The Spotify model is an agile organizational method that allows your company to develop products quickly and successfully. The strength of this framework lies in an efficient hierarchy with self-directed work of team members, which allows scaling of solutions and concepts.
The framework is based on the model of Spotify, a fast-growing music streaming service with over 350 million users and 60 million tracks worldwide. It was first described by Henrik Kniberg and Anders Ivarsson in a white paper in 2012.
Spotify developed its own scaling agile methodology where all developers work in the same direction: Leadership defines the overarching strategy and precise goals, and teams are given the freedom to decide how to execute and achieve the goals. The organization is based on both agile methods and classic organizational charts.
The Spotify model encourages employees to think outside the box and constantly try new things. The units act very autonomously – the prerequisite for this is that the goals and the purpose of your company are formulated to them in a tangible and understandable way. The foundation of this agile, self-determined organization are values such as appreciation and trust in the performance, the will, the working power and the independence of the team members. If your company lives these values, the Spotify model works.
Employees create deliverables in smaller, autonomous teams. These “squads” merge into higher-level “tribes.” They find their professional home in a functional organizational form called “Chapter”. In addition, employees can exchange information on any topic in communities known as guilds. This structure resolves the natural tension between an organizational responsibility and a professional perspective. Of crucial importance is a sovereign leadership that gives employees their trust.
The Spotify model also works in larger companies – Spotify itself has over 3,000 employees. For larger companies, it is very important that agile teams scale results. On the one hand, they need to differentiate products in their model range, for example, but still have a coordinated portfolio. On the other hand, you need to develop a single product in depth. The best way to solve these multiple objectives is with scaling agile methodologies like the Spotify model, which gives you the freedom to transport your organization’s specific requirements into a custom-fit framework. You don’t have to develop software in the process: The Spotify model works in all organizations where agility is required.
