Why software projects take longer than you think: a statistical model (2019)
> A reasonable model for the “blowup factor” (actual time divided by estimated time) would be something like a log-normal distribution.Interestingly, we did extensive time tracking on a multi-year in-house software project and collected data comparing the estimated completion time of tickets with their actual time.The software department was under a lot of pressure to improve their forecasting, and were somewhat despairing that their estimates were off by a factor of about 1.6 on average, and sometimes a factor of 10 or more. This persisted in the face of all attempts to improve calibration. Managers were worrying that developers had no idea how long a task would take and estimation was futile.When we plotted the data, in all cases, the actual time was very accurately fit by a lognormal whose scale parameter was precisely the predicted completion time. That is, whether the tickets were predicted to take 1 hour, 3 hours, 13 hours, or whatever, the histogram of their actual completion times followed the exact same shape but with a corresponding scale change on the x axis.This told me that the developers actually have a really good understanding of the class of problem they're dealing with when they start a task. But sometimes tasks have multiplicative factors that make them take longer than you expect. Sometimes the bug turns out to be two bugs, and so on. Based on this analysis, I urged them not to consider it a prediction failure when a ticket takes 10 times longer than expected; that's just a property of the lognormal distribution, and that estimate likely did a good job of reflecting all available information at the time they made it.Instead of changing the estimates, I suggested that we pick a safety factor for external facing commitments that reflects this distribution. Padding the estimate by 1.6 factor gives the mean, but if you want to make a commitment you can take to a customer, you can just extend the lognormal up to 95% confidence or 99% confidence or however trustworthy your promised commitment needs to be. Of course, a 99% confidence interval on a lognormal is a pretty big factor. But if that's better than running late, it is what it is.Another interesting thing is that you'd expect, by the central limit theorem, that sufficiently large tasks would eventually become normally distributed rather than lognormal, because they're composed of a large number of subtasks. But it turns out that lognormals are a pretty pathological case; sums of n lognormals can continue to look nearly lognormal until n becomes really, really large.