How to Deal with People Who Ask for Estimates
A big challenge in project estimating is dealing with the requestor! Leaders often have a number in mind. They might want you to deliver an unachievable objective or expect an unreasonable level of accuracy. Here are a few techniques to handle a challenging estimate requestor.
- Point out unknowns. Because projects are unique, they include things that haven’t been done before. That’s where risk and uncertainty make estimating so challenging. When you discuss the development of an estimate with the requestor, talk about the unknowns. Point out what’s different or unique. This can help the requestor understand how difficult estimating can be. Then, ask the requestor questions about any insights they have about project unknowns. This can spark meaningful dialogue and produce a reasonable expectation for the estimate.
- Uncover and discuss assumptions. Requestors often have unspoken assumptions about the project concept, which can be related to their beliefs about technical complexity. Or they may remember a project they think is like the one they want estimated. Ask the requestor about their assumptions for the project and then talk about whether those assumptions make sense. This can change the requestor’s understanding of the estimating effort and result in a better initial estimate that will be accepted more readily.
- Present research possibilities. Doing research is a part of building good estimates. But sharing that with a requestor rarely relieves the pressure. You have a better chance of convincing them to support research by explaining what you want to research and the resources you will use to conduct it. The requestor might reduce their pressure for fast estimates when they see the details of the research that’s needed. The research helps bring facts and historical trends into your estimating.
- Use estimation ranges and ways to narrow them. Recommended practice is to associate a range with an estimate. For example, an order of magnitude estimate usually appears like $300,000 plus 75% – minus 25%. This range allows for the unknowns and risks that can affect your estimate. When you talk to the requestor, you need to share more information. A range isn’t enough. Talk about the data points and events that could narrow the estimate. Suppose one of the major unknowns is a vendor’s quote. Once you receive the quote and the cost is known, you can incorporate it into the estimate and narrow the range. Explaining this process helps the estimate requestor accept the variability of the estimate.
- Present historical data about past projects and the inaccuracies of hasty estimating. Discuss similar projects that can validate an estimate. And show how initial estimates are often off the mark. This can temper the requestor’s expectations. Make sure the referenced projects are truly similar. When you look at a past estimate that wasn’t accurate, identify why it differed from the actual values. That way, you can draw parallels to the current estimation process to get a better idea of the estimate and how it might not be accurate.
- Try to understand the requestor’s perspective and challenges. The requestor could have a valid business reason to pressure you for an estimate. Understanding their challenges can be helpful — it could uncover alternatives. For example, breaking a project into smaller phases to achieve the requestor’s objectives more quickly. Or expanding the use of a tool or process already in the business to satisfy a pressing business need.
What else have you done to manage requestors’ expectations and demands for estimates? Or what unsolved challenges do you have related to people asking for project estimates? Share with us in the comments section.
For more about estimating methods, check out my Project Management Foundations: Scheduling course.
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