Story Points vs. Hours: Which Should Your Team Use?
Posted on July 15, 2023 • 7 min read
Table of Contents
Introduction to Estimation Methods
Estimation is a cornerstone of agile development. It enables teams to plan effectively, set realistic expectations, and monitor progress. Two widely used estimation methods are story points and hours. But which one is right for your team?
In this blog post, we'll dive into both approaches, explore their pros and cons, and help you decide when to use each. Whether you're new to agile methodologies or looking to refine your team's estimation process, understanding these techniques will help you make more informed decisions.
What Are Story Points?
Story points are a method for estimating the relative effort needed to complete a user story. Rather than focusing on time, they account for the complexity, risk, and uncertainty of a task. Teams typically assign story points using a Fibonacci sequence (e.g., 1, 2, 3, 5, 8, 13) to reflect how uncertainty grows with larger tasks.
Story points are often applied during planning poker, a collaborative process where team members discuss and estimate tasks together. This fosters a shared understanding of the work ahead and helps identify potential challenges early.
What Do Story Points Consider?
- Complexity of the work
- Amount of effort required
- Uncertainty or risk involved
- Relative size compared to other stories
Pros and Cons of Story Points
Pros of Story Points
- Relative effort focus: By emphasizing complexity over exact time, story points can be more accurate for unpredictable or complex tasks.
- Team collaboration: The discussion during planning poker builds consensus and improves task clarity.
- Long-term planning: Tracking velocity (story points completed per sprint) helps teams forecast future work.
- Accounts for uncertainty: The Fibonacci sequence naturally reflects increasing uncertainty with larger estimates.
Cons of Story Points
- Abstract nature: New team members or stakeholders may struggle to understand story points since they don't translate directly to time.
- Time ambiguity: Without a time component, story points may not satisfy stakeholders needing concrete deadlines.
- Learning curve: Teams new to agile methodologies might find the concept initially confusing.
- Subjectivity: Different teams may interpret point values differently, making cross-team comparisons difficult.
What Are Hours-Based Estimates?
Estimating in hours means predicting the actual time a task will take to complete. This approach is straightforward and aligns with traditional project management, where tasks are broken into specific time allotments.
Hours are intuitive and widely understood, making them handy for short-term planning and resource management. They provide a concrete measure that's easy to communicate to both team members and stakeholders.
What Do Hour Estimates Represent?
- Actual working time needed to complete a task
- Calendar time for planning and scheduling
- Resource allocation and availability
- Direct input for budgeting and billing
Pros and Cons of Hours
Pros of Hours
- Clear and concrete: Hours provide a tangible time estimate that's easy for everyone to interpret.
- Short-term planning: They're ideal for daily or weekly scheduling and allocating resources.
- Traditional alignment: Teams transitioning from waterfall methodologies may find hours more familiar.
- Stakeholder friendly: Hours translate directly to timelines and budgets that stakeholders can easily understand.
Cons of Hours
- Accuracy challenges: Complex tasks with unknowns can lead to inaccurate hour estimates.
- Micromanagement risk: Overemphasis on hours might pressure teams to stick rigidly to time targets.
- Stress factor: Exact time commitments can create unnecessary stress for team members.
- Ignores complexity: Hour estimates may not fully account for task complexity or risk factors.
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Start Estimating NowComparing Story Points and Hours
The core difference between these methods lies in their focus:
| Aspect | Story Points | Hours |
|---|---|---|
| What they measure | Relative effort and complexity | Absolute time |
| Best for | Long-term planning, complex work | Short-term planning, well-defined tasks |
| Learning curve | Steeper for teams new to agile | Minimal - intuitive concept |
| Stakeholder communication | May require explanation | Naturally understood |
| Accuracy for complex tasks | Generally better | Often less accurate |
When to Use Each Method
When to Use Story Points
Story points shine in agile environments with complex or uncertain work. They're ideal for teams that:
- Understand their velocity and use it for planning.
- Tackle creative or unpredictable projects.
- Prioritize collaborative estimation.
- Have established agile practices and mindsets.
- Need to forecast long-term delivery timelines.
Real-World Example
A software development team building a new product with many unknowns might use story points. This allows them to account for uncertainty while still planning effectively based on their established velocity of 30 points per sprint.
When to Use Hours
Hours work best for:
- Teams new to agile, easing the shift from traditional methods.
- Projects with predictable, well-defined tasks.
- Scenarios requiring precise time tracking (e.g., billing or compliance).
- Short-term planning and immediate resource allocation.
- Stakeholders who need concrete timeline commitments.
Real-World Example
A team working on maintenance tasks or well-understood feature enhancements might prefer hours. With clear requirements and familiar technology, they can accurately predict that a specific bug fix will take approximately 4 hours to implement and test.
Hybrid Approaches
Some teams blend both methods for flexibility:
- Story points for sprints: Use story points to estimate effort during sprint planning.
- Hours for tasks: Break down daily work into hour-based estimates.
This hybrid approach combines high-level flexibility with granular precision, though it may add complexity by requiring teams to juggle two systems.
Implementing a Hybrid Approach
In a hybrid model, a team might estimate user stories in points during sprint planning, then have individual developers break down their assigned stories into hourly tasks for daily planning. This provides both the long-term predictability of points and the short-term clarity of hours.
Conclusion
There's no universal winner in the story points vs. hours debate—it depends on your team's needs. Here's a quick guide:
- Choose story points if your team thrives on collaboration, works on complex tasks, or focuses on long-term planning with velocity.
- Opt for hours if you're new to agile, handle predictable tasks, or need exact time estimates for stakeholders.
- Try a hybrid if you want the best of both worlds.
Ultimately, the right method is the one that suits your team's context, project type, and stakeholder expectations. Experiment with both, refine your process, and adapt as you go. Estimation isn't about perfection—it's about enabling better planning and communication.
