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Author Dad Organizational Refactorist www.crisp.se Consultant Henrik Kniberg [email protected] @HenrikKniberg Spotify Rhythm How we create focus Agile Sverige, 2016-06-01

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Page 1: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Author

Dad

Organizational Refactorist

www.crisp.se

ConsultantHenrik [email protected]

@HenrikKniberg

Spotify Rhythm How we create focus

Agile Sverige, 2016-06-01

Page 2: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

500

1000

1500

2000

2006 2007

# of employees

2008 2009 2010 2011 2012 2013 2014 2015 2016

Henrik Kniberg

Page 3: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Fall 2014 research: “What’s slowing us down?”

Henrik Kniberg

Misalignment! WIP overflow!

Page 4: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Henrik Kniberg

WTF!

?!?!

#@%&?!

Hey!!

Huh?

This doesn’t scale

Page 5: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

WTF! You guys are building a BRIDGE?

Henrik Kniberg

Misalignment WIP overflowWTF! You guys are

building a TUNNEL?

Page 6: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Goal: Clear priorities, Data-driven decisions, Learning loop

Henrik Kniberg

We’re working on X. Because Sam said it’s

important.

We’re done when the metrics have movedWe’re done when Sam

is OK with it.

We’re working on X. Because we think it’s going to give impact Y,

which matters to Spotify because of Z

Page 7: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Henrik Kniberg

OKR

Objectives & Key Results

P&A

Priorities & Achievements

SpotifyRhythm

Page 8: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Henrik Kniberg

Page 9: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Visualize the Big Bets

Henrik Kniberg

Launch in Country A

Build new product

capability B

Innovate on C Build

infrastructure for D

Page 10: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

High-Medium-Low = a broken way of prioritizing

Henrik Kniberg

HIGH prio

MEDIUM prio

LOW prio

Build new product

capability B

Innovate on C Build

infrastructure for DLaunch in

Country A

Page 11: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Stack rank

Henrik Kniberg

Only ONE thing gets to be priority one!

Launch in Country A

Build new product

capability B

Innovate on C

Build infrastructure

for D

1

2

3

4

5

6

7

8

CompanyBeliefs

X activeusers

World class

employer

North Star goals

If we only can do one of these two things, which one

would we do?

Why?

Page 12: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Don’t do it all at once

Henrik Kniberg

Now Next LaterLaunch in Country A

Build new product

capability B

Innovate on C

Build infrastructure

for D

1

2

3

1

2

3

4

1

2

Page 13: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Henrik Kniberg

The Bets Board is a Google Spreadsheet Open to everyone at the Spotify

Page 14: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Each bet needs a 2-page brief (google doc)

Henrik Kniberg

Road ManagerLead team sponsor

Key stakeholders Success metrics

Related bets .........

Now Next Later

Launch in Country

A

Build new product

capability B

Innovate on C

Build infrastructure

for D

1

2

3

1

2

3

4

1

2

Data Insights Belief Bet

DIBB

Page 15: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

DIBB – an argument framework

Henrik Kniberg

For long term survival, we need to become mobile-first

WTF we’re optimized for the wrong thing!

BeliefHire a bunch of mobile devs

Train a bunch of our desktop devs into mobile devs

Build infrastructure for iterating fast on mobile

BetMobile is overtaking desktop as primary music gadget!

We have very few mobile devs compared to desktop

Data Insight

How we’re staffedMobile devs

Desktop devs

Desktop users

Mobile users

Time

How people listen to music

Example:(Something like this happened a few years ago)

Feedback loop

Page 16: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

More Bet Boards started popping up

Henrik Kniberg

Now Next LaterLaunch in Country

A

Build new product

capability B

Innovate on C

Build infrastructure

for D

1

2

3

1

2

3

4

1

2

Company Bets BoardNow Next Later

1

2

3

1

2

1

2

TPD Bets Board(Tech-Product-Design)

4

Tribe X Bet BoardNow Next Later

1

2

3

1

2

1

2

3

Now Next Later

1

2

4

1

2

1

Tribe Y Bet Board

3

Content,Revenue,Marketing, etc

Page 17: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Bet = alignment point

Henrik Kniberg

Sony Playstation Integration

#1 Bet

Page 18: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Stack-ranked bets enable cross-company alignment

Henrik Kniberg

Innovate on C

Sony Playstation Integration

#1 Bet

#2 Bet

Page 19: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Spotify Rhythm = cadence for deciding what to focus on

Henrik Kniberg

Strategy team – every quarter

TPD prioritization group – every 6 weeks

Now Next Later

1

2

3

1

2

1

2

3

Company BetsNow Next Later

1

2

3

1

2

1

2

3

Company Bets

Now Next Later

1

2

3

1

2

1

2

3

TPD BetsNow Next Later

1

2

3

1

2

1

2

3

TPD BetsNow Next Later

1

2

3

1

2

1

2

3

TPD BetsNow Next Later

1

2

3

1

2

1

2

3

TPD Bets

Page 20: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Tempo markers

Henrik Kniberg

NowLaunch in Country A

Innovate on C

Build infrastructure

for D

1

2

3

4

5

6

7

= Moving as fast as it could

= Moving slower than it could

= Blocked

Page 21: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

What does Spotify Rhythm mean for squad autonomy?

Henrik Kniberg

Page 22: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Squads are (still) responsible for figuring out how to make best use of their time - Bet Boards & DIBBs provide context

Henrik Kniberg

User dataBacklog

Now Next Later

1

2

3

1

2

1

2

3

Company Bets

Now Next Later

1

2

3

1

2

1

2

3

TPD Bets

Now Next Later

1

2

3

1

2

1

2

3

Tribe Bets

North star goals

Hey, we need your help

IO

Hey, you need to upgrade to the new build server

Page 23: Spotify Rhythm - Agila Sverigeblog.crisp.se/wp-content/uploads/2016/06/Spotify-Rhythm-Agila-Sverige.pdfSpotify Rhythm How we create focus Agile Sverige, 2016-06-01. 500 1000 1500 2000

Take-aways

Henrik Kniberg

Current Challenges:•  How does innovation

fit in?•  How do we minimize

waste / process overhead?

•  Agile techniques can be used to lead a company

•  Autonomy only scales if leaders provide high-level context

•  Simple tools = fast evolution•  Use different time scales at different

levels•  Keep experimenting

but don’t forget to follow up! VISION