Many organizations adopt, in some form, an agile way of working. This involves working together in small teams, often between five and 10 people, on a prioritized list of areas for improvement (project-based or otherwise). Thanks to this agile working method, more is achieved in less time. However, where agile works very effectively for this team size, its applicability for a large team is limited. More and more large organizations are interested in the benefits of applying agile methodologies within larger teams or even across the entire organization. But how do you effectively use an agile methodology, which focuses on working in small teams, in a large organization with large teams? In this additional insight, we will answer this question by explaining the Spotify model; a methodology created to make agile applicable with large teams or within an entire organization. In addition, this supplemental insight will discuss the principles of the Spotify model and explain the pitfalls that cause the model to be difficult to implement.
The Spotify model is named after the organization in which this method originated and was first used: Spotify. The model emerged during Spotify’s growth. At first it used scrum, an agile method that involves working on a product in a small team. As the company grew, these teams became larger and the scrum method was no longer effective. Spotify adapted the application of the scrum method to the growing organization, to what they themselves call “Spotify Engineering Culture. This method is better known today as the Spotify model.
Squads and tribes
So in developing the Spotify model, scrum was used as a starting point. The scrum teams were replaced by squads. A squad works collectively on the long-term objective assigned to them. How they achieve this objective is entirely up to them. This autonomy promotes innovation and employee commitment. Achieving this long-term goal completely independently is made possible by the multidisciplinary nature of a squad, which provides knowledge and expertise of the various aspects that are important for achieving this long-term goal. The tasks performed by the squad are short-circuited with the product owner of the respective squad. Similar to scrum, the product owner has the task of indicating the prioritization within the squad, but otherwise does not interfere in the day-to-day affairs of the squad.
In a large organization, the number of people working on the same product or service is often larger than one squad, so multiple squads are set up for the product or service in question. These squads collectively form a tribe. Within a tribe, a tribe lead is designated, who is responsible for facilitating a productive and innovative environment for the squads. For example, most squads within a tribe often work in the same building to facilitate direct communication and have space to hold brainstorms and write down ideas, such as by placing whiteboards.
Now, within a tribe, squads may be dependent on each other, for example, to develop a product consisting of a few sub-products. The squads cooperate in this by providing the sub-products for each other and by adjusting and coordinating schedules with the other squads where necessary, including during the projects. Of course, it can happen that a designated squad does not have time to deliver a requested partial product on time. In this case, another squad within the tribe may choose to develop this partial product itself and have the result verified by the designated squad, so that the requested delivery deadline is met. Effectively taking over tasks from another squad is only possible thanks to the multidisciplinary nature of squads and close cooperation within a tribe.
The Spotify model, outlined by Spotify itself.
Chapters and guilds
Whereas tribes and squads are multidisciplinary, chapters and guilds are instead organized by discipline, comparable to a department or business unit in a more traditional organization. A chapter is formed by all people with the same function within the same tribe. For example, a chapter may consist of all architects working on the same product, in one or more squads but within the same tribe. One of the members of the chapter is the chapter lead. He facilitates a periodic time to meet with all members of the chapter. In this way, knowledge can be shared, but also joint reflection on possible bottlenecks requiring profession-specific knowledge and experience. In addition to facilitating this consultation moment, the chapter lead acts as a coach for the members of his chapter.
Overall, there are guilds. Guilds consist of people with the same function or interest, both inside and outside the tribe. Guilds also hold periodic meetings to share knowledge and help each other. For example, a problem for which no solution is found within a tribe can be presented to members from other tribes. This creates new insights that help solve the problem. Also, the solution to the same type of problem in another tribe can help solve the current problem. So essentially, a guild has the same function as a chapter, only it consists of a larger group to spar with.
Principles of the Spotify model
The Spotify model is based on a set of principles, also called the “Agile à la Spotify” manifesto by Spotify itself, where the overarching principle is to facilitate autonomy for teams. These principles form the basis for securing the agile working method.
- CONTINUOUS IMPROVEMENT which means that areas for improvement are always being looked at, both on an organizational and personal level. A prerequisite for this is an open culture in which every change is seen as an opportunity to improve, people are willing to try new things and fear of failure is removed.
- ITERATIVE DEVELOPMENT to validate assumptions quickly. Hypotheses are tested and analyzed and the results of these analyses are used to improve and adjust assumptions where necessary. To adjust assumptions made in a timely manner, it is important to work in short cycles, also called “short-learning cycles” by Spotify, where testing can be continuous.
- SIMPLICITY is needed to facilitate scaling up and sharing knowledge quickly. This applies to technical aspects, working methods and the organization as a whole. Lines of communication are as direct as possible and all unnecessary steps are taken. To keep complexity out of the organization, time is spent iteratively to simplify. This can be done both within squads, tribes, guilds and chapters.
- TRUST IN EMPLOYEES is necessary for them to make decisions. Trust among themselves is also important, so that employees ask each other the right critical questions, bringing out areas for improvement. By giving trust to employees, they feel more responsibility and more ideas are generated.
- SERVANT LEADERSHIP, in which managers focus on coaching, mentoring and solving bottlenecks, rather than telling others what to do. This encourages working together to come up with solutions and implement ideas. There are also regular moments for one-on-one coaching to guide employees. Important in servant leadership is that decisions are transparent and supported by the organization.
In the principles of the Spotify model, we see many cultural aspects reflected. For example, under the premise of “Continuous Improvement,” one can read that an open culture is required to implement this, and for the premise of “Simplicity,” the advice is to keep the lines of communication as direct as possible.
Pitfalls
Despite the success that the Spotify model has had within Spotify itself, the model also has a number of pitfalls that can cause the model to become bogged down and make it inadvisable to adopt the model in another organization.
- The matrix organization, where there is a chance that it is not always clear at what point the tribe or chapter lead should be involved. To avoid this, it is recommended that the same manager be appointed for all people within a team with the same function or in the same field.
- Too much focus on team autonomy and no attention or processes for what is happening outside the team. Make sure there is agreement across the organization, not just within teams, and that there are processes in place for cross-team collaborations.
- Everyone can collaborate, right? If not all employees are familiar with agile principles, the whole Spotify model can get bogged down. It is therefore important to support employees in this, for example by providing support in planning, collaborating and properly filling in the team roles.
The terms of the Spotify model are different from the terms in most organizational models. The transition to a new organizational model can be confusing at first. ‘Dropping management functions’ or replacing current designations, such as business units, with the terms of the model can add to this confusion. Each (new) employee must learn the organizational structure, so don’t make it more complex than necessary. You can download the insight below.
