I think that we had a successful approach at my last job, as we delivered the project on time and with only a few problems found in the workplace. However, only 3 people worked on the product, so I'm not quite sure how it will scale for larger teams.
We have written specifications for the entire product, but without going into details and with emphasis on the user interface. This was a means for us to understand what should be done, and for the scope of the project.
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