CASE # 1 (Managing without Managers)
Just Music, a European commercial music service, is synonymous
with dramatically changing the way consumers access and use music
on a day-to-day basis. They have succeeded in moving consumers away
from buying music and, instead, moving them towards a model of
renting the music they enjoy for a monthly fee. The European music
giant, launched in 2008, was developed into the business we know
today by European entrepreneur Paul Moon, who was inspired to
create a service that would be easier and more convenient for
customers to use than the now- illegal file sharing websites that
were popular at the time.
Like many technology companies, Just Music has a flat
organizational structure as opposed to complex hierarchies of
management. For Managing Without Managers companies like Just Music
it is imperative that they can work in a fast-moving way that
allows changes in content to get to the customer as quickly as
possible. In order to work as efficiently as possible Just Music
have adopted a management and organizational structure based upon
squads, chapters, tribes, and guilds. Although you won’t find
theory talking about organizational tribes or chapters, it does
provide a useful way for Just Music to organize their staff and
reporting structures in an industry where many are trying to remove
mangers entirely.
‘Squads’ are the building blocks of organizational structure
at Just Music. These small teams work in a way that is similar to a
small startup business. These squads sit together in one shared
space in order to work as effectively as possible on one long term
mission; usually improving a specific area or part of the Just
Music experience. Squads do not have a manager and instead work
together to ensure the overall problem is solved. Each squad does
however have a ‘Product Owner’, and it is their job to ensure that
work is prioritized across the whole squad. Within each squad you
will find employees with different skills that can contribute
towards the squad achieving their goal.
‘Tribes’ are groups of squads that work in similar areas. This
means that all the squads who are working on web-based services are
part of the same tribe; and squads who work on the mobile Just
Music application will be part of a different tribe. Each tribe,
like the individual squads, is able to work autonomously with very
little traditional management taking place. Within the Just Music
offices the multiple squads that make up each tribe sit close
together to allow collaboration between squads as needed, however
the ethos of Just Music aims to discourage squads and tribes being
dependent on one another so that change can happen as quickly as
possible, something that is incredibly important in the ever
changing technology markets.
In order to be able to manage the staff and structure
throughout the organization Just Music utilizes what they term
‘Chapters’. These chapters are collections of people who have
similar skills but who work in various squads; for example, a
chapter may be comprised of all of the programmers in the various
squads within one tribe. It is within these chapters that we see
more of a link to traditional management theory with clearer lines
of management and responsibility for staff members, their
development, pay and progression. The only time people tend to work
outside their tribe is when taking part in ‘Guild’ activities. The
guilds are cross tribe groups of people who have similar interests
but again do not have any formal management, and are instead
autonomous and self-managed, working on projects or problems that
interest them.
As a fast-moving technology company, it is of course essential
for Just Music to be able to react, change, and adapt their online
content quickly. In approaching management in a nontraditional
manner, they have allowed individuals to be more creative whilst
still meeting the overall goals of the business. There are however
potential difficulties with adopting this more relaxed attitude to
management, as there is an overall lack of control and there are
opportunities for the freedom
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offered to staff to be misused. The increase in technology
companies such as Just Music is changing the landscape of
management, with many trying to avoid traditional management
practices altogether. Just Music is somewhat unique in its field as
they have recognized the need for management within the
organization, however they have attempted to find a unique way of
balancing the need for freedom and creativity in the workforce
whilst still undertaking basic management activities. As Just Music
grows, they may need to reflect upon their approach to
management.
Case # 1- Discussion Questions
1. Who undertakes management at Just Music?
2. How could Just Music manage poor performing individuals or
teams? Do you think this
is a problem at Just Music? Why or why not?
3. Are there any similarities to traditional management at
Just Music?
4. Do you think that this approach to management would be
effective within another
company?
answer this question according to the prograph