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 tocomplex 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 toorganize 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 contributetowards 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 allowcollaboration 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 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