Without going into to much detail the teams where split with 4 in one department and 4 in another. This caused direction problems which we are no trying to fix.
We have setup several roles within the team which will focus on certain aspects of the development.
Software / System / Application developer
Courseware / Interaction / Graphics developer
Server / Database administrator
Project / Service / Resource Manager
Business Analyst / Customer Advisor / Solution architect
Split these roles into
Bespoke Content Development
END User Tools
All developers where allowed to choose where they wanted to place their skills and were most evenly distributed, this resulted in an empowerment of the developer and refreshes the interest and focus of the team.