Let’s walk through each step of the estimation process with Story Points.

Step 1 — Identify a Base Story

Story Points are a complex unit that includes three elements: risk, complexity and
repetition.

Risk – Unclear Demand, Dependency on 3rd party and uncertainty in the future

Complexity – Efforts needed to develop a particular feature

Repetition – Monotonous task without any risks and complexity

To find our Base Story, we search for one elementary task that corresponds to
internal standards of Definition of Done for User Stories and assign it one Story
Point. This will be our Base Story.
Step 2 — Create a Matrix for Estimation

When estimating using Fibonacci sequence numbers, we create a matrix with

rows for each sequence number and their associated stories. Then, we gather all
our stories and start classifying them into rows, comparing the stories to each
other and to other completed stories. Notice that our Base Story is already in this
matrix in the first row with a value of one Story Point.

Here is one of our matrices:

Step 3 — Planning Poker

To assign Story Points to each story, we have a meeting where all specialists

that will work on the project get together and play Planning Poker.

Planning Poker is a consensus-based estimation technique to estimate product

backlogs. It can be used with various estimating units, but we use Planning

Poker with Story Points.

Planning Poker Estimation Process

1. Each estimator gets a set of cards;

2. All estimators select backlog items, discuss features, and ask questions;
 3. When a feature has been fully discussed, each estimator privately (to

make the estimate objective) chooses a card to represent his or her

estimate;

4. When all estimators have made their estimates, they reveal their cards at

the same time. If all estimates match, estimators select another backlog

item and repeat the same process. When estimates differ, the estimators

discuss the issue to come to a consensus.

5. By the end of Planning Poker, we’ve filled out the whole matrix. Our tasks

are divided into rows by the number of story points needed to implement

them. Finally, we place each backlog item in the appropriate row. There

can be several stories in one row.

Step 4 — Planning the Sprint

Now that we have a size estimate, you may be wondering how we convert these

sizes into man-hour estimates. Unfortunately, we can’t do this until the first sprint

is completed. While the first sprint is in progress we can track the team’s velocity.

As soon as the sprint is finished, we’ll know how many Story Points a team can

complete per sprint. We use these numbers to forecast the team's performance

for the next sprints.

When we have all backlog tasks estimated in terms of Story Points, we can

understand how many sprints we’re going to need to complete the project. And

finally, we can convert these abstract units into real calendar timelines.