Agile

Story Points

A unit of measure for estimating effort in agile development.

Detailed Explanation

Story points are a unit of measure used in agile to estimate the overall effort required to implement a user story or backlog item. They reflect a combination of complexity, effort, and uncertainty — not just time. Common scales include Fibonacci (1, 2, 3, 5, 8, 13, 21) and T-shirt sizing (XS, S, M, L, XL).

Story points are relative, not absolute. A 5-point story is roughly 2.5 times the effort of a 2-point story. Teams calibrate by choosing a reference story and estimating everything relative to it. Over time, teams develop a shared understanding of what each point value means.

The primary value of story points is enabling velocity calculation — the average number of points completed per sprint. Velocity enables realistic sprint planning and release forecasting without converting estimates to hours, which gives a false sense of precision.

Key Points

  • Reflect complexity, effort, and uncertainty combined
  • Common scales: Fibonacci sequence or T-shirt sizes
  • Relative estimates, not absolute hours or days
  • Teams calibrate with a reference story
  • Enable velocity calculation and release forecasting
  • Avoid false precision of hour-based estimates

Practical Example

A team uses Fibonacci story points. Their reference story ('Add a text field to a form') is 2 points. 'Build user authentication with OAuth' is estimated at 8 points (4x the reference in complexity/effort). 'Change button color' is 1 point. The team's average velocity is 30 points per sprint, so they plan 28-32 points per sprint.

Tips for Learning and Applying

1

Use Planning Poker for team consensus on estimates

2

Do not convert story points to hours — that defeats the purpose

3

Recalibrate periodically as the team's understanding evolves

4

Track velocity trends to improve sprint planning accuracy

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