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From the Ask Joel forums:

I think that the reality is that design and code are one - and every really succesful, productive software house I've ever worked for operates like this. Those that disrespect mere 'coding' and have a rank of higher paid, non-coding 'architects' who pass the code on to cheap minions struggle. Every software house I've known that works like this invariably struggles with way over budget projects. They then use creative accounting, time allocation and hundreds of hours unpaid overtime to keep the illusion going.

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