# Empirically Calculating Estimates for Teams

October 25, 2017

If you working in an agile software development life cycle then your team is making an estimate on how much work to commit to each sprint. Even if you are not utilizing an agile process it is more than likely that you will need to come up with an estimate for a team of developers or at least collaborate with the team to assist in the estimating process. In this post, I will discuss an empirical approach to calculating more accurate estimates for teams.

### The Variables

When calculating an estimate it is important to determine what variables exist. It is impossible to give an accurate estimate without knowing how many people will be on the team. In conjunction with that, your estimate will be more accurate if you know what each team members’ commitment levels are to the project. Will all team members be working full time on this project or will some team members be working part time? Are any of your team members taking time off soon? All of these factors can alter the accuracy of your teams estimate.

You might be seeing where I am going with this, we are going to utilize the team members and their commitment levels to calculate how much effort is available. Measuring effort in hours might not be useful because everyone has a different skill level, so even if you did calculate the total number of hours available for a team I don’t think it would be very useful. So if not hours, what units should our total effort be measured in? Points! A nearly arbitrary unit that means exactly what you want it to mean.

A point is just a reference value, your team will define what one point means. Ideally, points are measures of task complexity since complexity is constant for a task but each team member will complete a task in a different amount of time. Later, I will discuss how points allow you to abstract away the difference in skill for each team member to produce more accurate estimates.

To determine what one point is defined as, have the team find a reference task that everyone can agree to be one point. After you have defined what a one point task is the team can then decide on how many points an easy, difficult or very difficult task should be by looking at past and future work. Once you have those reference tasks your team will be able to figure out how many points worth of work actually exist to complete the project. This will include breaking down the project into tasks that can be given point values based on the scale the team decided on. Once all of these tasks are completed if nothing comes up the project should be complete.

We need to know how much work each teammate can complete for a given time period. Velocity for cars and programmers is pretty analogous. For cars it is the measure of distance over time and for programmers it is the measure of work over time. You should ask for individual velocity estimates for how many points each teammates completes a week. Although, you may not need to do this, perhaps everyone’s individual velocity can be determined from pre-existing data that was collected via your project management software.

Velocity is the key part of this formula that abstracts away how many hours someone will be working and exchanges it for how much work they will complete over some time period. Whether you have the data available to simply determine this information for each team member or you are going to estimate it, the important part is being as accurate as you can here, since it can have a more significant impact on your estimate due to it being hardest variable to estimate.

With all that being said here are the variables I have identified so far: project complexity in points, team members, individual commitment, and individual velocity.

### Constructing a Formula

Collecting all that information is only hard the first time you have to do it. If you have to do it again for the same project it will be much easier since you will already have some of the data collected and you can even use past success or failures to assist in a another estimate. Lets go over an example and use that to construct a formula that can be used to calculate the estimate itself.

Imagine, your boss or customer comes to you and asks you how long it is going to take to complete “Epic Project #42”? Well that is a complicated project so you tell him you have to think about it.

You learn that a team of programmers will be working on the project with you, what a relief. Jon, Linus, Dan, Sue and yourself will all be working on the project. Great, a team of five! You will be able to get some real work done.

Although, Jon and Dan are only working on this project half time, and Sue can only spend three quarters of her time on this project because she is finishing up another project that is in need of her expertise.

The team has a meeting to decide what one point means. The team collectively compares the work they have completed in the past and comes to the conclusion that an easy task is one point, a difficult task is 2 points and a very difficult task is 4 points.

After that meeting your team has another meeting to find out all the tasks that need to be completed to get “Epic Project #42” completed. At the meeting the team spends most of the day decomposing the project into 50 different tasks making up 175 points worth of work.

The next day, you gather some information from your teammates and your project management software to determine individual velocities for all teammates relative to a one week period. You learn that all of your team members have different velocities relative to a one week period, as expected. Jon is a new hire so his velocity is 4 points. Linus and Sue have been here for a year so they both have a velocity of 8 points. Dan is a senior developer and he has a velocity of 16 points. You are a rock star so you have a velocity of 32 points.

Now have all the data we need, we can calculate an estimate!

Since velocities have a time component I hard coded them relative to the previously mentioned one week period to help demonstrate how the calculation is done. Although, days could be used instead of weeks but for this calculation to work correctly the velocity for each teammate would need to be hard code to the velocity for a single day since duration is multiplied by the individual velocity.

The code essentially reads as the following, for all team members multiply their commitment by their velocity to calculate the total individual velocity and sum them together to get the teams total velocity. Next, if you divide the total project complexity by the total team velocity you get the total number of time periods it would take to complete the project, for this example the calculation was done in reference to a one week time period.

In this case `totalTeamVelocity` is `56` points which means if we divide `projectComplexity` and `totalTeamVelocity` the value for `estimate` is `3.125` weeks. Which means that the project will be completed in approximately three weeks. A pretty precise estimate that can be tweaked by altering commitment levels, the decomposition of tasks for the project, or by adding and removing team members (adding more people does not always mean a project will be done faster).

### Closing Thoughts

The example I gave is for a short project that will only take a few weeks. The situation changes if you need to estimate something that might take years. I would think hard before trying to give an estimate that is greater than 7 or 8 months, it will be very hard to be accurate. If the project is just inherently large then perhaps it can be decomposed into milestones that create more obtainable goals and all of those milestones can be individually estimated to create a more accurate estimate with obtainable goals along the way.

This calculation is not perfect. The unpredictable happens, people get sick, family emergencies come up, and sometimes people quit to travel the world. In conjunction with that, sometimes we make mistakes and we have to spend time fixing things before we can make forward progress. All of these things are variables we can not estimate very accurately if at all.

I felt like this was quite a journey. Thanks for taking if with me! The intent was not to create a rigid algorithm to use to create accurate estimates but rather to demonstrate what some of the valuable data points worth gathering are when calculating accurate estimates for teams. I would be interested in hearing what data you find valuable when calculating estimates, please leave a comment below sharing your thoughts.