Why did the Spotify model fail?

Spotify model or the Agile at Scale model was introduced by Spotify as a way to address the challenges that come with scaling Agile beyond a few teams. However, despite its popularity and initial success, the model has also faced some criticism and failures. Here are some reasons why the Spotify model failed:

1. Lack of contextualization: The Spotify model was designed to work for Spotify, based on its unique culture, structure, and business objectives. However, other organizations tried to apply the model without contextualizing it to their own needs and environment. This lack of contextualization often led to confusion, inefficiencies, and failure. It is essential to understand that every organization has unique needs, goals, culture, and structure that require a tailored approach. While the Spotify model can be an excellent source of inspiration, organizations should avoid blindly copying it and should instead focus on adapting it to their own context.
2. Too complex: The Spotify model is a complex and intricate framework that involves multiple teams, tribes, chapters, and guilds. It requires a high level of coordination, collaboration, and communication, which can be difficult to achieve, especially for smaller organizations or those with less experienced teams. While complexity can be beneficial for larger organizations with mature Agile practices, it can be overwhelming and confusing for others. Therefore, organizations should carefully assess their level of maturity, complexity, and needs before deciding to adopt the Spotify model.
3. Not Agile enough: Despite its name, the Spotify model has been criticized for not being Agile enough. Some experts argue that the model is too rigid, bureaucratic, and hierarchical, which goes against Agile values and principles. This can lead to a lack of innovation, creativity, and responsiveness. The Spotify model's focus on roles, processes, and rituals can sometimes overshadow the Agile values of individuals, interactions, and outcomes. Therefore, organizations should ensure that they strike a balance between structure and flexibility, processes and people, and roles and responsibilities.
4. Resistance to change: The Spotify model requires a significant shift in organizational culture, structure, and mindset, which can be challenging to achieve. Some teams and individuals may resist the change, leading to a lack of buy-in, engagement, and adoption. Changing the way an organization works requires more than just adopting a new framework. It requires a deep understanding of the organization's culture, values, and beliefs, as well as strong leadership, communication, and collaboration skills. Therefore, organizations should invest in change management, training, and coaching programs to ensure a smooth transition to the Spotify model.
5. Misalignment with business goals: The Spotify model focuses primarily on improving the efficiency and effectiveness of software development and delivery. However, it may not align well with the broader business goals and objectives, leading to a lack of strategic alignment and impact. Organizations should ensure that they align their Agile practices with their overall business strategy and objectives, ensuring that they deliver value to their customers and stakeholders.

In conclusion, the Spotify model has faced some criticism and failures due to its lack of contextualization, complexity, rigidity, resistance to change, and misalignment with business goals. However, it is important to note that the model can still be successful if implemented and adapted correctly, based on the organization's needs and environment. Organizations should focus on understanding their unique context, assessing their level of maturity and complexity, striking a balance between structure and flexibility, investing in change management and coaching, and aligning their Agile practices with their overall business goals and objectives. By doing so, they can unlock the full potential of the Spotify model and achieve their desired outcomes.