From my (limited) experience, scrum such as this is really geared towards dealing with the interface between the technical team and a bureaucratic environment in which they need to operate, although even on our small (2 - 3 man team depending on the project) we use elements of this methodology. It's just that we don't have anyone to report to, per se.

So really I think this applies to larger software teams, or small software teams (ie. 1 man technical departments) surrounded by non-technical people to whom the development process is traditionally a frustratingly black box.