Agile methodologies represent a ‘people’ centered approach to delivering software. This paper investigates the social processes that contribute to their success. Qualitative grounded theory was used to explore socio-psychological experiences in agile teams, where agile teams were viewed as complex adaptive socio-technical systems. Advances in systems theory suggest that human agency changes the nature of a system and how it should be studied. In particular, end-goals and positive sources of motivation, such as pride, become important. Research included the questions: How do agile practices structure and mediate the experience of individuals developing software? And in particular, how do agile practices mediate the interaction between individuals and the team as a whole? Results support an understanding of how social identity and collective effort are supported by agile methods.