This article reports an empirical study on effectiveness of software development teams. It was predicted that both the extent to which design methods are used and team leaders' goal orientation is related to team effectiveness. Follow-up data (6-12 months after first assessment) were available from 25 German and Swiss software development projects. Hierarchical regression analysis showed that use of design methods and team leaders' goal orientation predicted team efficiency and changeability of the software product. In addition, goal orientation predicted maintaining schedule and budget. Practical implications of this study refer to the necessity to consider both the use of design methods and leadership issues when aiming at effective software development projects.