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Agile Methodology: Points, velocity, Complexity, & effort estimation

In Agile Methodology, points and velocity have been seen as crucial elements for the success of many teams and projects. A few years back one of my teams was working on a new mobile application for a popular restaurant chain. The project was a complex one, as it required integration with the restaurant’s existing systems, as well as the ability to place orders and make payments through the app. As the team began to work on the project, they quickly realized that estimating the complexity and effort required to complete the various tasks and stories was becoming increasingly difficult. The team was struggling to come up with accurate estimates, and as a result, they were falling behind schedule.

In an effort to get back on track, I decided to understand along with the project manager assigned to the team on how exactly they are estimating stories. And to my surprise I learned that the version of points and velocity understanding is way to confusing for them. We began by assigning points to each task and story based on their relative complexity and effort required, then used velocity to estimate the number of points the team believed they could handle in a given sprint. Trust me, it might sound simple but it was nothing near to simple. In this article I will try to break some of the learnings that helped my team to understand things well.

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