Looking at Spotify, Airbnb, and Zappos, the biggest difference to me is where authority sits and how much structure each system gives its teams.
Spotify organizes work around small, autonomous squads, with related squads connected through larger groups. Teams have a lot of freedom to make decisions themselves. I like the independence, but I think relying heavily on small teams could make it easier to get caught up in local details. Larger projects may also require more coordination across squads, which could make communication more complicated.
Zappos takes decentralization even further with holacracy. Instead of authority belonging to someone’s title, it belongs to clearly defined roles inside circles. Someone can make decisions within the responsibilities of their role without simply being overruled by a more senior person. I actually like the idea of hierarchy being based on the work rather than the person, but I still think the system lacks some of the structure I would want.
I would prefer Airbnb’s model. Airbnb operates as a functional organization and gives senior leadership, especially design and the CEO, a strong role in shaping product direction. I like having clearer leadership and responsibility across different functions. To me, that structure could make communication easier and help larger teams work toward one product vision without every small group moving too independently.
