How to Calculate Effort Variance in Scrum
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My team currently works in 3 week sprints and we are capturing Key Performance Indicator (KPI) for each sprint. One of the KPIs is Effort Variance (EV) per sprint
My question is at the end of the sprint, should I consider Effort only for Resolved user stories or for all user stories irrespective of whether they were closed or not. Let me try and explain with an example
Sprint 1 started from 26th Feb 2020 till 20 Mar 2020. At the start of the Sprint we estimated that we will do 10 user stories with an estimated effort of 500 Hours. At the end of the sprint we realised that we were able to complete only 5 user stories which took 200 hours to complete. The effort that was spent on the 10 user stories in the sprint was around 520 Hours.
In this scenario for calculating Effort variance, should I consider only effort spent in completing 5 user stories or should I consider the effort spent for all the 10 user stories?
You can't calculate EV on the 10 items yet because they aren't done, so you don't know what the total effort to complete them is. You could calculate EV on the 5 that were completed if you had estimates for those 5 independent of the other 5.