Think team of great creative people working in same office, with door shut.
This works for any team no matter the skill level (ie if you have so-so developers, they will perform best in these circumstances even if better developers exist.)
And every step away from this a company takes the company is explicitly accepting its reduction in performance.
Have people spread over different desks in same office. meh
Have people spread over different offices and time zones?
Have no clear mandate? Confusing requirements ? constantly changing roster of management needing different items ?
In the end management has just one lever (like central banks) - how they org wise their people. It's not a hard job but to justify their own wages they have to keep fiddling. And it costs everyone