We are all used to estimates for general contract work where the estimate is almost always based on labor hours.

If you work with software development companies that use Agile, you'll probably be introduced to "story points," sometimes simply referred to as "points."

Agile represents a holistic approach to developing, building and releasing software. The main focus is to drive the delivery of a highly user-friendly solution through an iterative process.

Software development companies that use Agile measure the effort of their work in points.

(If you want to learn more, read the Agile Manifesto and the 12 Principles Behind the Agile Manifesto!)

So what IS meaning?

Why do software companies use points?

And why should you even care?

When implemented correctly, story points provide great value to both the software developer and the stakeholders.

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