Software projects often operate in high-uncertainty scenarios. Best approach may often only be "obvious" in hindsight. It's not irrational to do it in parallel/ in several teams - in fact, I'm surprised it's not happening more often.

I disagree that (internal) competition unequivocally leads to better-than-you mindset. If done properly, in an open and sharing mindset – one might call it scientific, with expectations and criteria defined up front and with the projects objectively compared against the criteria, then it will work. I have also this work. It takes effort to come up with criteria and metrics beforehand but that is what makes it different from throwing spaghetti at the wall .

> If done properly

Any guidelines? What to think about

First and foremost, a safe (team) environment. This has to be created over time and there are few shortcuts.

In addition, for each experiment you need: a defined time window, up front criteria by which to judge the results, optionally form solution ideas together, give all teams the same amount of time and opportunity, after the experiment is finished each team presents their solution in a fact based manner in perspective of the criteria. After this the teams rotate and see what they can improve on their original solution with the remarks and information from the other tracks. After this decide together or with an informed captain which solution to continue. After this there should be no hard feelings, no personal consequences. Each team should be treated equally because they all contributed to the end goal. This is what will give you a fair competition and help create team safety.

This can be done on all kind of levels, between one day for something small and two/four weeks for the bigger challenges. Making it bigger than this will incur a lot of stakes/vested interest.

Thanks!

> After this the teams rotate and see what they can improve on their original solution

Interesting idea

>Internal competition on the same project shows a lack of confidence from management...

I'd disagree, internal competition (like it or not, and yes it doesn't sound fun and often doesn't feel great or fair) can be a very effective motivating strategy. And management is used to using this with sales teams, everyone in sales is always competing with each other. It's never fair, they'll have unequal markets, for example, but the competition is incredibly motivating. When I was in sales long ago, the drive to be the best and regarded as such was even more motivating than just getting more commissions. It's dog eat dog but for better or worse it works.