Small batch delivery & big batch finance - How to speak the language of forecasting
Understanding the complexity in estimating budget forecasts, and how incremental finance can enable true organizational agility.
Feb 09, 2017
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6 min read
4.25
(4)
Estimation
Forecasting
Estimating and Forecasting
Iterative Allocation
Summary
This article weighs the aspect of forecasting and budgeting on both a large and long-range project, and a small-range project broken down into smaller and manageable pieces. It dictates that large and long-range projects are complex and more challenging to estimate their budget or the likelihood of delivering value. Learn about uncertainty and the essence of breaking large projects into small and deliverable pieces in this article that help companies achieve agility and respond quickly to change.
Takeaways
- Breaking down long-range projects into smaller delivarable and valuable pieces can help make better estimates and funding decisons.
- The cone of uncertainty states that when you are close to done, estimates vary less and vary much more when you are further away from done.
- The larger a software project is, the more complex it is and difficult to estimate its budget and output.