A Company Is Not a Family. It's a Sports Team

Families don’t fire you when times get tough. They don’t replace you with someone more qualified. And they certainly don’t expect you to sacrifice your personal life for the good of the “family.”

So if a company isn’t a family, what is it? I’ve come to believe that a much better analogy is a sports team.

Why a Sports Team?

Think about it. A sports team has clear goals, defined roles, and a shared mission. Sound familiar? It should, because that’s exactly what a well-run company looks like. Let’s break it down:

1. Clear Objectives: In sports, the goal is to win. In business, it’s to create value and turn a profit. Both are measurable, tangible outcomes.
2. Defined Roles: A quarterback doesn’t suddenly decide to play defense. Similarly, your backend dev shouldn’t be making executive decisions about UI design (unless that’s part of your unique process, in which case, more power to you).
3. Performance Matters: Let’s be real. If you’re not pulling your weight on a sports team, you get benched. In a company, underperformance should have consequences too. It’s not personal; it’s business.
4. Constant Improvement: Athletes are always training, always pushing to be better. In tech, if you’re not learning, you’re falling behind. The sports team mentality encourages continuous growth.

The “Family” Trap

I’ve seen too many companies fall into the “family” trap. I once consulted for a startup that prided itself on its “family-like” atmosphere. Sounds great, right? Well, it led to some seriously questionable decisions:

• They kept an underperforming CTO because he was the founder’s college roommate. “You don’t give up on family,” they said. Meanwhile, their tech was falling behind competitors.
• They promoted based on tenure rather than skill. “It’s only fair to reward loyalty,” was the justification. The result? A leadership team that was more about longevity than capability.
• When they finally had to do layoffs (because, surprise, running a business like a family doesn’t always work), it felt like a massive betrayal. People were blindsided because “families don’t do this.”

Spotify’s Squad Model

Let’s look at a company that got it right. Spotify’s engineering culture, particularly their famous “Squad” model, is a perfect example of the sports team mentality in action.

Spotify organizes its engineering department into small, cross-functional teams called Squads. Each Squad is like a mini-startup within the company, responsible for a specific feature or part of the Spotify experience.

Sports team mentality

• Clear Goals: Each Squad has a long-term mission and short-term goals, just like a sports team has a season objective and game-by-game strategies.
• Autonomy with Accountability: Squads have the freedom to decide how to best achieve their goals, but they’re also accountable for their results. It’s like a coach trusting their players to make decisions on the field.
• Cross-functional Collaboration: A Squad includes not just developers, but also designers, product owners, and others. It’s like having offense, defense, and special teams all working together.
• Adaptability: Squads can be formed, changed, or dissolved as needed, much like how sports teams trade players or change strategies based on performance and needs.

This model has allowed Spotify to remain innovative and agile, even as they’ve grown into a tech giant. It’s not about being a family; it’s about being a high-performing team.

So, how do you shift from the “we’re a family” mindset to the more realistic and effective sports team approach? Here are some practical steps:

1. Set Clear KPIs: Just like sports teams have clear metrics (points scored, games won), your teams should have clear, measurable goals.
2. Regular Performance Reviews: Athletes get constant feedback. Your team members should too. Make reviews a normal, non-threatening part of work life.
3. Encourage Skill Development: Allocate time and resources for your team to level up their skills. It’s like training sessions in sports. A great example of this mindset in action is Google’s 20% rule, where engineers could dedicate one-fifth of their workweek to side projects, leading to innovations like Gmail and AdSense.
4. Celebrate Wins, Learn from Losses: Had a successful product launch? Celebrate it! Project didn’t meet expectations? Analyze why and learn from it.
5. Foster Healthy Competition: Internal hackathons, coding challenges, or even friendly competitions between teams can drive innovation and improvement.

The Bottom Line

Look, I get it. The “family” analogy feels warm and fuzzy. It sounds nice in recruiting pitches and company all-hands meetings. But it’s not honest, and it’s not helpful.

A company is not a family. It’s a group of professionals working together towards common goals. And the sooner we embrace that reality, the healthier our work cultures will be.