Agile Story Pointing is a relative estimation technique that Agile teams use to measure the effort required to complete a user story. Story points are not like traditional time-based estimation. It considers multiple factors such as effort, complexity, unknowns, and dependencies. This ensures a more relative and wholistic estimation process that helps teams plan their sprints effectively.
What are Agile Story Points?
Story points are a unit less measuring technique to describe the overall size of a user story.
They use the Modified Fibonacci sequence - 1, 2, 3, 5, 8, 13, etc., which allows teams to distinguish between small, medium, and large tasks.
Notes:
- The actual values assigned are not important; what matters is the relative comparison.
- A story assigned 3 points should take about three times the effort of a 1-point story.
- Organizations might suggest 1 SP ≈ 1 Day as per SAFe, but this will vary by team.
The "Good Enough" Estimation Mindset
Story pointing is not about getting perfect estimates, but it's about providing directional insights. Some key takeaways:
Forecasting over precision – The objective is to enable better planning, not exact predictions.
Assumptions discussion – Teams should discuss their estimates openly.
Shared understanding – All members should have a common understanding of the estimation criteria.
Avoid over-engineering – Story points should make the estimation process simple, not complex.
A well-known quote by Ron Jeffries, the man who created story points "I may have invented story points, and if I did, I'm sorry now. If they're not providing great value, drop them. But if you love them, carry on!"
Why Use Story Points?
Some of the key advantages of story pointing are:
Quick and easy to implement.
Encourages collaboration among team members.
Accounts for overall effort, including unknowns.
Team-specific and flexible, as each team sets its own reference points.
Less biased and uncertain compared to absolute estimation
More precise for long-term planning. Examples would be releases and launches.
How to Estimate in Story Points
We use planning poker tool to estimate in story points. Here is a free online planing poker tool if you are looking for one - Pointing Poker. Below are the high level steps on how to story points will be estimated.
1. The Product Manager elaborates the story to the team.
2. The team asks clarifying questions about the requirements.
3. Each member uses planning poker cards or a digital tool for estimation.
4. Scrum Master reveals the estimates and opens discussion.
5. Consensus is achieved, or a new round of estimation is made.
Notes:
Use reference stories for consistency. Reference stories serve as a benchmark or a guiding example that can help teams maintain a shared understanding.
Revisit the story points if needed during sprint planning or whenever new information is available.
Whats is Sprint Variance?
Sprint variance is the gap between what was promised and what was delivered in terms of story points. In order to decrease variance, teams should
Calculate the team capacity before planning
Commit to the pealistic number of story points within your capacity.
Apply previous sprint velocity as a benchmark.
Increase number of refinement meetings if needed to ensure a healthy backlog
Avoid new stories in middle of a sprint unless of utmost importance.
Account for uncertainty when planning for work that can't be assured.
Avert last-minute testing/UAT rush.
Conclusion
Agile Story Pointing is a strong tool for estimating work in a structured yet flexible manner. A relative estimation approach enables teams to enhance forecasting, facilitate collaboration, and optimize sprint execution. Still, it's always important to maintain a pragmatic mindset—story points should guide you, not limit you and they are still estimates and not precise calculations.
By following best practices and refining the estimation techniques with the passage of time, an Agile team can maximize efficiency and deliver high-value products with more confidence.
What's your take on story pointing? Have you found it useful, or do you prefer alternative estimation methods? Share your thoughts in the comments below!
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