Spotify do much more than music. In their quest to fail faster, learn quickly and grow rapidly they’re also re-designing the way that agile technology teams grow and evolve. Their approach creates a network self-sufficient agile micro teams (called “squads”), which are connected into wider teams and groups of specialists. Instead of a “matrixed” approach to structuring teams, they’ve created more manageable and more human organisational units. Essential for tech startups, but also fundamental to agency teams. Spotify’s approach contains important lessons that advertising, marketing and communications agencies can and should take on to create a stronger culture and deliver better work.

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© 2015, Ed Hammerton
Scaling like Spotify
What advertising agencies can learn from
software-as-a-service (SaaS) agile organisations

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© 2015, Ed Hammerton
A Disruptive Innovator In The Music Industry
Spotify continue to find new ways to monetise music consumption and grow
their music streaming services
2011 2013
2012 2014

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© 2015, Ed Hammerton
From Zero To Fifty (Million) In Nine Years
In recent years Spotify have seen extremely strong user growth
Spotify has over 50 million global users, 25% of which are paying subscribers
Source: http://www.statista.com/statistics/244995/number-of-paying-spotify-subscribers/

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© 2015, Ed Hammerton
Evolving Services And Products
As Spotify’s products expand, so do its teams
To scale and deliver their service, Spotify is constantly, consciously evolving
its structure and agile methodology
As of December 2014
1941 staff
30 teams
3 countries
Source: http://blog.crisp.se/2012/11/14/henrikkniberg/scaling-agile-at-spotify

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© 2015, Ed Hammerton
How Spotify work

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© 2015, Ed Hammerton
Basic Team Unit: The Squad
Teams are grouped into small self-sufficient units
Squads are focused on one long-term mission and designed to achieve that
goal independently
One squad One mission per squad
(e.g. Creating Spotify radio experience, improving Android client)
Source: http://blog.crisp.se/2012/11/14/henrikkniberg/scaling-agile-at-spotify

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© 2015, Ed Hammerton
Squads: Self-Contained And Self-Directing
Teams are grouped into small self-sufficient units
Minimum viable product mentality: “Think it, build it, ship it, tweak it”
Squads
• Equivalent of client teams in agencies
• Equipped with the skills needed to design, develop
and deploy one part of the UX
• Self-organised and encouraged to apply lean
startup principles and validated learning
• Have a product owner (to prioritise work, NOT to
define how that work is done)
Source: http://blog.crisp.se/2012/11/14/henrikkniberg/scaling-agile-at-spotify

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© 2015, Ed Hammerton
Many Squads Make A “Tribe”
Tribes operate like an incubators for squads working in related areas
Links are encouraged between squads, NOT tribes
Source: http://blog.crisp.se/2012/11/14/henrikkniberg/scaling-agile-at-spotify

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© 2015, Ed Hammerton
Tribes: Co-Located Families
Support, equipment, and skills can be shared within tribes
Sharing experience and resources with squads facing similar challenges
Tribes
• Equivalent to a department (PR, Design, etc.) or an
agency itself
• Size is based on the Dunbar number (<100)
• Each has a tribe lead who maintains the “habitat” for
the squads
• Tribes hold gatherings to share what they’re
working on and what others can learn
Source: http://blog.crisp.se/2012/11/14/henrikkniberg/scaling-agile-at-spotify
http://www.slideshare.net/rsrinath99/approaches-to-scaling-agile

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© 2015, Ed Hammerton
Chapters And Guilds
Specialisms and interest groups that run across squads and tribes
Chapters
• Groups of people with similar specific skills
• Work in the same general competency area
E.g. Copywriting, strategy, UX
Guilds
• Organic “communities of interest”
• Share knowledge, tools, and practices
E.g. Project management, video production
Source: http://blog.crisp.se/2012/11/14/henrikkniberg/scaling-agile-at-spotify

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© 2015, Ed Hammerton
Chapters And Guilds
Sharing economies of scale and specialisms across squads
Sharing experience and resources with squads facing similar challenges
• Provide economies of scale without squads/tribes
losing their autonomy
• Have their own leads
• Cut across tribes
• Meet regularly to share knowledge and discuss their
specific challenges
Chapters
• Have their own leads
• Cut across the whole organisation
• Comprise of people who want to share knowledge,
tools and practices
Guilds
Source: http://blog.crisp.se/2012/11/14/henrikkniberg/scaling-agile-at-spotify
http://www.slideshare.net/rsrinath99/approaches-to-scaling-agile

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© 2015, Ed Hammerton
Sound a little too much like World of Warcraft?
This is what it could mean for advertising agencies…

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© 2015, Ed Hammerton
Lessons For Agencies
Four ways to reshape traditional agency structures
Build specialisms and interests across teams, agencies and networks
Design your squads (project/client teams) to be self-sufficient
Define digital’s position internally: a Tribe, Chapter, or Guild?
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3
Learn and evolve how you work, as you work
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© 2015, Ed Hammerton
Lessons For Agencies
Dropping digital from job titles
Define digital’s position internally: a Tribe, Chapter, or Guild?
1
With so much human endeavour taking place on or behind screens, having
“digital” in your job titles feels increasingly redundant. It’s become more than
a “tribe” – it’s everyone’s responsibility.
Would current digital teams be better grouped as a:
• Skills “family” (a chapter)?
• Or a special interest (guild)?

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© 2015, Ed Hammerton
Lessons For Agencies
Mainstream agency services grouped into several smaller, happier families
Smaller teams are known to provide better services and a more pleasant
work environment. They also promote closer client relationships and a better
understanding of their business.
Is it time to merge your account planning, creative and production teams to
deliver better work?
Design your squads (project/client teams) to be self-sufficient
2

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© 2015, Ed Hammerton
Lessons For Agencies
Become great at more than one thing
Just because you’re a suit, doesn’t mean you’re not fascinated by user
interface design. In fact, there’s far more to everyone than their job title
suggests.
Encourage people to exchange and grow their interests – your worklife
becomes way more interesting and productive that way.
Build specialisms and interests across teams, agencies and networks
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© 2015, Ed Hammerton
Lessons For Agencies
Stop treating the symptoms of problems; find the cause instead
Of course, solve your day-to-day problems first of all. But make sure that
someone has time set aside each week to solve the root of the problems that
keep coming up.
Doing the same thing over and over again and expecting a different outcome
is either:
a) Madness, or
b) Will quickly drive you there
Learn and evolve how you work, as you work
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© 2015, Ed Hammerton
Thanks!
Any comments, questions, objections?
Thrash it out at theantisofa.wordpress.com
Source: https://labs.spotify.com/2014/03/27/spotify-engineering-culture-part-1/