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.
The "3 A's" framework offers a practical alternative to the pitfalls of unchecked autonomy seen at Spotify. True empowerment means ensuring teams have strategic guardrails (Alignment), clear responsibility for outcomes (Accountability), and the capability to succeed (Ability).
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.
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.
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.
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.
Despite internal failures and employees questioning why the outdated, aspirational model wasn't removed from public view, Spotify continued to leverage the hype.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.
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.
A former Spotify agile coach admitted they focused too much on autonomy, which created "really dumb problems." Teams lacked standard tooling like a common version control system, proving that autonomy requires strategic guardrails and alignment to be effective at scale.