1 Define the purpose and scope

Before you start estimating, you need to have a clear and shared understanding of the purpose and scope of the project. This means defining the objectives, deliverables, assumptions, constraints, and risks of the project with your stakeholders. You can use tools such as a project charter, a scope statement, or a work breakdown structure (WBS) to document and communicate the scope. By doing this, you can align the expectations and requirements of your stakeholders, and avoid scope creep or changes later on.

2 Identify the estimation methods and tools

There are different methods and tools for estimating different aspects of a project, such as costs, resources, duration, quality, and risks. You need to select the most appropriate and reliable ones for your project, based on the available data, the level of detail, and the accuracy required. You also need to involve your stakeholders in choosing and applying the estimation methods and tools, as they may have valuable insights, expertise, or feedback to offer. You can use tools such as historical data, benchmarking, parametric models, bottom-up or top-down approaches, or contingency analysis to estimate your project.

3 Validate and refine the estimates

Once you have generated the initial estimates, you need to validate and refine them with your stakeholders. This means checking the accuracy, completeness, and consistency of the estimates, and making adjustments if necessary. You can use tools such as sensitivity analysis, risk assessment, or peer review to validate and refine your estimates. You also need to document and communicate the assumptions, sources, and methods behind your estimates, and explain any changes or deviations from the baseline. By doing this, you can increase the transparency and credibility of your estimates, and gain the trust and approval of your stakeholders.

4 Monitor and update the estimates

Project estimation is not a one-time activity. It is an ongoing process that needs to be monitored and updated throughout the project lifecycle. This means tracking the actual performance and progress of the project, and comparing it with the estimated values. You also need to involve your stakeholders in monitoring and updating the estimates, as they may have new information, feedback, or requests that affect the project. You can use tools such as earned value analysis, variance analysis, or change management to monitor and update your estimates. By doing this, you can identify and address any issues or opportunities that arise, and keep your stakeholders informed and engaged in your project.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?