12 Tips for Accurate Project Estimating

>sometimes even more difficult to resolve.
Projects typically involve many dynamic aspects, yet-- Our often-idealistic views of our own capabilities.
they're often constrained by finite conditions. TheseWe frequently believe that we can achieve much
contradictory forces make it very difficult tomore than is possible in the available time.
determine with pinpoint accuracy the time and effort-- A strong human desire to please other people by
required. By using a set of proactive estimatingtelling them what they want to hear. (After all, who
techniques to scope, plan, and constrain your projectwants to be the bearer of bad news?)
conditions, you can dramatically improve your12 Tips for Increasing Estimating Accuracy
estimating practices, reduce and mitigate risks, andTo remedy these shortcomings, below are 12 ideas
increase your project success rate.for boosting the accuracy of your estimates:
Do you excel at predicting the time, funding, and1. Maintain an ongoing "actual hours" database of the
resources your projects will require?recorded time spent on each aspect of your
Whether your company aims to develop a newprojects. Use the data to help estimate future
product or service, update an existing system, orprojects and identify the historically accurate buffer
launch a new Web site, these undertakings willtime needed to realistically perform the work.
require people, schedules, funding, resources,2. Create and use planning documents, such as
requirements, testing, revising, implementation,specifications and project plans.
evaluation, and many other elements.3. Perform a detailed task analysis of the work to be
You may have seen this phenomenon already:performed.
projects are risk magnets. Why is that?4. Use a "complexity factor" as a multiplier to
The possible reasons include the fact that projectsdetermine whether a pending project is more or less
typically involve many dynamic aspects, yet they'recomplex than a previous one.
often constrained by finite conditions. These opposing5. Use more than one method to arrive at an
forces make it very challenging to identify with greatestimate, and look for a midpoint among all of them.
accuracy the time and effort required, and can result6. Identify a set of caveats, constraints, and
in many budget and schedule "collisions" during the lifeassumptions to accompany your calculations, which
of the project.would bound the conditions under which your
When my clients or colleagues invariably ask, "Howestimates would be meaningful. (Anything that occurs
long do you think this effort might take?" I usuallyoutside of those constraints would be considered out
experience a knee-jerk reaction. Instinctively, a partof scope.)
of my brain that once excelled at solving math7. If the proposed budget or schedule seems
problems on timed quizzes goes into overdrive. "Iinadequate to do the work, propose adjusting
know the answer!" it screams.upward or downward one or more of the four
Yet, unless that project or task is something I'veproject scoping criteria: Cost, schedule, quality, and
performed many times before -- under very similarfeatures.
conditions each time, and with good records of my8. Consider simpler or more efficient ways to
actual hours spent -- providing an accurate estimateorganize and perform the work.
can be quite elusive. As I strive to imagine all of the9. Plan and estimate the project rollout from the very
stages and steps of a process, as well as fathom thebeginning so that the rollout won't become a chaotic
unknown variables or things that could go awry, it'sscramble at the end. For instance, you could propose
no wonder that I hardly ever guess 100% correctly,using a minimally disruptive approach, such as a pilot
particularly for new endeavors.program or a phased implementation.
Estimating Techniques Can Help Manage Risks10. In really nebulous situations, consider a
Did you know that estimating is an invaluable tool forphase-based approach, where the first phase focuses
anticipating and managing these project uncertainties?primarily on requirements gathering and estimating.
When we can identify our cost and schedule11. Develop contingency plans by prioritizing the
requirements with relative precision, it reduces thedeliverables right from the start into "must-have" and
risk of running out of time, resources, and budget"nice-to-have" categories.
during a project.12. Refer to your lessons-learned database for "20:20
Yet with all of the emphasis we place on creatingforesight" on new projects, and incorporate your
accurate estimates and bids, we still seem to havebest practices into future estimates.
difficulty developing realistic predictions of our timeIn conclusion, by using a set of proactive estimating
and effort. If we look carefully at the evidence, Itechniques to scope, plan, and constrain your project
believe we'll find three basic, underlying clues to theconditions, you can dramatically improve your
reasons for our challenges with estimating:estimating practices, reduce and mitigate risks, and
-- The presence of hidden or unknown variables thatgreatly increase your project success rate!
are difficult or impossible to anticipate, and