model introduces chapters.

Members of different squads with similar skills or who work on similar problems form cross-squad chapters. The chapters meet regularly to keep each other up to date on what they’ve been working on, and share solutions to common problems. This frequent knowledge sharing ensures that there is helpful communication between the squads and also helps the members of those squads to innovate together.

Guilds

Guilds are a little messier. Whereas chapters are based on the official role of an individual within their squad, guilds are based on more general areas of interest, such as testing. Everyone directly involved in testing will join the guild, but even those who don’t need it for their day-to-day job, but are simply interested in it, may also join.

The Spotify Agile Model has gained recognition for its success due to several key factors:

• Autonomy and Empowerment: Teams, known as “squads,” operate like mini-startups, with the freedom to make decisions and own their products. This autonomy fosters innovation and rapid iteration12.
• Strong Culture and Network: The model emphasizes a strong organizational culture and network, promoting collaboration and communication across teams. This helps maintain alignment and shared goals1.
• Cross-Functional Teams: Squads are cross-functional, meaning they include all the skills needed to design, develop, test, and release products. This reduces dependencies and speeds up the development process3.
• Focus on Quality and Accountability: Each squad is accountable for the quality of their product, encouraging a high standard of work and continuous improvement1.
• Adaptability: The model is flexible and can be adapted to different contexts and challenges, making it suitable for various organizations beyond Spotify.

Should We Implement The Spotify Model?

Pros:

• Increased Autonomy: Teams have more control over their work, which can boost motivation and innovation.
• Enhanced Collaboration: Cross-functional squads can improve communication and reduce bottlenecks.
• Flexibility: The model is adaptable and can be tailored to fit different organizational structures and goals.
• Focus on Quality: With squads owning their products, there’s a strong emphasis on maintaining high standards.

Cons:

• Cultural Fit: The model requires a culture that supports autonomy and trust. If your organization isn’t ready for this, it might face resistance.
• Coordination Challenges: With increased autonomy, ensuring alignment across squads can be challenging.
• Initial Setup: Transitioning to this model can be resource-intensive and may require significant changes in processes and mindset.

#agile #projectmanagementl key factors: