Overview

Cost Estimation and Benefits Estimation are optional features that can greatly enhance the substantiation and value of your strategy roadmap.  

Jibility supports the ability to capture cost estimates for each Course of Action and Initiative.  By defining the estimated cost for your Courses of Action and Initiatives you can improve 

  1. understanding of the approximate size of work; and
  2. prioritisation of scope of initiatives to fall within budget.

The cost estimation feature is customisable, and you can choose to enable or disable this feature in the Canvas properties settings. 

TIPS: exclude cost estimation feature upfront to focus on building the basics of your strategy roadmap.   This will allow you to socialise the strategy roadmap with your stakeholders without getting stuck in detailed discussions around costs.  Sometimes, showing cost estimation upfront can be an unnecessary distraction.

Configure Your Canvas Estimation Setting

The Canvas properties will allow you to configure the Cost Estimation parameters.  These parameters are

  1. Enable/disable the Cost Estimation Feature
  2. Define your own set of Cost Estimation Ranges
  3. Set your Cost Estimation Risk Profile
  4. Select your currency

By default, the Cost Estimation feature is enabled for all subscribers.  You can choose to disable this feature by using the toggle in the Canvas properties Estimation tab (see image below).  

A pre-defined set of estimation ranges (Cost Estimation Sizing Parameters) can be changed by altering the Range To column.  The Range From and Diff columns are automatically calculated. 

You can choose to set your Cost Estimation Risk Profile.  This is essentially a ratio between 0 to 1 to indicate whether your estimate should lean towards optimistic or pessimistic.  So, if you chose a cost estimate range from $25k to $50k then would you say that you would lean towards the higher end $50k (pessimistic) or lower end $25k (optimistic)?  How this parameter affects the Computed Estimated Cost is explained in the next section.

Also, you can choose a currency to for your locale.  Currently, we only support Dollar, Euro and Pound.

Estimating Courses of Action

In Jibility you define Courses of Action for each capability that requires change, delivers to an objective and tagged a priority.  In terms of granularity, a Course of Action, is the lowest level item of your strategy roadmap.  Therefore, providing a cost estimate for each Course of Action will give you the most accurate overall cost estimate for your strategy roadmap.

For each Course of Action you can define the Estimated Cost by

  1. selecting an Estimated Cost Range; or
  2. select "Custom" to enter a specific value.

Estimated Cost Range

When an Estimated Cost Range is selected the Computed Estimated Cost Value is
calculated based on the following formula:

Computed Estimated Cost Value = O + (P - O) * R

Where 

O is the optimistic Low range value
P is the pessimistic High range value
R is the Risk profile from 0 to 1 where Optimistic is 0 and Pessimistic is 1

Note, the Computed Estimated Cost Value is automatically rounded to a level of precision that is determined based on the estimation range.  For example, if the range is from $0 to $100 then the computed estimate is rounded to the nearest $1.  If the range is $1000 to $10,000 then the computed estimate is rounded to the nearest $100.  All ranges over $100,000 are rounded to the nearest $1,000. 

Custom Estimated Value

When "Custom" is selected, then you can enter a specific value instead of a computed estimation value.

Refining Initiative Estimated Costs

The Cost Estimation feature enables you to define an estimated cost for each Course of Action.  Given that an initiative is comprised of Courses of Actions the estimated cost for an Initiative is the aggregated cost of all the Courses of Actions for the initiative.

For each initiative, there can be additional costs which are not reflected in the cost of each Course of Action.  The additional cost can be the overhead cost of managing the initiative or a one-off cost for the setup of the initiative.  Jibility provides an "Estimated Additional Cost" field to cater for this at the initiative level.

TIPS: You may choose to provide a cost estimate at the Initiative level only.  That is, you do not want to provide a cost estimate for each Course of Action.  In this case, you can enter an estimated cost for an initiative by using the Estimated Additional Cost field only.

Prioritise Initiatives within Budget Constraints

When Cost Estimation is enabled, and you have defined the estimated cost for each initiative the Prioritise Initiative 2x2 can be used to prioritise and scope the initiative to meet your budget constraint.

In the example diagram given below.  The lasso was adjusted to change the priority zone.  As the priority zone is changed the total estimated cost for all initiatives within the lasso is shown on the bottom line as Priority Zone Estimated Cost.  The Total Estimated Cost is the cost for all initiatives on the 2x2.

In the above example, the user had roughly $1M budget, so it looks like the initiatives specific to the digital projects comes close to this budget.

Initiative Summary Published Document

Finally, the total estimated cost for each initiative is shown in the Initiative Summary document when the Cost Estimation feature is enabled.  In the Properties panel for this document, you can choose to show the Estimated Cost or exclude it.

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