Master Agile Estimates with Story Points

Many people find estimating work in Agile scenarios to be a challenging task, especially those without technical or engineering backgrounds. However, with a clear understanding of Agile estimation concepts, anyone can contribute to the estimation process. In this article, we will demystify the process of Agile estimation and focus on one of the most widely used techniques – story point estimation. By using story points, teams can effectively estimate the complexity of tasks and plan their work more efficiently.

What is a Person Hour?

Before we delve into story point estimation, let’s first explore the concept of a “person hour”. In Agile scenarios, a person hour is defined as the amount of work that can be completed in one hour of uninterrupted effort. It serves as a unit of measurement for estimating task completion time. For example, if a task requires 2 hours of effort, it would equate to 2 person hours. However, there are certain limitations and disadvantages to using person hours for estimation.

Firstly, some tasks, especially those involving extensive research, can be difficult to estimate accurately using person hours. Research-oriented tasks may require more time than initially anticipated. Secondly, team members might underestimate the time taken to complete a task due to unforeseen hurdles or added complexities. Lastly, project managers may overlook the lack of experience in certain team members and allocate them inadequate time to complete a task. These disadvantages highlight the limitations of using person hours, especially in scenarios where tasks require new or unfamiliar skills.

Introducing Story Points

To address the inaccuracies and limitations of person hour estimation, Agile teams often rely on story points. Story points represent the complexity of a task rather than the amount of time it takes to complete. They provide a relative measure of effort required for each task, allowing teams to compare and prioritize user stories effectively.

Story points are typically estimated using the Fibonacci series (0, 0.5, 1, 2, 3, 5, 8, 13) or T-shirt sizes (small, medium, large, extra-large, etc.). For example, a baseline story is established by collectively choosing a user story that requires the least effort. This story is labeled with an effort equal to one story point or the smallest unit of measurement used. Subsequent user stories are then estimated relative to the baseline story’s complexity.

Advantages of Story Point Estimation

Story point estimation offers several advantages over person hour estimation. Firstly, it focuses on complexity, allowing teams with varying skill levels to provide a unanimous estimate based on relative effort. This reduces the dependence on individual experience and ensures a fair estimation process. Secondly, story points provide a consistent measure of the project’s size or relative complexity, making it easier to track and plan work. With story points, teams can establish their velocity, which indicates how fast they can complete tasks within a given time frame.

Understanding Velocity

Velocity is a key metric in Agile project management that represents the speed at which a team can complete tasks. It is measured in story points and provides valuable insights into the team’s productivity. By tracking velocity over time, teams can identify their average capacity to process story points within a sprint or specific time period.

Velocity can also help identify inefficiencies or flaws in the team’s estimation process. If velocity decreases over time, it may indicate a need for process improvement or reevaluation of the estimation approach. On the other hand, increasing velocity suggests that the team is becoming more efficient in delivering work.


In summary, Agile estimation plays a crucial role in effective project planning and resource allocation. While person hours have their limitations, story point estimation offers a more flexible and accurate approach. By focusing on complexity rather than time, teams can better prioritize and estimate tasks. Additionally, tracking velocity allows teams to visualize their progress and make informed decisions for future sprints. By incorporating story points and velocity tracking into Agile practices, teams can improve their estimation accuracy and achieve greater efficiency in project delivery.

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