While the long term effects of the COVID-19 pandemic on software professionals and organizations are difficult to predict, it seems likely that working from home, remote-first teams, distributed teams, and hybrid (part-remote/part-office) teams will be more common. It is therefore important to investigating challenges associated with new remote and hybrid work for software teams and organizations. Consequently, this paper reports a year-long participant-observation grounded theory study, and presents the resulting theory of software team coordination. Briefly, coordination depends on group cohesion, trust, communication and family responsibilities, while poor coordination leads to misunderstandings, help requests, dissatisfaction, ill-defined tasks, method engineering and reductions in overall software project success.