The Challenges of Estimating Large Microsoft Dynamics 365 Projects and a Potential Solution

#estimating

Dynamics 365 ERP - General

Estimating large software implementation projects like Microsoft Dynamics is challenging due to difficulties in achieving accurate estimates with low variance.
The article explores the factors affecting estimation, such as resource struggles, inconsistencies in estimates across teams, and the challenges of implementing new technology.
Traditional estimation methods often lead to uncomfortable situations where estimates need to be adjusted to make the project plan work.
T-shirt sizing and Fibonacci scales were introduced to address the communication of estimate variances but ultimately required conversion to actual numbers for project planning.
A new approach called Top-Down Budgeting, inspired by David Heinemeier Hansson's blog post, advocates for experienced resources setting a budget for the entire backlog to shift focus from estimates to budgets.
Top-Down Budgeting offers benefits such as reduced estimation processes, alignment on estimates, and better timeline expectations for project planning.
Stream leads work within the budget set by Enterprise Architects and can escalate if additional budget is needed, fostering better budget management and project success.
By adopting a top-down budgeting approach, organizations can enhance planning, accountability, and overall success in large ERP projects.

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