Diminishing Returns–A Key Agile Principle
Posted by Robert Merrill on February 6, 2009 under Agile Methods, Estimation | 
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With just a little bit of effort, the uncertainty in a project estimate drops rapidly. But there comes a point where getting even a little bit more accuracy takes a lot more work (yellow line) and there
“Real Agile teams don’t waste time on X.”
“You can’t deliver quality software without getting X right first.”
My favorite quote from fantasy writer and Christian apologist C. S. Lewis is this: “(The Devil) often sends errors into the world in pairs—pairs of opposites…He relies on your extra dislike of one to draw you gradually into the opposite one. But do not let us be fooled. We have to keep our eyes on the goal and go straight through between both errors.”
A key principle of Agile software development (and much else in business besides) is that of “diminishing returns.” At some point, extra effort in the same direction, even on generally worthwhile activity, is no longer worth it.
I most often find myself talking about diminishing returns when it comes to cost and schedule estimation. “Robert,” someone comes to me, “I have an idea for some software that’s going to save us a million bucks. How long would it take to build it?” Read more of this article »
