Fibonacci Agile Estimation Technique - GoRetro (2024)

Estimation is important for planning a Sprint or release. In traditional waterfall models, estimates are often made using the bottom-up approach, where developers provide detailed estimates for their tasks.

However, in Agile, the top-down approach is more common. This means that the Product Owner provides a high-level estimate of the effort required for the entire project, and the team then breaks this down into smaller chunks.

In this article, we will shed some light on the Fibonacci Agile estimation technique. This is a popular way to estimate the effort required for a task in Agile, and it can be used for both small and large projects.

What is Fibonacci Agile Estimation?

Fibonacci estimation is a top-down technique that uses the Fibonacci sequence to estimate the effort required for a task.

The Fibonacci sequence is a series of numbers where each number is the sum of the two preceding numbers. This sequence starts with 0, 1, 1, 2, 3, 5, 8, 13, 21… As you can see, each number in the sequence is roughly 1.6 times bigger than the previous number.

In Fibonacci estimation, the numbers in the sequence are used to estimate the size of a task. For example, if a task is estimated as an 8, it means that it will take approximately 8 times as much effort to complete as a task that is estimated to be a 1.

The advantage of this technique is that it forces the estimator to think about the relative sizes of tasks. It also considers that larger tasks are usually more complex and therefore take longer to complete.

When Should Fibonacci Estimation Be Used?

Fibonacci estimation can be used for both small and large projects. However, it is most commonly used for larger projects with greater uncertainty about the required effort.

When an Agile team estimates the effort required for a task, they will often use a planning poker technique: each team member is given a deck of cards with the Fibonacci sequence on them, and they must choose the card that represents their estimate. The advantage of this technique is that it forces team members to discuss their estimates and reach a consensus.

Why Is It Used in Agile Estimation?

There are several reasons why the Fibonacci estimation is popular in Agile:

1. Firstly, Agile is a top-down approach, which means that it starts with a high-level estimate and then breaks it down into smaller pieces. This contrasts with the bottom-up approach used in traditional waterfall models, where developers provide detailed estimates for their tasks.

2. Secondly, it recognizes that larger tasks are usually more complex and therefore take longer to complete. This is important in Agile because teams often have to make trade-offs between different tasks to meet their deadlines.

3. Thirdly, it is easy to use and understand. This is especially important in Agile environments where there is often a lot of uncertainty about the effort required for a task.

4. Finally, it is flexible and can be used for both small and large projects.

Why Is the Modified Fibonacci Sequence Used When Estimating in Safe Agile?

SAFe or Scaled Agile Frameworks is an extension of the Agile framework designed for large enterprises.

The modified Fibonacci sequence used when estimating in SAFe Agile starts with 0, ½, 1, 2, 3, 5, 8, 13, 20, 40, 100… While the first few numbers are similar to the traditional Fibonacci sequence, the larger numbers are rounded up.

The modified Fibonacci sequence is often used when estimating in SAFe Agile because it considers that larger tasks are usually more complex and, therefore, difficult to estimate. This is important in SAFe Agile because large teams often have to make trade-offs between different tasks in order to meet their deadlines.

The advantage of using the modified Fibonacci sequence is that it is easy to use and understand. This is especially important in SAFe Agile environments, where there is often a lot of uncertainty about the effort required for a task.

Other Estimation Methods (Fibonacci Sequence Alternatives)

Several other estimation techniques can be used, such as the T-shirt sizing method, the ideal days method, and the story point estimation technique:

1. The T-shirt sizing method is where each task is assigned a size based on its complexity. For example, a small task might be considered an S, while an enormous task might be considered an XL.

2. The ideal days method is where you estimate the effort required for a task by considering how long it would take to complete if there were no interruptions or distractions.

3. The story point estimation technique is where you estimate the effort required for a task by considering the number of “story points” it would have. Story points are a measure of the complexity of a task and are often used in Agile estimation.

How to Use Fibonacci Estimation in Agile?

Teams can use several methods to estimate using the Fibonacci sequence:

1. The most common method is to use planning poker. Each team member is given a deck of cards bearing the Fibonacci sequence, and they must choose the card representing their estimate. The advantage of this technique is that it forces team members to discuss their estimates and reach a consensus.

Fibonacci Agile Estimation Technique - GoRetro (1)

2. Another method is a technique called point-wise estimation. This is where each team member assigns a point value to each task based on their estimate of the effort required. The advantage of this technique is that it is quick and easy to do.

3. Finally, you can also use a spreadsheet or any other software tool to help you estimate using the Fibonacci sequence. This is especially helpful if you have a large project with many tasks.

Final Thoughts

No matter which method you choose, it is important to remember that the Fibonacci sequence is only a guide. It is not an exact science, and there will always be some uncertainty when estimating using this technique.

Nevertheless, using the Fibonacci sequence correctly can be an effective way to estimate the effort required for a task.

FAQ:

1. How do you use Fibonacci for story points?

To use Fibonacci for story points, you need first to understand the concept of a story point. A story point is a measure of a task’s complexity. It is often used in Agile estimation because it allows team members to estimate the effort required for a task quickly.

Once you understand story points, you can estimate the effort required for a task using the Fibonacci sequence. The advantage of using this technique is that it is quick and easy to do.

2. Why are Jira story points considered Fibonacci?

Jira is a popular software tool often used in Agile project management and estimation. The Jira story points are considered Fibonacci because the sequence is a quick and easy way to estimate the effort required for a task. This leaves less room for estimation errors, especially for large, complex tasks.

Fibonacci Agile Estimation Technique - GoRetro (2024)

FAQs

Fibonacci Agile Estimation Technique - GoRetro? ›

In Fibonacci estimation, the numbers in the sequence are used to estimate the size of a task. For example, if a task is estimated as an 8, it means that it will take approximately 8 times as much effort to complete as a task that is estimated to be a 1.

What is the Fibonacci method in agile? ›

The Fibonacci scale is a series of exponentially increasing numbers used to estimate the effort required to complete a task or implement a user story. Agile teams discuss upcoming tasks and assign points to each one using the Fibonacci scale to prioritize tasks to be included in the next sprint.

What is Fibonacci sequence used for in Scrum? ›

Although you may see it commonly used, the Fibonacci sequence on a scrum team—or on any agile team, for that matter—is a completely optional way to describe the scope of work in terms of estimated numerical points. This series of numbers can help the scrum team "size" a product backlog item (PBI).

Why does Jira use the Fibonacci sequence? ›

To eliminate the vagueness from estimates, teams often use the Fibonacci sequence. In this sequence, the consecutive integers are the sum of the two preceding ones. And thus, you get 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, and so on. (You may modify this sequence and start as low as 0.5.)

What is the methodology of the Fibonacci sequence? ›

The sequence follows the rule that each number is equal to the sum of the preceding two numbers. The Fibonacci sequence begins with the following 14 integers: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233 ... Each number, starting with the third, adheres to the prescribed formula.

What is the Fibonacci technique? ›

Fibonacci projection is a technical analysis tool that uses the Fibonacci sequence to predict potential levels of support and resistance in the future price movement of an asset. The Fibonacci sequence is a series of numbers where each number is the sum of the two preceding numbers, starting with 0 and 1.

How many hours are 8 story points? ›

For example, if you have a task estimated at 8 story points, you can estimate that it will take approximately 32 hours to complete (8 story points * 4 hours per story point).

How to estimate effort in Agile? ›

Agile teams usually estimate effort using a metric called story points. Story points are an abstract value that takes into account the relative complexity and size of a task. Teams tend not to estimate based on person hours, but instead use Story points – a concept inherited from Extreme Programming (XP).

Which is the golden rule in Scrum? ›

Basic Scrum Rules

There are no Breaks Between Sprints. Every Sprint is the Same Length. The Intention of Every Sprint is “Potentially Shippable” Software. Every Sprint includes Sprint Planning.

How many hours is 3 story points in Jira? ›

Two story points, for example, equate to a work that will take 2-4 hours, whereas three story points go to issues that will take 4 to 8 hours, and so on. It's a hybrid technique to task estimations that should not be used in most cases.

Why is the modified Fibonacci sequence used when estimating in scaled agile? ›

The modified Fibonacci sequence is often used when estimating in SAFe Agile because it considers that larger tasks are usually more complex and, therefore, difficult to estimate. This is important in SAFe Agile because large teams often have to make trade-offs between different tasks in order to meet their deadlines.

How is Fibonacci used in agile? ›

Essentially, the Agile Fibonacci scale gives teams a more realistic way to approach estimates using story points. Story points are used to represent the size, complexity, and effort needed for completing or implementing a user story. Each story point is assigned a number from the Fibonacci scale.

What is the Fibonacci series used for in scrum? ›

The modified Fibonacci series is 0, 1, 2, 3, 5, 8, 13, 20, 40, 100 - a sequence that is used to estimate the relative size of User Stories in terms of Story Points.

What is a real life example of the Fibonacci sequence? ›

Fibonacci numbers and Fibonacci ratios are found frequently in nature. Some examples are the number of petals on flowers, the ratio of the whorls on a pine cone, and leaves on the stems of a flower.

What is an example of the Fibonacci method? ›

The Fibonacci sequence is a type series where each number is the sum of the two that precede it. It starts from 0 and 1 usually. The Fibonacci sequence is given by 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and so on. The numbers in the Fibonacci sequence are also called Fibonacci numbers.

What is the Fibonacci sequence used for? ›

The golden ratio of 1.618 is derived from the Fibonacci sequence. Many things in nature have dimensional properties that adhere to the golden ratio of 1.618. The Fibonacci sequence can be applied to finance by using four techniques including retracements, arcs, fans, and time zones.

What is the meaning of Fibonacci? ›

Fibonacci number

noun. : an integer in the infinite sequence 1, 1, 2, 3, 5, 8, 13, … of which the first two terms are 1 and 1 and each succeeding term is the sum of the two immediately preceding.

What is the modified Fibonacci scaled agile? ›

SAFe or Scaled Agile Frameworks is an extension of the Agile framework designed for large enterprises. The modified Fibonacci sequence used when estimating in SAFe Agile starts with 0, ½, 1, 2, 3, 5, 8, 13, 20, 40, 100

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