I’ve seen significant increase in information sharing on project teams due simply to having daily scrums (agile status meetings). I’ve wondered how much more would communication (and therefore team performance) improve if I had the team members moved to cubes in the same area. The evidence from Tom Peters, below, is significant. Note how close teammates need to sit for optimal interaction.
“…if you and I are separated by 5 yards or less, the odds of us communicating at least once a week are nearly 100%. At 10 yards of separation, the odds plummet to about 9%; and said odds are almost constant at 3% if we're 30 to 100 yards apart.”
Quote referenced from Tom Peters’ weblog here.