Before emulating a company like Spotify, leaders should examine its entire business. The Spotify model that underpays creators to achieve profitability reveals a culture that might not be worth replicating, regardless of its internal structure.

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We don't write case studies on the hundreds of companies that failed while trying similar playbooks. We incorrectly attribute success to the visible strategies of survivors (like an org model) while ignoring luck, timing, and funding, which are often the real differentiators.

Despite internal failures and employees questioning why the outdated, aspirational model wasn't removed from public view, Spotify continued to leverage the hype. The vision of autonomous 'squads' was a powerful magnet for attracting talent, even if it didn't reflect the operational reality.

The most significant founder mistakes often arise from abandoning one's own judgment to do what is conventionally expected. Jason Fried notes that these errors feel worse because you aren't just failing, you're failing while trying to be someone else, which undermines the core identity of your company.

At Spotify, when people moved teams, they often kept their original manager. This created a chaotic web of reporting lines, making it impossible to establish clear accountability, consistent performance management, or unified team direction, ultimately undermining the model.

Despite posters championing collaboration, a company's real priorities are revealed through promotion decisions. When individuals who manipulate metrics or undermine teams are advanced, it proves those behaviors are what the organization actually rewards, rendering official values meaningless.

The success of any org model is tied to preconditions like executive backing and a collaborative culture. Simply renaming teams to "squads" and "tribes" without changing underlying behaviors is just "installing a new set of jargon" and leads to failure.

Culture isn't an abstract value statement. It's the sum of concrete behaviors you enforce, like fining partners for being late to meetings. These specific actions, not words, define your organization's true character and priorities.

The famed organizational design was merely an aspirational "wishlist" that Spotify never fully adopted. Companies copying it are chasing a fantasy primarily used for recruiting, not a proven operational model that the company itself ever ran on.

A company’s true values aren't in its mission statement, but in its operational systems. Good intentions are meaningless without supporting structures. What an organization truly values is revealed by its compensation systems, promotion decisions, and which behaviors are publicly celebrated and honored.

The narrative of scrappy innovation via the Spotify Model is revisionist history. The company had access to over $2 billion in cheap capital, allowing it to burn money, absorb costs, and outlast competitors—a luxury most companies attempting to copy its structure do not have.