Structuring engineering organizations

In the early stages of a startup, working with a small team can be exhilarating due to the close-knit environment and direct ownership of the codebase and business decisions. However, as the company grows, complexity increases, making it challenging to maintain the same level of ownership and communication. To manage this complexity, organizations form teams that act as silos, helping to divide the business domain into manageable parts and allowing teams to focus on specific objectives and codebases. However, common organizational structures such as separating frontend and backend teams or using shared backlogs can limit ownership and increase cognitive load. Effective organization design involves tradeoffs and prioritizing business outcomes, which are best achieved when teams can make quick decisions, iterate rapidly, and minimize dependencies. The design process involves balancing outcomes, features, people, and architecture, often resulting in full-stack teams that combine various skills. Leadership responsibilities include aligning team objectives, managing dependencies, and ensuring effective communication. As organizations scale, platform teams are created to standardize processes and increase efficiency across product teams. Special teams may also emerge to address specific challenges, but ultimately, the organization structure should aim to minimize dependencies and enhance business outcomes.