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If the company does start to become bigger, and groups in charge of certain aspects of the products start to form, is it possible to still apply this model on the smaller formed groups? Then the weekly leader of each group meet and therefore encourages employees to maintain the "bigger picture" of the product.

Is this doomed to fail? what do you guys think?



Yes, that's what the "Scrum of Scrums" idea is meant to solve, in exactly that way:

http://www.xqa.com.ar/visualmanagement/2009/08/scrum-of-scru...




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