As I writer, I feel the author is painting a picture that has been painted a thousand times before. In that particular paragraph, the additional material dominates the paragraph at the expense of the main point (which itself is strangely spread over a block of paragraphs).
As a reader I felt my time was wasted. Some explanation was in order, but I did not need to know the origin of the technique. "Work-process manual" is snooze-inducing.
Rewritten:
This spring, after staff at Washio had gathered for their daily "stand-up" meeting–in which employees are kept on their toes by giving status updates literally on their feet–operations manager San Nadler broke some bad news.
This draws the reader a bit into the meeting and explains what is meant by a "stand-up meeting" without bogging the reader down in details or the "philosophy of software development." If that philosophy was important for the author to communicate, it really deserves its own paragraph.