Does Radical Collocation Help a Team Succeed?
In this research paper published recently from the University of Michigan, they evaluated 6 teams in a Fortune 50 automobile company to study the impacts of radical collocation. They define radical collocation as "putting an entire project team in one room for the duration of the project". Results Simply put, the results were very positive - productivity doubled over previous projects; team, sponsor and end user satisfaction were high, and the team members were more positive about their experience going out than when it first began. Sounds like a trifecta!
"In simple terms, the pilot teams produced double the number of function points per staff month from the previous baseline for the company. The time to market (cycle time) dropped to almost 1/3 as compared to the company baseline, and even lower than that produced by the industry as a whole. Both these results are statistically significant at p<.001 using z scores against the single baseline number."