How to Structure Engineering Teams
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How to Structure Engineering Teams
An Introduction to the Art and Science of Structuring Engineering Teams
In one of my previous essays, we explored how to build a team from scratch as a first-time manager. We analyzed some challenges and shared some tips on how to streamline this process.
Despite some of the hurdles we discussed, everything would be reasonably smooth at the beginning if you adhere to some of the best practices I shared. But then, at one point, your team will start growing and, let's say when it exceeds 5-7 people, you will begin to struggle.
Welcome to another manager's challenge: Structuring your Team!
As a manager, building an effective team is not a one-size-fits-all approach. Each team has its own unique story, influenced by various variables, and there's no universally applicable formula when it comes to structuring teams. Team structure plays a pivotal role in shaping the dynamics of a group, determining how members interact, collaborate, and make decisions.
In this essay, we will explore why it's important to give your team a well-thought-out structure, discuss different types of team structures, and delve into some essential principles for structuring and growing successful engineering teams.
Our journey will include the following stops:
🧭 Understanding the importance of a team structure
🏗️ Exploring different types of team structures and when to use them
🔧 Learning how to decide the best structure for your team
Let’s begin!
🧭 Why your Team Needs Structure
Think of a team without a clear structure like a boat without a rudder. It floats around without a clear direction and hardly ever reaches its destination. A team's structure is like that rudder. It gives direction, defines roles, and helps team members work together more effectively.
Conway's Law
The importance of team structure is well explained by Conway's Law. In 1967, Melvin Conway, a computer scientist, suggested that the way teams are structured directly affects the results they produce.
In his own words:
“Any organization that designs a system (defined broadly) will produce a design whose structure is a copy of the organization's communication structure.”
Conway's Law helps us understand how team structure influences product and software design and how you can use it to structure your teams.
Organizational Structure and Software Design
Your team's structure can shape the product you are working on significantly. For example, if you have a team with siloed divisions, your final product could likely reflect this segmentation, resulting in a disjointed user experience. On the contrary, a cross-functional team can lead to a more cohesive and seamless product. This is because the structure of your team dictates the flow of ideas and information, influencing the design and development process.
Understanding how team structure affects product design allows you to utilize this knowledge in building a more productive team. For instance, if you aim to create a product with various independent parts, it would be better to structure your team into smaller, autonomous units. In doing so, the structure of your team and your product will be harmoniously aligned, leading to a superior end product and a more efficient team.
🌀 Type of Team Structures
As we mentioned, one size doesn't fit all when it comes to team structures. Every team is unique, and therefore, different team structures work best in different situations. Particularly in the software engineering context, there are many ways of structuring a team. Some of them are well-known and traditionally recognized, while others are more unconventional. Let’s see some of them.
Functional Structure
The functional structure is a traditional hierarchical setup where teams are organized based on their specialized functions or skill sets. In this arrangement, engineers with similar expertise are grouped together, such as software developers, QA engineers, sys-admins, etc.
💡 When to Use this Structure
The functional structure is best suited for large organizations with diverse engineering needs. It is ideal for stable and well-established projects with routine operations and clear job roles.
✅ Pros
Expertise focus: teams can develop deep expertise within their respective areas, leading to a high level of technical competence.
Clear career paths: engineers can progress in their careers within their specialized domains.
Efficient resource allocation: since engineers work on similar tasks, resource allocation and utilization are streamlined.
❌ Cons
Limited cross-functional collaboration: communication and coordination across departments can be challenging, potentially leading to silos.
Slow decision-making: hierarchy can slow down the decision-making process as decisions often require approval from multiple levels.
Lack of ownership: engineers may feel disconnected from the overall project goals, leading to reduced ownership and motivation.
Product-Based Structure
In a product-based structure, teams are organized around specific products or product lines. Each team is responsible for the development, maintenance, and improvement of their assigned products.
💡 When to Use this Structure
The product-based structure is well-suited for companies that offer a range of products or services. It fosters deep product expertise and customer-focused development.
✅ Pros
Customer-centric: teams are dedicated to specific products, allowing them to focus on customer needs and feedback.
Rapid innovation: product teams can iterate quickly and make product improvements efficiently.
Accountability: each team is responsible for their product's success, leading to a sense of ownership and accountability.
❌ Cons
Resource duplication: if similar functions exist in multiple product teams, there might be duplication of resources and efforts.
Inter-team competition: competition among product teams may arise, potentially leading to conflicts and reduced collaboration.
Limited knowledge sharing: product-focused teams may not interact as much with other engineering functions, limiting cross-pollination of ideas.
Matrix Structure
The matrix structure blends aspects of both functional and product-based structures. In this setup, engineers are grouped based on their functions and are simultaneously assigned to specific projects.
💡 When to Use this Structure
The matrix team structure is better suited for complex projects or organizations that require a high level of collaboration and coordination between different functional areas or departments.
✅ Pros
Optimal resource utilization: engineers' skills are utilized efficiently across projects, maximizing expertise.
Enhanced collaboration: cross-functional teams foster better communication and understanding between departments.
Balanced focus: engineers have both functional and project-related responsibilities, providing a balance between specialization and collaboration.
❌ Cons
Dual reporting lines: engineers may face conflicting priorities and reporting relationships, causing confusion.
Increased complexity: managing multiple projects and functional responsibilities can be challenging for team members and leaders.
Communication overhead: the need to coordinate between different teams and managers can lead to communication overhead.
Unconventional Structures
In addition to the more traditional team structures discussed earlier, some companies have adopted unconventional approaches that challenge the norms of organizational hierarchies and management. These unique team structures have gained attention for their innovative and agile approaches to work.
These organizations have successfully embraced alternative methods of team organization, which have led to increased creativity, efficiency, and adaptability.
Amazon - Two-Pizza Team Structure
Amazon is renowned for its customer-centric approach and relentless focus on innovation. To facilitate agility and rapid decision-making, Amazon introduced the "Two-Pizza Team" structure. This approach emphasizes small, autonomous teams that are sized small enough to be fed with two pizzas (I’m not sure it would work for me, since I can easily eat two pizzas 😂), typically comprising five to seven members.
Key Features:
Autonomy: each two-pizza team operates with a high level of autonomy, giving them the freedom to make decisions independently.
Customer-centric: the teams are focused on specific customer needs or projects, allowing them to stay aligned with customer requirements and deliver valuable outcomes.
Fast Decision-Making: with fewer team members, the decision-making process is streamlined, allowing teams to respond quickly to challenges and opportunities.
Ownership and Accountability: small teams foster a sense of ownership, and each team is accountable for delivering results for their designated area.
The "Two-Pizza Team" structure at Amazon has enabled the company to stay nimble and adapt to changing market conditions swiftly. By decentralizing decision-making and empowering small teams, Amazon fosters an innovative and entrepreneurial culture where employees take initiative and drive outcomes.
Spotify - Squad, Tribe, Chapter, Guilds Model
Spotify, the music streaming giant, follows an unconventional team structure called the "Squad, Tribe, Chapter and Guilds" model. This framework combines elements of functional and cross-functional teams to promote collaboration and innovation.
Key Features:
Squads: are small, cross-functional teams with a shared mission, such as developing a specific feature or functionality. Each squad operates with high autonomy, owning the end-to-end process.
Tribes are collections of related squads working towards broader business objectives. These tribes bring together squads that share common goals and work collaboratively on larger initiatives.
Chapters are groups of employees with similar skills or expertise, working for the same tribe. They provide a platform for knowledge sharing, best practices, and skill development.
Guilds are like big groups of people who have the same interest or hobby. They are more extensive than chapters, which are found in just one tribe. Guilds can have members from many tribes.
The "Squads, Tribes, Chapters, Guilds" model at Spotify fosters a culture of continuous learning, collaboration, and adaptability. It allows teams to innovate rapidly while ensuring a strong sense of community and skill development within the organization.
Valve - Flat Organizational Structure
Valve, a video game developer and distributor, is famous for its unconventional and flat organizational structure. In this model, Valve operates without traditional managers or hierarchies, promoting a self-organizing and self-governing work environment.
Key Features:
Flat Hierarchy: Valve's organizational structure is flat, with minimal managerial layers. Employees have the freedom to choose the projects they want to work on, aligning their interests with their passion and skills.
Self-Organization: teams are formed organically based on employees' interests and expertise. These teams collaborate based on mutual interest rather than formal assignments.
Personal Accountability: since employees choose their projects, they feel a strong sense of ownership and accountability, driving them to excel in their work.
Peer Review: instead of traditional performance evaluations, Valve employs a peer review system where employees provide feedback to their colleagues.
Despite this model sounding very interesting and inspiring, some concerns have been raised by some of their employees over the years.
🔧 How to Choose the Best Team Structure
Deciding on the right team structure is a crucial step in maximizing your team's potential and achieving your organizational goals. While it may seem like a daunting task, taking a thoughtful and informed approach can lead to a structure that fosters collaboration, efficiency, and overall success. Here are some practical tips, drawn from my experience, to help guide you through the process.
Don't Rush into It
As a manager, it's natural to want everything to be well-organized and under control, especially as your team starts to grow. The need for structure becomes evident, and you may be tempted to impose it . However, avoid to force a rigid structure on your team overnight. Instead, take a gradual approach and introduce elements of structure as needed. Allow your team to adapt to the changes naturally, which will enhance acceptance and ensure a smoother transition.
Involve your Team
Involving your team in the process of introducing the new structure can lead to a more successful and harmonious transition. By communicating openly and welcoming their feedback, you empower team members to take ownership of the changes. Embracing your team's input ensures that diverse perspectives are considered, leading to a well-rounded and effective structure.
Understand Your Needs
Before making any decisions about the team's structure, take the time to gain a deep understanding of your team's and organization’s unique needs and objectives. Observe how your team members interact, what roles they play, and how work processes flow. Identify any challenges or bottlenecks that might be hindering productivity. This information will provide valuable insights into the type of structure that will work best for your team and organization.
Stay Flexible
A team structure that works well today may not be as effective in the future. Embrace flexibility and adaptability to accommodate the changing needs of your team and organization. As your team evolves and faces new challenges, be open to adjusting the structure accordingly. A flexible approach allows you to make proactive changes that enhance productivity and support your team's growth.
Hierarchies vs. Flat Structures
One of the most significant dilemmas for first-time managers is choosing between hierarchical and flat team structures. While flat structures are increasingly popular and promote a sense of equality and collaboration, hierarchical structures may be more suitable for certain types of organizations and work environments. Consider factors such as your company culture, specific objectives, team size, and the nature of the work you do. Don't be afraid to experiment and find the best fit for your team's unique circumstances.
Communication Is Key
Effective communication is the backbone of any successful team, regardless of its structure. Foster an environment where open dialogue and transparent communication are encouraged. Establish clear communication lines within the team to ensure everyone is well-informed and aligned with the team's goals. Investing in good communication tools and promoting a culture of constructive feedback will help build a cohesive and productive team.
🎯 Conclusion
Being a manager, whether you're experienced or new, is a bit like being a ship's captain. You're in charge of navigating your team towards its goal. The structure of your team is like the blueprint of the ship. It determines how well your team can work together to reach that goal.
Through this essay, we've looked at why team structure is important, the different types of team structures, and how to choose the right one for your team. We've also seen how team structure can impact the products your team creates. But remember, there's no 'one size fits all' when it comes to team structures. The best structure is the one that fits your team's and organization’s needs and can adapt as those needs change.
And at the heart of any team structure are the individuals who make up the team. As managers, we should focus on creating a structure that brings out the best in each team member. This way, we won't just have a well-structured team, but a team that's driven, productive, and geared for success.
Because in the end, it's not just about having a great team structure. It's about creating a team that can overcome challenges, adapt to changes, and consistently deliver results. And that is what truly makes a great team.
✌️ That’s all folks
That's all for today! As always, I would love to hear from my readers (and if you've made it this far, you're definitely one of the bravest). Please don't hesitate to connect with me on LinkedIn or Twitter and send a message. I always respond to everyone!