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Understanding Story Sizing with Fibonacci Sequence

What is the Fibonacci Sequence?

The Fibonacci sequence is a series of numbers where each number is the sum of the two preceding ones: 0, 1, 1, 2, 3, 5, 8, 13, 21, and so on. In Agile story sizing, these numbers are used as points to represent the effort or complexity of tasks or user stories.

Applying Fibonacci Sequence to Story Sizing

Agile teams assign story points using the Fibonacci sequence to reflect the relative effort, complexity, or uncertainty of completing a user story or task. For instance:

  • A straightforward or less complex task might be estimated as 1, 2, or 3 story points.
  • A moderately complex task might be estimated as 5 or 8 story points.
  • A highly complex or uncertain task might be estimated as 13, 21, or more story points.

When Will It Be Done?: Lean-Agile Forecasting to Answer Your Customers’ Most Important Question

  • Consider this book as a great resource for learning more about estimating and forecasting in lean agile.
Lean-Agile Forecasting to Answer Your Customer's Most Important Question

Benefits of Using Fibonacci Sequence

  • Relative Estimation: Using Fibonacci sequence allows for relative estimation rather than absolute time-based estimates. It focuses on comparing the complexity of tasks relative to each other rather than assigning specific hours or days.
  • Non-linear Scale: The sequence’s non-linear progression accounts for the uncertainty and increasing difficulty in estimating larger or more complex tasks. This avoids over-precision in estimation and encourages broader categorization of complexity.
  • Ease of Comparison: With fewer options, the Fibonacci sequence simplifies comparison between tasks, making it easier for the team to reach a consensus on the complexity of each story.

Example of Story Sizing with Fibonacci Sequence

Let’s consider a software development project where the team needs to estimate the complexity of implementing different features:

  • Setting up basic user authentication might be estimated as 2 story points.
  • Developing a new feature with moderate complexity could be estimated as 5 story points.
  • Integrating a complex third-party API might be estimated as 13 story points due to high uncertainty and complexity.

By using the Fibonacci sequence, the team can assign story points that represent a relative understanding of effort, aiding in planning and prioritization during Sprint Planning.

Conclusion

Story sizing using the Fibonacci sequence provides Agile teams with a flexible and comparative approach to estimate the complexity of tasks. It encourages collaboration, fosters better understanding among team members, and facilitates effective planning and prioritization in Agile projects.

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