How I estimate work

The only reasonable way to estimate something is in work hours. Everything else is severely misguided.

Also, if you don't follow up any estimate is meaningless.

> estimates are not by or for engineering teams.

It's surprising the nuance and variety of how management decisions are made in different orgs, a lot depends on personalities, power dynamics and business conditions that the average engineer has almost no exposure to.

When you're asked for an estimate, you've got to understand who's asking and why. It got to the point in an org I worked for once that the VP had to explicitly put a moratorium on engineers giving estimates because those estimates were being taken by non-technical stakeholders of various stripes and put into decks where they were remixed and rehashed and used as fodder for resourcing tradeoff discussions at the VP and executive level in such a way as to be completely nonsensical and useless. Of course these tradeoff discussions were important, but the way to have them was not to go to some hapless engineer, pull an overly precise estimate based on a bunch of tacit assumptions that would never bear out in reality, and then hoist that information up 4 levels of management to be shown to leadership with a completely different set of assumptions and context. Garbage in, garbage out.

These days I think of engineering level of effort as something that is encapsulated as primarily an internal discussion for engineering. Outwardly the discussion should primarily be about scope and deadlines. Of course deadlines have their own pitfalls and nuance, but there is no better reality check for every stakeholder—a deadline is an unambiguous constraint that is hard to misinterpret. Sometimes engineers complain about arbitrary deadlines, and there are legitimate complaints if they are passed down without any due diligence or at least a credible gut check from competent folks, but on balance I think a deadline helps engineering more than it hurts as it allows us to demand product decisions, designs, and other dependencies land in a timely fashion. It also prevents over-engineering and second system syndrome, which is just as dangerous a form of scope creep as anything product managers cook up when the time horizon is long and there is no sense of urgency to ship.

In Australia, an SDE + overhead costs say $1500 / work day, so 4 engineers for a month is about $100k. The money has to be allocated from budgets and planned for etc. Dev effort affects the financial viability and competitiveness of projects.

I feel like many employees have a kind of blind spot around this? Like for most other situations, money is a thing to be thought about and carefully accounted for, BUT in the specific case where it's their own days of effort, those don't feel like money.

Also, the software itself presumably has some impact or outcome and quite often dates can matter for that. Especially if there are external commitments.