Hello Alison,
I'd like to put in a word of support for a light-weight version of a structured methodology such as PRINCE2. For English Heritage and projects we commission we've developed Management of R&D projects in the Historic Environment (MoRPHE), which is PRINCE2 based (i.e. the focus is on who does what, staged projects with reviews, and a clear definition of what products are expected). You would be welcome to have a look at it - its a free publication at http://www.english-heritage.org.uk/publications/morphe-project-managers-guide/
I'm not an expert in Agile approaches http://en.wikipedia.org/wiki/Agile_management but my concern over an iterative approach is that it unbal;ances control of the project in favour of the software expert. That may be fine, but my view is that its the service provided by the technology that is important, rather than the technology itself, and the museum folks are best placed to judge the effectiveness of that end result.
Ed
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