The overall objective of this study is to empirically investigate organizational/managerial factors affecting system development team operation. The contributions of this research project are two-fold. First, this study examined various organizational/managerial factors that made team operation successful. Second, we presented the key success factors among the identified success factors of team operation. A field investigation of 68 system development teams located around YoungNam area indicates that motivation, leadership and egalitarian team culture are success factors of team operation. Especially, key success factors are leadership and egalitarian team culture.