Metacool writes about Feedburner's hackathon. They gathered in their conference room, and brainstormed on projects that could be completed by 5:00pm. And then went for it. They put everything else aside, and at the end of the day, had built some really cool new features for their clients.
We've tried this at VIA to varying degrees of success. Usually, it's been a half-hearted attempt at "closing down at noon, and devoting the rest of the day to project X". The concept works - but I believe you've really got to commit to it wholeheartedly, for it to work. We'll try this soon at VIA.
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