What are the most effective ways to estimate project time in banking?

Thinking about scope in terms of domains can assist as well so you can gauge how much relative time is needed in various aspects. For instance, business, process, data, technology, end user (client or internal), risk/compliance/legal, design, metrics are example 'domains'. An enhancement to a platform may only require consideration of 3 aspects of these domains however a large transformation program may require all. It is another lens to consider that can help think through the timeline, participants and requirements to get the work done. Ensuring the initial deliverable can be measured in some way also helps to contain scope so long as you have a benchmark to measure against.

1.Work Breakdown Structure (WBS): Break down the project into smaller, more manageable tasks and activities. 2.Expert Judgment: Seek input from experienced professionals within the banking industry. 3.Historical Data Analysis: Review past projects within the organization. 4.Parametric Estimating: Use mathematical models based on historical data to estimate project time. 5.Three-Point Estimation: Instead of relying on a single-point estimate, use three estimates for each task or activity: optimistic, pessimistic, and most likely. 6.Critical Path Method (CPM): Identify the critical path. 7.Resource Availability and Constraints 8.Contingency Planning 9.Stakeholder Input and Collaboration 10.Iterative Refinement

Think about creating discrete units of work that can be delivered that can be measured and add value. Then determine the skills needed to work on that. Align milestones considering the methodology your team operates with. (Agile, 6 Sigma, Lean, hybrid).

Usually a combination of these techniques together with a small but experienced team of people who have delivered similar projects in similar environments is a good way to go. Defining discrete story points or user stories often allows for easier way to estimate at a sprint level or refine an initial ballpark as you go. Over time you can build your own repository of project data to use in your team's estimation process. Tools like AI will likely come into play to help make the tedious data gathering and analysis more efficient.

Consider roles and responsibilities of core team members and contributors. Thinking about potential risks in the program and drafting a RACI chart can help identify where buffer may be needed to mitigate risks and who has ownership of deliverables. Also, the culture of your organization should be considered to determine how long decisions and sign-offs may take. Ensuring there is time for milestones and socialization is key. For larger programs, do not underestimate things like onboarding new team members, testing, compliance and legal reviews, change management and roll out. Many banking programs involve external constituents whether they are clients, partners or market / ecosystem participants so it is important to add buffer on those.

Be prepared to stop and change course if something isn't working. It is more important to fail fast than slow. Consult your peers for creative ways to address issues. A market event, or business priority change can quickly affect an ongoing project. Having flexibility and versatility as a team is table stakes in this environment to successfully delivering new products and services. Of course if you project has any client impact, direct or indirect, getting input and ideas from your clients along the way whether formally or informally to help navigate should ensure you deliver something that will add client value and provide a better client experience.