Ruven E Brooks wrote:
For other organizations, with a different set of pathologies, the medicine might be more often fatal
than the disease.

Ruven,

I think this is the key insight of the story. And if you don't mind a shameless plug: in a recent study of seven small companies we found, among other things, that their practices seemed to depend considerably on the context in which they operated; and we observed that practices should not be prescribed generally, but with context in mind.

We're presenting the paper in the RE'07 conference (in Delhi, on Oct 17). It's geared to requirements engineering, but it's also related to broader software project management issues. If you're interested, you can find an electronic copy of the paper here:
http://www.cs.toronto.edu/~jaranda/pubs/REintheWild-RE07.pdf

Thanks,
Jorge

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