Software process improvement in very small enterprises: does it pay off?

This paper discusses how and under which circumstances software process improvement can be rewarding for small software companies. It describes the course of a process improvement project which was jointly carried out by three small companies. Based on the experience gathered in the project four critical success factors – (1) a flexible, tailored assessment and improvement approach, (2) a functioning network of small enterprises and their environment, (3) external technical help by mentors for change and (4) external financial support coupled to some conditions for performance – have been identified. Together they support a fifth factor, namely the ability to utilize not anticipated side-effects of a project. All factors as well as the problems experienced and the lessons learned are explained in detail and are reflected in relation to current knowledge about the diffusion and adoption of software technologies and with regard to quality management techniques.