Ha ha! That's a great read. I hadn't seen it before. Thanks. One of the things I've heard about the fabled C3 project was that before Kent Beck was brought in, the team was incredibly unhappy. He introduced XP and it changed the attitude of the team. (BTW, I've talked with a few people who were on the team and they have verified this).
I've had one phenomenal success with XP -- the first one I worked on, and it was a similar situation. We removed a manager that was keeping the developers under his thumb and let the programmers write code.
Since then, I've had successes and failures with approximately XP shaped teams, but I've never even come close to that initial success (85 KLOC of code in a completely new coding environment, with between 3-6 developers over a 5 month period with exactly 12 bugs at the end. Won an award at Comdex and the core technology developed brought in hundreds of millions to the company). The team was rocking when we delivered, but big companies being big companies, they split us up ;-).
Many times I've thought back on that time and wondered, "What exactly is the difference between then and now?" Many times I've come to the conclusion, "The team was ready to work together. They had suffered so badly before and they were so happy to have their shackles removed, that they couldn't help but succeed".
Don't get me wrong. I still feel that XP can work extremely well -- after all, it did. And when I look at problem after problem after problem in other situations, I can point to exactly what is going wrong. But the reality is that some people just aren't going to do it the way they need to do it. That's a people problem, not a technical problem.
I often say when I go into a job, "I know exactly 1 way to succeed dramatically. That doesn't mean that there aren't other ways to do it. It just means that I don't know what they are". Inevitably people ask me to succeed in ways I don't know (in advance) how to succeed in. That's life, isn't it ;-)
Pivotal Labs sounds like fun :-) I hope it keeps going like that for you.