Flow and capacity planning

Reference class forecasting

Also known as Reference class forecasting planning

By WeavePublished 2 min read

Definition

Reference class forecasting is a concept used in software delivery planning to describe a condition, relationship, estimate, or decision about engineering work.

What Reference class forecasting means

Reference class forecasting is a concept used in software delivery planning to describe a condition, relationship, estimate, or decision about engineering work. It helps separate a system constraint from an individual judgment about effort or value. The term is clearer when the team defines what enters the measure or decision, what counts as completion, and which planning period is in scope. That discipline prevents a familiar phrase from becoming a different metric in every meeting.

A concrete example

For example, two teams can use the same term while choosing different denominators, so their definitions should be written before their numbers are compared. The record should include the starting condition, the intended result, and the tradeoff that makes the choice possible. When the outcome differs from the plan, the team can inspect the assumption instead of assigning a simplistic explanation to the people doing the work.

Limits and interpretation

The label can create false precision when the underlying work is novel, the data is incomplete, or the completion rule changes. Use this concept as an input to a decision or learning loop, not as a detached score. Keep the relevant work population visible, and revisit the interpretation when the system changes. A useful planning artifact explains what someone should do next and what evidence would change that action.

How Weave fits

Weave can help teams inspect delivery evidence related to reference class forecasting, including completed work, waiting, review, and rework patterns when those records are connected. That context can inform a planning discussion, but Weave does not make the decision, infer missing organizational context, or guarantee a date, capacity level, or outcome.

How this relates to Weave

Weave can help teams inspect delivery evidence related to reference class forecasting, including completed work, waiting, review, and rework patterns when those records are connected. That context can inform a planning discussion, but Weave does not make the decision, infer missing organizational context, or guarantee a date, capacity level, or outcome.

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Sources and further reading

  1. The Kanban Guide