Your Appetite Trumps Your Estimate
Yesterday we talked about some of the downsides of estimates. If we are going to avoid them, how will we plan and hit a deadline. There’s a simple, effective solution for that: appetite.
An “appetite” is simply the amount of time and money you would be happy spending to get to an outcome.
This is a three step process:
- Pick a cost (time & money) and ask if you would be happy to have the problem solved at that cost.
- Repeat #1 until you find the outer edge of comfort. This is your maximum appetite.
- Consider how you might be able to solve the problem within that appetite. This is the proposed scope.
Note, #3 isn’t “promise a timeline and specific implementation”. It is most likely that you don’t know what to make since you haven’t worked the problem yet! What is important is that you have an idea for the approach to take.
As you progress through the project, you will want to constantly evaluate how the work is moving forward. If you project is at risk of exceeding the appetite you will need to cancel the project or reduce it’s complexity.
Remember, a failed project isn’t good, but the best result for a project that will fail might be to cancel it early.