Let's talk about a familiar scenario:

You are asked to estimate a new project without having the time to dig into every detail. Your estimate feels like a guess, and you get frustrated being held to a random number.

So why do we even use software estimates? And how can you provide better estimates without having every detail beforehand?

TL;DR Estimates are essential to help businesses run efficiently. Break down the project into smaller, manageable tasks for more accurate estimates. Always account for the unexpected by adding buffer time to your estimates. Communicate early with your project manager if you realize an estimate might be off.

Why Estimates Are Important

Estimation can feel like a fool's errand. You are expected to predict how long a project will take before you even get a chance to dive into the code.

So, why does just about every company rely on software estimation?

The short answer is estimates are required to help the business run efficiently.

Estimates help forecast expenses/revenue, plan for marketing efforts, and inform future planning and decision-making.

Without estimates, the company risks mismanaging resources, which means no money to grow. You can imagine how this impacts your next raise or promotion.

Now that we know why estimates are critical for organizations, let's learn how to create better estimates.

Tips for Better Estimates

Creating accurate estimates is crucial in ensuring that projects are completed on time and within budget. However, coming up with reliable and realistic estimates can be challenging, especially when you don't have all the necessary information.

Here are some tips you can use to create better estimates:

1. Break It Down: Divide the project into smaller, manageable tasks for more accurate estimates.
2. Use Historical Data: Leverage past projects as a guide to understand how long tasks typically take.
3. Include Buffer Time: Always account for the unexpected by adding buffer time to your estimates.
4. Regular Reviews: Estimations should be dynamic. Regularly review and adjust them as the project progresses.

Dealing with Off-Target Estimates

When you realize an estimate is off, you must take action. The worst thing you can do is say nothing. Here are some practical steps to take to get back on track:

1. Communicate Early: When you realize the estimate might be off, communicate with your project manager. Early alerts can help in managing expectations and reevaluating priorities.
2. Document and Analyze: Take note of where and why the estimate deviated. Understanding the root cause is crucial for future estimates and immediate adjustments.
3. Reassess and Update: Work with your team to reassess the remaining work. Update your estimates based on the new information and learnings.
4. Develop a Mitigation Plan: Create a plan to address the impact of the revised timeline. This might involve reallocating resources, adjusting project scopes, or resetting client expectations.
5. Provide Regular Check-ins: Increase the frequency of your check-ins with the team and stakeholders to monitor progress and promptly make any necessary course corrections.

Remember that estimates are more than a "necessary evil." Estimates are critical for companies to plan projects and manage marketing efforts.

You can help the entire organization by taking the time and effort to provide high-quality estimates and communicate if the estimates are off.

I want to hear about how you handle estimates within your team. What challenges do you run into with your estimates, and how do you handle communication when your estimates are off?

I respond to every email, and I am here to help you improve your professional skills.

Regards,

David Ziemann Founder of MoreThanCoders.com​ ​david@morethancoders.com​