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 nowillegal 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?