Time Core · Contingency Planning · Module

Slippage

Where plans actually slip, by how much and why — established from history rather than from the assumption that this time will be different.

The idea

How it works

Estimates are optimistic in a consistent and measurable direction. The planning fallacy is one of the most robust findings in behavioural research and it applies to organisations that know about it.

The correction is not to try harder at estimating. It is to look at what happened to comparable past work and adjust by that ratio, which is uncomfortable and reliable.

Working with it

In practice

  1. 01

    Keep the estimate and the actual

    One line per project. Within a year the ratio is visible and is usually consistent.

  2. 02

    Adjust by the historical ratio

    Rather than by re-estimating more carefully. The second does not work and the first does.

  3. 03

    Find the steps that always slip

    Usually approvals, integrations and anything involving a third party. They are the same ones each time.

  4. 04

    Separate slip from scope change

    A project that took twice as long because it doubled in size did not slip. Mixing them corrupts the ratio.

One level in

The components of slippage

A component is something that exists afterwards which did not exist before — a deliverable or a mechanism, not an intention.

  1. The history

    Estimated against actual, across past work.

    Learn
  2. The ratio

    How much estimates are typically out, and in which direction.

    Learn
  3. The usual suspects

    The steps that slip every time.

    Learn

The correction for optimistic estimates is not estimating more carefully. It is adjusting by the historical ratio.