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How can you align your estimation process with your project management methodology?

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Estimation is a crucial aspect of software project management, as it affects the scope, budget, schedule, and quality of the deliverables. However, different project management methodologies have different approaches to estimation, and it is important to align your estimation process with the one that suits your project context and goals. In this article, we will explore how you can align your estimation process with four common project management methodologies: waterfall, agile, hybrid, and lean.

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Tanveer Mohammad Noman

AVP @ SEBPO | MBA, PMP, Red Hat Certified
Bulama Yusuf

1 Waterfall estimation

Waterfall is a traditional project management methodology that follows a linear and sequential process, where each phase is completed before moving on to the next one. In waterfall, estimation is done upfront, based on the detailed requirements and specifications of the project. The estimation process usually involves breaking down the project into work packages, tasks, and subtasks, and assigning them time, cost, and resource estimates. The estimates are then aggregated to form the baseline for the project plan and budget. To align your estimation process with waterfall, you need to have a clear and stable scope, use historical data and expert judgment, and apply contingency and risk factors.

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Tanveer Mohammad Noman

AVP @ SEBPO | MBA, PMP, Red Hat Certified
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Monitoring and reporting against the original estimates is not discussed here but I think it is a key part of managing projects under waterfall. Comparing actuals to the baseline plan allows variances to be identified and addressed.

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2 Agile estimation

Agile is a flexible and iterative project management methodology that adapts to changing requirements and customer feedback. In agile, estimation is done continuously, based on the features and user stories that are prioritized in the product backlog. The estimation process usually involves using relative units, such as story points or t-shirt sizes, to measure the complexity and effort of each user story. The estimates are then used to calculate the velocity and capacity of the team, and to plan the iterations or sprints. To align your estimation process with agile, you need to have a collaborative and cross-functional team, use empirical data and feedback loops, and apply refinement and calibration techniques.

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Tanveer Mohammad Noman

AVP @ SEBPO | MBA, PMP, Red Hat Certified
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Emphasizing that estimates in Agile are intended to be rough, relative values rather than precise predictions of work. This allows for flexibility and continuous re-estimation.

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Bulama Yusuf
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Software projects that choose an Agile approach generally value flexibility and concrete user feedback more than overall project predictability. Even with that there is value in being able to estimate the little chunks of work that need to get done in an Agile project. The flexibility to handle change as they arise on an Agile project means that time and effort (attention) will be directed to handling changes rather than sticking to “estimates”.

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Luis Salazar

LinkedIn's Top Voice ??| Potencio a tus equipos y a tu empresa, un paso a la vez.
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Fostering a culture of "delivered-to-user software is the main measure of progress" is a powerful mindset that can deeply align your estimation process with your agile software project management approach. This is so because Agility thrives on feedback and adaptability. By making delivered software the primary measure of progress, you create a feedback loop with users. This ensures that the software being delivered aligns with their evolving needs and expectations, reducing the risk of building features that won't be used or appreciated. Also, estimation is a tricky process in software development. The delivered-to-user software approach encourages a more realistic assessment of how much work can be accomplished in each sprint or iteration.

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3 Hybrid estimation

Hybrid is a project management methodology that combines elements of waterfall and agile, depending on the nature and needs of the project. In hybrid, estimation is done at different levels of granularity, based on the degree of uncertainty and variability of the project. The estimation process usually involves using both top-down and bottom-up methods, and both fixed and variable estimates, to balance the accuracy and flexibility of the project plan and budget. To align your estimation process with hybrid, you need to have a clear vision and scope, use a mix of data sources and methods, and apply adjustments and trade-offs.

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Bulama Yusuf
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We have used this approach on numerous software projects we have handled. Especially for projects that have a combination of clear requirements and not so clear requirements. So we start out trying to understand the full scope of what needs to be done and estimate delivery for the whole project. Estimate, not predict or commit. This first step allows us to clearly see the parts that have not so clear requirements and how they fit into the overall project. For these parts we take a more flexible approach to estimation which is basically to focus on figuring things out as we progress instead of sticking to estimates. Also, estimates are just estimates but people tend to take them as predictions ????♂?

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4 Lean estimation

Lean is a project management methodology that focuses on delivering value to the customer while eliminating waste and optimizing flow. In lean, estimation is done as minimally as possible, based on the value proposition and hypothesis of the project. The estimation process usually involves using lean metrics, such as cycle time, throughput, and lead time, to measure the performance and efficiency of the project. The estimates are then used to optimize the value stream and reduce the batch size and work in progress. To align your estimation process with lean, you need to have a customer-centric and value-driven mindset, use validated learning and experimentation, and apply continuous improvement and pull systems.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you align your estimation process with your project management methodology?

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4

5

1 Waterfall estimation

2 Agile estimation

3 Hybrid estimation

4 Lean estimation

5 Here’s what else to consider

Software Project Management

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How can you align your estimation process with your project management methodology?

1

2

3

4

5

1 Waterfall estimation

2 Agile estimation

3 Hybrid estimation

4 Lean estimation

5 Here’s what else to consider

Software Project Management

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