Measuring how hard your team is working by counting the number of hours they work or what time they get in and leave is how amateurs run companies. The number of hours worked is not the same as how effective they (and you) are. I had been invited by Rahul, one of my students from […]
Here’s how we’ve organized traditional schooling: You’re certain to have these classes tomorrow. The class will certainly follow the syllabus. There will certainly be a test. If you do well on the test, you will certainly go on to the next year. If you do well on the other test, you’ll certainly get to go…
I am fascinated by the process that went behind building the products that I use every day. Spotify is a company that has an awesome track record of product delivery with over 20 million active users and 5 million and growing paying subscribers. Spotify’s core phases for Product Development are as follows:
- Think It = figure out what type of product is being built and why.
- Build It = create a minimum viable product that is ready for real users.
- Ship It = gradually roll out to 100% of all users, while measuring and improving.
- Tweak It = Continuously improve the product. This is really an end state; the product stays in Tweak It until it is shut down or reimagined (= back to Think It).
The following chart shows the Risk vs. Time for each phase:
As you can see, the “Think It” stage drives down risk at a low cost. You can also see why the “Build It” phase is short as possible (high operating cost and little risk reduction). To gradually reduce operating cost in “Tweak It” reflects that, over time, the product doesn’t need to be updated as much and teams can start moving on to other things.
In addition to their product development process, Spotify also has a unique approach to how they organize their teams into their Goal Focused Squad model. The following video goes over how Spotify organizes their teams:
You can also read more about Spotify’s Product Development process here.