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BW10 Session 6/8/16 4:15 PM Project Estimation: Myths, Taboos, and Inconvenient Truths Presented by: Robert Merrill University of Wisconsin-Madison Brought to you by: 350 Corporate Way, Suite 400, Orange Park, FL 32073 888---268---8770 ·· 904---278---0524 - [email protected] - http://www.techwell.com/

Project Estimation: Myths, Taboos, and Inconvenient Truths

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BW10Session6/8/164:15PM

ProjectEstimation:Myths,Taboos,andInconvenientTruths

Presentedby:

RobertMerrill

UniversityofWisconsin-Madison

Broughttoyouby:

350CorporateWay,Suite400,OrangePark,FL32073888---268---8770··[email protected]://www.techwell.com/

RobertMerrillUniversityofWisconsin-MadisonAsahurricanescientistinthe1980s,RobertMerrillknewestimationwasaboutforecastingandresponse.(Controlnevercrossedhismind.)Asascientificapplicationsprogrammerinthe1990s,Roberthonedhisestimationskillsinself-defenseagainstprojectmanagement.In2003,askedtocreateafailure-proofapplicationcontractinganddeliveryprocess,Robertfinallyfacedtherealityoftheestimationproblemandgraspedthebusinessessenceofprojectsuccess.Histarget-budget,variable-scopeapproachhelpedturnaroundhisprojectstoprofitability,referenceability,andsustainability.Hethenspentsevenyearsasanindependentconsultant,refiningtheprinciplesandmakingthemclearandconvincing.RobertpresentlyservestheUniversityofWisconsin-Madisonasaprojectintakespecialistandbusinessanalyst.

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Warm-upIntroduce yourself to your neighbor.Answer, “How do you produce, consume, or experience project or release-level estimates?”Describe your feelings about the topic of estimation.

Robert T. MerrillSenior Business AnalystDivision of Information Technology (DoIT)University of Wisconsin–Madison

Project EstimationMyths, Taboos, and Inconvenient Truths

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The Estimation Problem1. Estimates are ranges2. Ranges are larger than we think3. Ranges cost more to reduce than we feel they should, or can afford4. Ranges are too big to live with

What I want you to hear1. Estimation Problem drives many others2. Thinking is impaired

– Myths (blindness)– Taboos (shame)– Inconvenient Truths (avoidance)

3. A respectful solution

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We’re Bad Estimators

BaseballWhat’s “Good?”

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McConnell’s Cone

Reading the Cone1000 h

4x1000=4000 h0.25x1000=250 h

“Initial Concept” estimateExpect 16x range

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Behind the ConeScatter2x

½x

Cone Caveats1. Not your shop, not your data2. YMMV, and probably worse3. Doesn’t converge if you’re dysfunctional

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For every complex problemthere is an answer that isclear, simple, and wrong.—H. L. Mencken

Clear, Simple, & Wrong

The solution is properdefinition and planning

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Cone Ranges and Costs“Up Front”doesn’t equal “Instant and Free”

4x 2x

% of Project Cost Estimate Range, low to highBuffer, % of 50/50 estimate

2-4% ~4x 100%4-6% ~3x 70%

8-12% ~2x 40%20-25% ~1.5x 20%

Cost of Accurate Estimates

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Sources of Uncertainty

The Estimation ProblemWe can’t afford estimatesthat are accurate enoughto make estimation errorsa non-significant risk.Inconvenient Truth

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That’s what eveningsand weekends are for

Crunch ModeStanford

Stanford Univ. Dept. of Computer Science

“Thus, while employers do notallow their employees to come towork drunk, they oftenperpetuate working conditionslike crunch mode that yield thesame net effect.”

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Doom Loop: Behind

PRESSURE!PRESSURE!

Doom Loop: PressureDoom Loop: Pressure

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PRESSURE!PRESSURE!

Doom Loop: PressureDoom Loop: Mistakes

PRESSURE!PRESSURE!MoreTo Do!

MoreTo Do!MoreTo Do!MoreTo Do!

Doom Loop: PressureDoom Loop: More Work!

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Aggressive plansstill yieldthe best possible results

Gyroscope

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Cost

Quality

The software most of us are making

AvionicsNuke ControlsRadiotherapy

Cost-Quality curve

DoomLoopZone

Schedule

Cost ParkinsonZone

Cost-Schedule Curve

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I don’t think it means…

Crunch modeis really about provingwe tried really hard

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I just need a rough estimate.I won’t hold you to it.—Pinocchio

Management has a legitimate need for estimatesInconvenient Truth

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Requested datesaren’t estimates

Estimateshave probabilitiesand/or ranges

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Estimates aren’t commitments

What they ask forRange and probabilitiesaround a requestWhat you agreeto try to make happen

Vocabulary• Request / Demand

• Estimate

• Commitment

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Is it an estimate?• Project effort estimate is 3500 h• Project effort has a 50% chance of being 3500 hours or less• Project duration is estimatedat 6-8 months• The 50%-90% chance project duration is 6-8 months

YesOK, but…

Yes

Avoiding Games & Drama• Vocabulary• Awareness (“Thomsett estimation games”)

https://www.cutter.com/article/double-dummy-spit-and-other-estimating-games-405811• Hard Soft Skills Dialogue Boundaries Negotiation

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Padding is unprofessional

Commitments?

Estimates?

Trains always on time. Is this happening?

Isn’t thismore common?

Parkinson’s Law?

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Can we live with it?

2x~50%

What if wepadded the scope?

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In the beginning…In the beginning was the ship date, and the specification was without form, and void…--Inception 1:1

Scope: A Big Pile of Rocks

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Which do you understand?

Where uncertainty really isProject uncertaintyreally wants to bein the scope.

Inconvenient Truth

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Cutting scopemeans we’ve failed

Project Success RedefinedProject Successis delivering results that areworth more than they costwithout running out oftime and money.

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We do this.We always scope projects to fit.That’s what you heard,not what I mean

I can’t estimate

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No, you can’t, can you?

The hardest thingis giving upthe illusion of controlat the beginning.—”Uncle Bob” Martin

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This sounds like a cop-out!• BAs, stakeholder analysis is good• So is data and function modeling• PMs, planning is goodBut the estimation problem remains!Diminishing returns, folks!

Variable scope? How?• A dice game• Burn-up charts

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Estimation Risk GameWork in pairs or threes~15 minutesFollow the instructions first, then experimentThen we’ll discuss

The Scope-Schedule Swap

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The Scope-Schedule Swap+ +++ ?

The Scope-Schedule Swap

+

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The Scope-Schedule Swap

The Scope-Schedule Swap

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The Scope-Schedule Swap

The Scope-Schedule Swap

+

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1. Crazy big ranges2. Don’t squeeze the goose3. Up-front work can’t save you4. Pad the scope5. Do Phase Two right away6. Included for free with agile

[email protected]