Debbie Madden Budgeting vs Estimating for Agile Projects
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The document discusses the differences between estimating and budgeting for agile projects, emphasizing that effective project management hinges on identifying decision points before estimation. It presents a four-step solution to improve decision-making: identifying necessary decisions, aligning estimate precision with these decisions, budgeting with accuracy, and using ranges with confidence levels. The author argues that if the specific decision is unclear, both estimating and budgeting become ineffective.
Debbie Madden Budgeting vs Estimating for Agile Projects
- 1. Budgeting vs. Estimating for Agile Projects Debbie Madden CEO, Stride stride.nyc debbie@stride.nyc @debbiemadden200
- 2. How Much Is This Going to Cost? stride.nyc
- 3. PART I: ESTIMATING – A HISTORY PART II: THE PROBLEM PART III: THE 4 STEP SOLUTION stride.nyc
- 4. PART I: ESTIMATING – A HISTORY PART II: THE PROBLEM PART III: THE 4 STEP SOLUTION stride.nyc
- 5. stride.nyc
- 6. 2001: Agile Manifesto stride.nyc
- 7. stride.nyc
- 8. stride.nyc
- 9. 2013 – EstimateGate • #noestimates • “Estimation is neither good nor bad” Martin Fowler (Feb) • “Estimation is Evil” Ron Jeffries (Feb) • “Estimation is a Necessary Evil” Ron Jeffries (April) stride.nyc
- 10. PART I: ESTIMATING – A HISTORY PART II: THE PROBLEM PART III: THE 4 STEP SOLUTION stride.nyc
- 11. How Much Is This Going to Cost? stride.nyc
- 12. stride.nyc
- 13. stride.nyc
- 14. Teams Don’t Like Estimating Takes a lot of time There’s uncertainty Estimates gets abused Locks team into feature-level decisions prematurely stride.nyc
- 15. PART I: ESTIMATING – A HISTORY PART II: THE PROBLEM PART III: THE 4 STEP SOLUTION stride.nyc
- 16. PART III: THE 4 STEP SOLUTION stride.nyc Step 1: Identify Decisions
- 17. Should We… • Start this project or kill it? • Hire more people or outsource? • Start marketing this feature? • Build this project next or deprioritize it? • Launch a startup? • Allocate budget this quarter? • Code this set of stories next? stride.nyc
- 18. PART III: THE 4 STEP SOLUTION Step 2: Match Precision to Decision stride.nyc
- 19. stride.nyc
- 20. stride.nyc
- 21. Estimating Budgeting • < 1,000 foot view • Iterations • Sprints • > 1,000 foot view • Prioritizing Projects • Starting Projects • Hiring/Outsourcing • Allocate Budget • Start a Company stride.nyc
- 22. Estimate When Necessary stride.nyc
- 23. If you can’t identify which decision you are making, estimating AND budgeting are both a waste of time. stride.nyc
- 24. PART III: THE 4 STEP SOLUTION stride.nyc Step 3: Budget
- 25. Time Budget Accuracy stride.nyc
- 26. Online Book Store Shopping Cart Browse Books Search Books Manage Inventory Preview Inside of Book How Much Is This Going to Cost? ___?____ stride.nyc
- 27. Online Book Store Shopping Cart Browse Books Search Books Manage Inventory Preview Inside of Book Title 1 – 2 weeks Author Within Book 1 – 2 weeks ? 2 – 4 weeks + ? How Much Is This Going to Cost? _____________ stride.nyc
- 28. Online Book Store Shopping Cart Browse Books Search Books Manage Inventory Preview Inside of Book Title 1 – 2 weeks Author Within Book 1 – 2 weeks 4– 16 weeks 6 - 20 weeks How Much Is This Going to Cost? _____________ stride.nyc
- 29. Online Book Store Shopping Cart Browse Books Search Books Manage Inventory Preview Inside of Book Title 1 -2 weeks Author Within Book 1 – 2 weeks How Much Is This Going to Cost? _____________ stride.nyc
- 30. PART III: THE 4 STEP SOLUTION Step 4: Ranges and Confidence Levels stride.nyc
- 31. Online Book Store Topic Shopping Cart Browse Books Search Books Manage Inventory Preview Inside of Book Time (weeks) 4 - 8 1 - 2 6 - 26 12 - 96 8 - 48 Total: 31 - 180 stride.nyc
- 32. Online Book Store Topic Shopping Cart Browse Books Search Books Manage Inventory Preview Inside of Book Time (weeks) 4 - 8 1 - 2 6 - 26 12 - 96 8 - 48 Total: 31 - 180 stride.nyc Money 100k – 200k 25k – 50k 150k – 450k 300k – 2.4M 200k – 1.2M 775k - 4.3M
- 33. Range • Decision: Should we build this project? • Data: We expect the project to cost 775k – 4.3M stride.nyc
- 34. Range • Decision: Should we build this project? • Data: We expect the project to cost 775k – 4.3M If Budget = $500k No If Budget = $5M Yes If Budget = $2.5M Maybe stride.nyc
- 35. Online Book Store Topic Shopping Cart Browse Books Search Books Manage Inventory Preview Inside of Book Money 100k – 200k 25k – 50k 150k – 450k 300k – 2.4M 200k – 1.2M stride.nyc Time 4 - 8 1 - 2 6 - 26 12 - 96 8 - 48 Priority 1 2 4 3 5
- 36. Online Book Store Topic Shopping Cart Browse Books Search Books Author Title Within Book Manage Inventory Preview Inside Book Money 100k – 200k 25k – 50k 150k – 450k 300k – 2.4M 200k – 1.2M stride.nyc Time 4 - 8 1 - 2 6 - 26 12 - 96 8 - 48 Priority 1 2 4 3 5 Required? Y Y Y Y N Y Y
- 41. PART III: THE 4 STEP SOLUTION stride.nyc Step 1: Identify Decisions Step 2: Match Precision to Decision Step 3: Budget Step 4: Ranges and Confidence Levels
- 42. Ballpark – For You • stride.nyc/ballpark • Code - cto-summit • Free - 60-minute budgeting session • Free - Ballpark for 3 months stride.nyc
- 43. Questions? Debbie Madden CEO, Stride stride.nyc debbie@stride.nyc @debbiemadden200 stride.nyc