Software Development Case Study is a capstone subject in the B.Sc. (Computing) degree at the University of Technology, Sydney. Its purpose is to give students as realistic an experience as possible of working in an IT industry environment on software development. At the same time we are trying to ensure that certain educational aims, such as students being exposed to programming in the large and having a sense of engaging with this task and completing it, are met. In analyzing the way we run the course we use Ashby's concept of requisite variety: that for a system's essential variables (subject aims in our case) to be in control the regulator (subject coordinator) must be able to deploy enough variety (or maneuvers) to match that of the system being regulated (class). In our case the regulatory variety relates to the type and complexity of the projects on offer as well as to the project roles; this has to match the variety of vocational needs and interests brought to us by the students. We give examples of how conflicts, e.g. between educational and industrial aims, can trigger the emergence of new regulatory variety (such as specialized approaches to the task). We also describe how the coordinator's regulatory variety is amplified by involving the students: e.g. in the framing of the project requirements, where we solicit input from the students via proposals; or in the running of the teams, where the students manage themselves but with monitoring by liaison officers. This student-centered approach is designed to promote project ownership and team responsibility. Although it also produces greater task uncertainty than the students are used to it provides them with greater opportunities for exploration and creativity.