The cost of estimation
I went to a SeaSPIN meeting this last Tuesday where Jim Benson gave a talk called “No Innovation without Information”. It was a great talk and primarily focused on Kanban related topics — however we briefly touched on the subject of Estimation. We do estimation at my company and it made me wonder just how expensive it is to estimate our work, especially if we end up not doing a significant amount of the work we estimate. The next day I took a picture of our Planning Board and reviewed our Jira queue to find all of the User Stories the team has estimated but not taken in, AND that were likely stale. Using a little bit of Cost Accounting I estimated the cost at roughly $6,000. Now that might not seem like a lot of money — but for a small company like ours that represents enough money (time == money) to build out a new feature on our platform.