Want to develop your teams like Spotify?

Nowadays, the roles and skills of project managers have become increasingly complex. A project manager must possess the skills to navigate around teams, building connections that empower project execution. Building effective project teams isn't just about assembling the right skills—it's about creating an environment where people can collaborate, adapt, and deliver results together. Here's how to approach team formation and development with practical, human-centered strategies.

Start With Clear Purpose and Roles

Adults are not motivated to do anything unless they understand the “why” of what they are doing. Similarly, every team member needs to understand not just what they're doing, but why it matters. Begin by clearly defining the project's purpose and each person's specific role. You are introducing a new project to them, so avoid the common mistake of assuming people will figure out their responsibilities naturally. Create a simple RACI matrix (Responsible, Accountable, Consulted, Informed) to eliminate confusion and prevent overlap.

When roles are clear, team members can focus on execution rather than politics. This clarity also helps identify skill gaps early, allowing you to address them through training or additional resources.

Focus on Psychological Safety First

Google's Project Aristotle research showed that psychological safety—the belief that team members can speak up without fear of negative consequences—is the strongest predictor of team effectiveness. Create this environment by encouraging questions, admitting your own mistakes, and responding constructively to failures.

Hold brief weekly check-ins where team members can voice concerns or suggest improvements. Make it clear that raising problems early is valued, not penalized. This simple practice prevents small issues from becoming project-threatening crises.

Build Trust Through Transparency

Ensure transparency with each other. Share information openly, including project constraints, budget realities, and organizational challenges. When people understand the bigger picture, they make better decisions and feel more invested in outcomes. Establishing this transparency will also help you gain the visibility of any project risks that might be coming your way. Use collaborative tools that provide real-time visibility into project progress, but avoid over-surveillance that undermines trust.

Regular one-on-one conversations with team members help you understand their individual motivations, career goals, and current workload. This insight allows you to assign tasks that align with their strengths and development needs.

Develop Skills Systematically

High-performing teams continuously learn together. Create opportunities for cross-training so team members understand each other's work. This builds empathy, improves collaboration, and creates backup capacity when someone is unavailable.

Encourage pair work on complex tasks—it's an effective way to share knowledge and catch errors early. Schedule brief post-mortem discussions after completing major milestones to capture lessons learned while they're fresh.

Case Study: Spotify's Squad Model

A classic example in the Agilie management space, spotify revolutionized team formation by organizing around small, autonomous "squads" of 6-12 people with all the skills needed to deliver their piece of the product. Each squad was clarified with a clear mission, minimal external dependencies, and the authority to make decisions quickly. This approach reduced coordination overhead and increased team ownership, contributing to Spotify's rapid scaling from startup to global platform. A carbon copy of this example might not fit if applied in your team. What can be taken as an inspiration here is how defining the team roles provided the autonomy and clarity for smooth functioning of these teams. This also led to establishing trust and transparency within these teams. Effective project teams aren't born—they're intentionally developed. Invest time in clear communication, psychological safety, and continuous learning. Remember that team dynamics evolve throughout the project lifecycle, so stay attentive to changing needs and adjust your approach accordingly. It is an ongoing responsibility of a project manager to develop their teams. So try out the practices mentioned here and play around with it, until you find the right fit for your team.