Level-of-Effort Estimations

January 18, 2025 - 3 minutes read - 636 words

Engineering Team Planning Process - LOE Estimations

This document outlines the process followed by the engineering team for planning and estimating work for the next quarter of the fiscal year.

Input

Organizational OKRs: The planning process is initiated by a thorough understanding of the organization’s overall objectives and key results (OKRs).
Product Requirement Documents (PRDs): Detailed PRDs are utilized to translate high-level organizational OKRs into specific, actionable goals for the engineering team. Each PRD outlines the requirements for a particular feature or improvement.

Product Requirements Document	Team 1 LOE	Team 1 Commitment	Team 2 LOE	Team 2 Commitment	Other teams…
PRD 1 …	?	?	?	?	…
PRD 2 …	?	?	?	?	…
PRD 3 …	?	?	?	?	…

Output

Based on the detailed scoping and LOE estimations, the work is translated into a realistic number of sprints. Each sprint typically spans two weeks, with the team focusing on delivering a specific set of features or functionalities within each sprint.

Product Requirements Document	Team 1 LOE	Team 1 Commitment	Team 2 LOE	Team 2 Commitment	Other teams…
PRD 1 …	4	Yes	8	Yes	…
PRD 2 …	5	No	4	No	…
PRD 3 …	7	Yes	1	No	…

Process

Objective Analysis: The first step involves a detailed analysis of the “objective” component of each OKR. This provides the overarching direction and guides subsequent planning activities.
Key Result Definition: Based on the analyzed objective, specific, measurable, achievable, relevant, and time-bound (SMART) Key Results are defined. These KRs serve as concrete milestones for measuring progress towards the overall objective.
Assumption & Dependency Identification: Potential assumptions and dependencies are carefully identified and documented. These include factors such as:
- Availability of resources (e.g., data, infrastructure budget)
- Completion of work by other teams
- Successful integration with third-party systems
Work Scoping: The work required from the engineering team is meticulously scoped. This involves breaking down projects into smaller, more manageable tasks and identifying the necessary resources and timelines.
Internal Review: Two rounds of internal review are conducted:
- Individual Review: The Engineering Manager conducts an initial review of KRs, assumptions, scope, and LOE estimations.
- Team Lead Review: The Engineering Manager then collaborates with team leads to double-check the accuracy and completeness of KRs, assumptions, scope, and LOE estimations.

A worksheet for LOE estimations:

PRD	Org OKR	TPM is needed	QA is needed	LOE	Commitment	Scope
PRD 1	OKR 1	Yes	Yes	4	Commit	Key Results:
						1. Key Result 1
						2. Key Result 2
						Scope:
						1. Todo X
						2. Todo Y
						Assumptions:
						1. Prereq. 1
						2. Prereq. 2
						Dependencies:
						1. Team 1
						2. Team 2
PRD 2	OKR 1	No	No	5	No	Key Results:
						1. Key Result 1
						2. Key Result 2
						Scope:
						1. Todo X
						2. Todo Y
						Assumptions:
						1. Prereq. 1
						2. Prereq. 2
						Dependencies:
						1. Team 1
						2. Team 2
PRD 3	OKR 2	No	Yes	7	Commit	Key Results:
						1. Key Result 1
						2. Key Result 2
						Scope:
						1. Todo X
						2. Todo Y
						Assumptions:
						1. Prereq. 1
						2. Prereq. 2
						Dependencies:
						1. Team 1
						2. Team 2

Commit/No-Commit Meeting

A critical “commit/no-commit” meeting is held with the Product Team Managers (TPMs) to:

Review Team Capacity: Assess available team bandwidth, considering factors like planned vacations, potential roadblocks, and the complexity of proposed work.
Prioritize OKRs: Prioritize OKRs based on team capacity, LOE estimates, and identified risks.
Align Expectations: Ensure alignment between the team’s commitments and the overall business objectives.

Conclusion

The estimation and planning process is an iterative one. Continuous communication, regular check-ins, and a proactive approach to addressing challenges are crucial for successful execution. By adhering to this structured process, the engineering team can effectively align with company goals, deliver high-quality work, and achieve desired outcomes.