September 27, 2011 - Successful project completion means that committed deliverables and quality objectives are achieved on time and on budget. In a tight economy and highly competitive marketplace, delays and cost overruns can be disastrous. Successful project execution must be optimized at every phase of development—especially planning and estimation.
Many organizations use mature software development and project management processes, yet they may still create initial project estimates from less than optimal data and assumptions. To improve estimates, make sure the scope of work describes all work required to successfully complete the project. Don't cut corners. If you need to, get outside help to create a robust, accurate scope of work.
It is not enough to estimate project budget, staffing and schedule based on general experience, or worse, what you think might get approved. Detailed past project metrics, coupled with up-to-date project assumptions, are the best option for management justification and project success. Employ multiple estimation methods to provide additional confidence and increase the probability of meeting objectives.
If you don't have that data, there are two options: 1.) work with an outside provider to create a basis of estimate (BoE) that includes detailed, proven metrics; or, 2.) continue as usual, and hope you meet objectives.
Either way, clearly define key metrics that are important to your organization and start collecting the necessary data immediately. This way you can improve project estimate accuracy in the future. Capture time management data, including all activity definitions and duration for projects. Also, track and analyze budget estimates, actuals and cost controls. These steps can help take the guess work out of your next software project plan.