Archive for May 2013

The NoEstimates Hashtag

In Twitter, we use the convention of “hashtags” to connect a tweet with a theme or topic so that it is easy (or at least a bit easier) to search and find tweets for topics we want to follow.

Several people have blamed me for coining the “#NoEstimates” hashtag.  It might be true – I’m not sure.  It is possible that I was the first to use this hashtag for Software Development – a search of Twitter history on it shows that, as far as I can tell.

[UPDATE: I found the following post from Aslak Hellesøy – @aslak_hellesoy dated Feb 10, 2010 that used this hashtag

@obie at #speakerconf: “Velocity is important for budgeting”. Disagree. Measuring cycle time is a richer metric. #kanban #noestimates.]

SO… What is the Topic of the #NoEstimates Hashtag?

Here it is, as defined by me.  Others probably have their own idea:

#NoEstimates is a hashtag for the topic of exploring alternatives to estimates [of time, effort, cost] for making decisions in software development.  That is, ways to make decisions with “No Estimates”. 

I’ll probably modify this a bit over time – I put this together quickly as a starting point.

Also, A Word About Estimates

Estimates are typically and pervasively used in the decision-making process throughout software development organizations and efforts – both in “phased/waterfall” and “Agile” methodologies.  They are ubiquitous – it is rare to find a project/organization/effort where it isn’t simply accepted that “we must have estimates – it is the only way”.

Additionally, for a long time I’ve been noticing that almost every training, book, conference session, article, or blog on “Agile” software development has a very heavy focus on estimating.  I’m fine with important things taking a lot of our attention – they are important, after all. Are estimates that important?

I’ve also noticed over the years that many organizations have a number of dysfunctions in how estimates are handled, and the overall decision making process that depends on estimates.  Have you noticed any dysfunctions?

So… I started doing “5 why sessions” or similar exercises at conferences and user groups, and other investigations into the reasons for this, and the dysfunctions that people have been experiencing.  I also started discussing alternative ways to manage software development efforts without using estimates. I’ve been working without estimates for years for many decisions that are typically “estimate-driven”  in software development management, and some people are interested in how to do this.

It’s important to ask ourselves questions such as: Do we really need estimates? Are they really that important?  Are there options? Are there other ways to do things? Are there BETTER ways to do thing?

If we are willing to simply play the “devil’s advocate”, and imagine (or at least temporarily pretend) that perhaps there are better ways to make decisions, it can lead to more open thinking and clarity as to why we “believe the things we believe”.  Why not question the things we hold so dearly?

There ya go!  Have Fun!

 

 

My Customers Need Estimates, What Do I do?

It seems a lot of people have an argument against the “No Estimates” idea that goes something like this:

“Our Customers Need Estimates*”

There are many variations on this, but they typically come down to the same thing: We need customers, customers need estimates, therefore, we do estimates. The following are a few generic examples of this idea:

  • No customer will agree to hire us to write custom software for them unless we give them an “estimate”.
  • The reality of business is that we must give estimates to our customers so we can get work.
  • We must be good at estimates because our competitors are giving estimates.
  • The customer want’s to know if we can do their work at a price they can afford
  • The customer needs to know if they can make a profit based on the amount their software will cost, so they need an estimate.

How Can I Get These Customers Without Estimates?

This is a very easy question to answer: You probably can’t get these customers without estimates.  They want estimates – it’s part of the way they think. You probably MUST DO ESTIMATES for these customers.  That is, you don’t tell these customers “We don’t do estimates” if you want to work with them.

If you have chosen to work with the sort of customer that requires an estimate (or price) then give them what they want: an estimate (or price).  Your main job is to figure out a way to be able to make money taking on work for this sort of customer.  I understand that. You understand that. What more do you need to know?

A few points you might want to consider:

  • Are you willing to give an estimate/price for free?
  • Who pays for the estimates for jobs you don’t get?
  • How much extra do you need to “pad” the work for the “unknows”? Why should your customer pay for that?
  • Are you going to give a range?: “It will cost you no less than this but no more than that”.  Will you guarantee that?
  • If it costs you more to make the software than you estimated, are you willing to take the loss? Why??? If not, how will you deal with that? Re-negotiate the contract?
  • How do you know enough about the work to be able to give a resonably accurate price/estimate?
  • If a competitor shows them a better way, will they ever come back to you again?
  • That’s just a start – I’m sure we can come up with a lot of other things to consider.

If you choose to work following the “we must do estimates” model you are in good company (or at least in very numerous company), as there seems to be many who feel this is a reasonable way (or the only way they’ve found, perhaps?) to do business.

The Agile Way

I recently heard Jeff Sutherland do a talk where he mentioned the “80/20” rule – that “80 percent of the value is in 20 percent of the features” of a software project.  He quoted someone (I don’t remember who) as having suggested “we should just fund the 20% and not do the rest”.  I agree.  I’ll take it a bit further: I believe that the rule is more like “95/5” – that is: 95% of the value is in about 5% of the features, and that the people paying for the project will quickly end the project once that 5% is in use. Perhaps our goal is to pay as little as we can to discover and create that 5%.  So… how to do that?

Some choose the Agile way.  In this model, we recognize that “requirements emerge”.  If we can get good at allowing the more important and useful requirements to naturally emerge it pays off very nicely.

What does this have to do with estimates?  If I have to tell you, then you probably should be reading someone else’s blog.  But here it is: A customer who needs to “know how much it will cost” before they will decide to hire you to do the project might not be the sort who is willing to let requirements emerge.   It’s just not their way of thinking.  You might be able to “change them”, but probably not.

Not All Customers Require an Estimate (or price)

What it comes down to is this: You get to choose who you do business with.  If you choose to serve customers who need an estimate/price, then do estimates/prices, and figure out how to make that work for you.  If you choose to serve customers who are willing to let requirements emerge, then get good at the Agile way, and go for those customers.  It’s your choice.

Some of my other posts on estimates and “no estimates”

NOTES:

* For the purpose of this article, the sort of estimates I am discussing are the estimates typically asked for on many software development projects where a project, a feature, or a function, or a bug fix (or where a list of features or functions) are described and people are asked to come up with an approximate cost in time, money, or effort to do the work that will be required to provide the feature(s)/function(s)/capability(ies)/bug fix(es) being requested.

Disclaimer: There are many situations where estimates can be meaningful and useful.  This article is about situations where I don’t think they are typically meaningful or useful, and only in the realm of software development.