A Guide to Building Agile Innovation Squads: Boosting Creativity & Growth

by Reuben Chircop

October 26, 2023

In the context of product development, “Squads” is a term often associated with the Spotify model, which is an agile framework used by the music streaming company Spotify and has been adopted by other organisations as well. In product development, Squads refer to small, autonomous teams of individuals with cross-functional skills who work together on specific features or components of a product. These teams are designed to be self-organising and self-sufficient, responsible for delivering value to the product and, ultimately, the customer.

Key characteristics of Squads in product development include but are not limited to the following:

Cross-Functional Expertise

Each Squad is composed of members with diverse skills relevant to the tasks at hand. For example, a Squad might consist of software developers, designers, quality assurance testers, and other roles necessary to complete a specific feature or function.

This can be staggered. For example, for your project, you may only need validation or research at a particular stage. In such cases, you can assemble a dedicated research or validation squad to fulfil that specific mission. Once the validation or research is successfully completed, that squad has fulfilled its mission and is no longer needed. At this point, another squad can be formed to address the next stage or objective in your project.

Autonomy

Squads have a high degree of autonomy. They are responsible for their work, from planning and design to development and testing. This autonomy allows them to make decisions, set priorities, and choose their own methodologies.

Mission-Based

Squads typically have a clear mission or objective that aligns with the broader product development goals. This mission could be to develop a particular feature, enhance user experience, or address a specific user problem.

Long-Term Stability

While Squads have autonomy, they are not temporary teams. They aim for long-term stability, enabling team members to develop a deep understanding of their mission and work more efficiently over time.

Continuous Improvement

Squads often follow agile principles, emphasising iterative development and continuous improvement. They break their work into smaller, manageable pieces and work on them in time-bound cycles known as sprints. This iterative approach allows for adjustments based on feedback and changing requirements.

Responsiveness to Customer Needs

Customer feedback is highly valued, and Squads are encouraged to stay close to the end-users of the product. This helps ensure that the work they do directly addresses customer needs and provides value.

Transparency and Collaboration

Communication is open and transparent within Squads. Team members share information, celebrate successes, and address challenges collaboratively. This culture of open communication fosters collaboration and innovation.

Scaling Agile Framework

Organisations can scale the concept of Squads to multiple teams and departments, enabling the broader adoption of agile principles and practices. This scalability ensures that the agile framework becomes a fundamental part of the organisational culture.

The idea of Squads in product development is to create small, self-contained teams that can independently deliver features and functions, reducing dependencies on other teams and streamlining the development process. This approach can lead to greater efficiency, faster product development, and improved responsiveness to customer needs.

The Spotify model, with its Squads, Tribes, Chapters, and Guilds, has inspired many organisations to adopt similar agile practices and structures to enhance their product development processes and foster a culture of innovation and collaboration. You don’t have to follow this religiously so ensure that in whatever way you build your squads is conversant with the organisational culture, the team and the objectives you have set.

Now let’s look at how we can build an innovation focused squad.

Building an Innovation Focused Agile Squad

Unlocking Innovation: The Power of Innovation Squads

In today’s fast-paced and ever-evolving business landscape, innovation has become the cornerstone of success. Companies that can adapt, evolve, and continually find new solutions are the ones that thrive. To foster this culture of innovation, many organisations are turning to the concept of “Innovation Squads.” In reference to what I mentioned earlier these squads are hyper focused on their objective whether it’s Horizon 1,2 or 3.

What are Innovation Squads?

Innovation Squads, often referred to as Innovation Teams or Innovation Pods, are small, cross-functional groups within an organisation specifically designed to focus on innovation. These squads typically consist of individuals from diverse backgrounds, including marketers, engineers, designers, and business strategists. The key idea is to bring together people with different skill sets, experiences, and perspectives to brainstorm, develop, and implement innovative solutions.

Why are Innovation Squads Useful?

Diverse Perspectives: One of the primary advantages of Innovation Squads is their ability to harness a wide range of perspectives. When people from different departments and backgrounds come together, they bring unique insights and ideas to the table. This diversity of thought is often the spark that ignites groundbreaking innovations.
Faster Decision-Making: Innovation Squads are typically given a level of autonomy, which allows them to make decisions quickly. Without the bureaucracy and red tape that can slow down traditional decision-making processes, these squads can respond rapidly to changing market conditions and customer needs.
Focused Innovation: By dedicating a team solely to innovation, organisations can ensure that they have a group of experts whose primary goal is to develop and implement new ideas. This focused approach can be more effective than trying to innovate within existing departments where other responsibilities may take precedence.
Risk Mitigation: Innovation inherently involves risk. However, by working in small, dedicated squads, organisations can experiment with new ideas on a smaller scale before rolling them out company-wide. This minimizes the risk associated with large-scale innovation efforts.
Continuous Learning: Innovation Squads encourage a culture of continuous learning. Team members can experiment, fail, and learn from their experiences. Over time, this iterative process can lead to more successful and impactful innovations.

Building a Strategy Around Innovation Squads

Now it is imperative to mention that before you go and start setting up people in different squads you need to make sure to first articulate a strategy:

Identify Objectives: Clearly define what you want to achieve through innovation. Are you looking to improve existing products, enter new markets, or create entirely new offerings? Knowing your objectives will guide the work of your Innovation Squads.
Select the Right Team: Choose team members carefully, ensuring a mix of skills and backgrounds. It’s also essential to have a team leader who can foster a culture of collaboration and innovation.
Set Clear Boundaries: While giving autonomy to Innovation Squads is essential, it’s equally important to set clear boundaries and objectives. Clearly define the scope of their work, budget, and timelines.
Provide Resources: Ensure that the squads have access to the resources they need to succeed. This may include funding, access to data, technology, and training.
Encourage Experimentation: Innovation Squads should be encouraged to experiment and take calculated risks. Failure should not be punished but seen as an opportunity to learn and improve.
Feedback Mechanisms: Establish regular feedback mechanisms to assess the progress of Innovation Squads. Collect data on their efforts and outcomes to continually refine and improve their processes.
Integration with the Organisation: While Innovation Squads operate with autonomy, it’s essential to have a plan for integrating their successful innovations into the broader organisation. This includes training, scaling up, and aligning the innovation with the company’s long-term strategy.

Driving Sustainable Innovation: The Power of Cross-Functional Squads for a Greener Future

So now let’s look at an example case in a sustainability setup. Let’s hypothesise that we have 4 squads within our sustainability team working on four innovation projects – Agro Research, Company Culture, Market Volatility, and New Areas of Research.

Here’s how you can do it:

1. Define Clear Missions for Each Squad:

Start by creating four Squads, one for each innovation project. Each Squad should have a specific mission aligned with the project they are responsible for. For example:

Agro Research Squad: This Squad’s mission could be to develop sustainable agricultural practices or products that reduce environmental impact.
Company Culture Squad: Focus on enhancing the company’s sustainability culture and fostering eco-conscious behaviour among employees.
Market Volatility Squad: Work on strategies to adapt to changing market conditions and maintain a sustainable business in the face of uncertainty.
New Areas of Research Squad: Investigate and identify emerging areas of research and technologies that align with sustainability goals.

2. Form Cross-Functional Teams:

Assemble cross-functional teams for each Squad. Team members should possess the skills and expertise necessary to achieve the Squad’s mission. For example, the Agro Research Squad might include experts in agriculture, environmental science, and data analysis.

3. Empower Squads with Autonomy:

Empower each Squad to make decisions independently within their areas of responsibility. Allow them to set their own priorities and choose the most suitable methodologies for their projects.

4. Set Up Regular Feedback Loops:

Establish a feedback mechanism to ensure that each Squad is responsive to the changing needs of the organisation and its customers. Regularly review progress, gather feedback from relevant stakeholders, and adapt the Squad’s strategies accordingly.

5. Promote Open Communication:

Encourage open and transparent communication within and between Squads. Share insights, best practices, and lessons learned to foster collaboration and innovation. Holding regular cross-Squad meetings or workshops can facilitate knowledge sharing.

6. Customer-Centric Approach:

Stay close to the needs of your organization and your customers. Continuously seek feedback from both internal and external stakeholders to ensure that your innovations align with sustainability goals and meet customer expectations.

7. Experiment and Iterate:

Adopt an iterative approach to your innovation projects. Break the work into smaller, manageable pieces and work in time-bound cycles. Regularly evaluate and adjust your strategies based on the feedback and changing requirements.

8. Alignment with Company Values:

Ensure that the innovations developed by each Squad align with your organisation’s core values and sustainability objectives. Sustainability initiatives should be integrated into the company’s mission and culture.

9. Assess and Scale:

Periodically assess the impact of each Squad’s work. Consider how successful innovations can be scaled up and integrated into the broader organisation to maximise their benefits.

10. Collaboration and Cross-Pollination:

Promote collaboration between the Squads whenever applicable. For instance, the insights from the New Areas of Research Squad may inform the work of the Agro Research Squad or help the Company Culture Squad stay up to date with evolving sustainability trends.

By implementing Squads for your sustainability team, you can create an environment that encourages innovation, agility, and a customer-centric approach. This approach allows your team to efficiently address sustainability challenges, respond to market volatility, and explore new research areas while fostering a culture of continuous improvement and adaptability.

What Happens then once the Squad Mission is Achieved?

When the mission of a Squad is accomplished or no longer relevant, several options can be considered to ensure that the team’s expertise and momentum are effectively leveraged. Here are some possible next steps:

Mission Expansion or Refinement: If the original mission is completed but still falls within the Squad’s area of expertise, consider expanding or refining the mission to address new challenges or opportunities. This allows the Squad to continue contributing value to the organisation.
Disbanding and Reassignment: In cases where the Squad’s mission is no longer relevant, it may make sense to disband the Squad and reassign its members to other teams or projects. This is a common practice in agile organisations, allowing teams to be flexible and adapt to changing priorities.
Creation of a New Squad: If there are new initiatives or projects that require the expertise and skills of the former Squad members, a new Squad can be formed with a fresh mission aligned with the organisation’s evolving goals.
Knowledge Transfer and Documentation: Regardless of the outcome, it’s important to ensure that the knowledge and insights gained during the mission are documented and shared with the broader organisation. This knowledge transfer can help inform future projects and initiatives.
Celebration and Recognition: Celebrate the Squad’s achievements and recognize the team members for their contributions. This not only boosts team morale but also highlights the importance of the Squad’s work within the organisation.
Continuous Improvement: Assess the Squad’s performance and identify areas for improvement. Use the lessons learned to enhance future Squad missions and the organisation’s overall approach to innovation and problem-solving.
Exploration of New Missions: The skills and experience acquired by Squad members during their mission can be used to identify and tackle new challenges or opportunities within the organisation. Their expertise can be leveraged to fuel further innovation.
Alignment with Broader Strategy: Ensure that the Squad’s accomplishments align with the organisation’s broader strategic goals. If the mission was accomplished, assess how it contributes to the company’s long-term sustainability and success.

In summary, the end of a Squad’s mission should not be seen as the end of its value. It’s an opportunity to transition the team’s energy, skills, and experience to new projects or adapt to changing organisational needs. Agile organisations thrive on flexibility and adaptability, making it possible to continuously utilise the expertise and knowledge generated by Squads to drive ongoing innovation and growth.

Celebrate the Squad’s achievements and recognise the team members for their contributions.

Ensure that the Squad’s accomplishments align with the organisation’s broader strategic goals.

Cultivating Innovation and Agility: The Power of Squads in Organisational Strategy

The concept of Squads in both product development and innovation is a potent framework that brings agility, cross-functionality, and adaptability to the forefront of organisational strategy. Whether you’re enhancing your products or exploring new dimensions of sustainability, the Squad model offers a versatile structure that can be tailored to your specific needs.

Squads in product development bring together diverse skills and expertise, fostering autonomous teams with the freedom to make decisions and drive progress. This approach enhances product development efficiency, responsiveness to customer needs, and a culture of continuous improvement.

In the context of innovation, Innovation Squads harness the power of cross-functional teams dedicated to creative problem-solving. These squads adapt agile principles to develop groundbreaking solutions and bring a culture of innovation to the forefront of your organisation.

Furthermore, the flexibility of Squads allows you to stagger their formation to meet specific project needs. When a Squad’s mission is accomplished, it can gracefully transition to a new objective, ensuring that the expertise and knowledge developed remain a valuable asset to your organisation. The adaptability of this framework aligns with the dynamic nature of business and the ever-changing landscape of sustainability.

As you embark on your journey of building and leveraging Squads, it’s important to remember that you can tailor this model to your organisational culture and objectives. By embracing the Squad concept, you empower your teams to drive progress, promote innovation, and contribute to a sustainable, customer-focused future.

Your innovation-focused squads are not just teams; they are the engines of progress, creativity, and growth, enabling your organisation to thrive in a rapidly evolving world.