Spotify Model

Origin
Spotify developed its organizational approach in 2010 by adapting agile practices to its culture and needs. In 2014, it made the approach public in two well-known videos, Spotify Engineering Culture part 1 and Spotify Engineering Culture part 2, produced by Henrik Kniberg and Anders Ivarsson.
Main elements
Squad
The basic unit of work: a small (maximum of 8 people), cross-functional, autonomous team, similar to a Scrum Team. Each squad has a clear mission, autonomy to decide how to work, and responsibility for an area of the product or a specific feature.
Tribe
Collection of squads working in related areas of the product. A tribe should not exceed 100 people (Dunbar's number). It has its own leadership, called the Tribe Lead.
Chapter
A group of people with the same technical specialty within a tribe (designers, backend developers, etc.). The chapter has a Chapter Lead who is responsible for developing the specialty and for the people in the chapter.
Guild
Community of interest that cuts across tribe boundaries. Anyone can join a guild. They are informal groups for sharing knowledge in cross-cutting areas (testing, Agile coaches, etc.).

A Word of Caution on Adoption
Henrik Kniberg himself, one of the authors of the original videos, has repeatedly pointed out that the Spotify model is not a prescriptive model to be copied, but a snapshot of how Spotify worked in 2012. Spotify itself has evolved significantly since then. Organizations that try to "adopt the Spotify model" as if it were a standard framework tend to reproduce the structure (squads, tribes, chapters) without the underlying culture that makes it work.
Common mistake
Adopting the vocabulary without the culture. Renaming teams as squads and tribes does not transform the organization. What makes the Spotify model work in its original context is the real autonomy of the teams, tolerance for failure, a learning culture, and trust between people. Without those cultural foundations, the structure is merely decorative.
See also
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