Comment on How to Calculate Budgets For Agile Teams by John

I agree with Jesse. The reason why story points should not be directly mapped to labor cost is because story points are ‘relative’ sizing. if you are using Fibonacci numbers, the amount of effort between a 2 and an 8 , the 2 doesn’t necessarily translate to 4 times the amount of work of an 8 .

The relative sizing allows estimation of work to be more accurate by comparing the weight of a point which can be measured by a historical benchmark. By associating story points to explicit labor cost/hours/days, you are losing the benefit of relative sizing and making it explicit which is more prone to error in estimation.

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