The aim of this document is to present an improved model for the evaluation of software development methodology (SDM ). The model does not evaluate SDM as a whole, but through SDM’s key activities. The document consists of literature review, developed evaluation model and case study, where the
developed model has been utilized. In the second chapter (literature review) Rogers’ Diffusion of innovations theory is presented, along with its related theories, SDM evaluation model suggested by Vavpotiˇc and Hovelja, and Balanced scorecard. In chapter three developed model is presented, which is
then used in the case study, covered by chapter four. The developed model was utilized in a company and yielded positive results.