A Complete Guide to Burndown Charts

Imagine you are on a solo road trip with a set destination. You constantly check your map and fuel gauge to check whether you are on a track. Now, replace the road trip with an agile project and the map with a burndown chart. 

Just like a map guides your journey, a burndown chart provides a clear picture of how much work has been completed and what remains. 

What is the Burndown Chart? 

Burndown charts are visual representations of the team’s progress used for agile project management. They are useful for scrum teams and agile project managers to assess whether the project is on track.

Burndown charts are generally of three types:

Product Burndown Chart

The product burndown chart focuses on the big picture and visualizes the entire project. It determines how many product goals the development team has achieved so far and the remaining work.

Sprint Burndown Chart

Sprint burndown charts focus on the ongoing sprints. It indicates progress towards completing the sprint backlog.

Epic Burndown Chart

This chart focuses on how your team performs against the work in the epic over time. It helps to track the advancement of major deliverables within a project.

How Does a Burndown Chart Work? 

A burndown chart shows the amount of work remaining (on the vertical axis) against time (on the horizontal axis). It includes an ideal work completion line and the actual work progress line. As tasks are completed, the actual line "burns down" toward zero. This allows teams to identify if they are on track to complete their goals within the set timeline and spot deviations early.

Purpose of the burndown chart 

A burndown chart is a visual tool used by agile teams to track progress. Here is a breakdown of its key functions: 

Identify Issues Early 

Burndown charts allow agile teams to visualize the remaining work against time which helps to spot issues early from the expected progress. They can identify bottlenecks or obstacles early which enables them to proactive problem-solving before the issue escalates. 

Visualize Sprint Progress

The clear graphical representation of work completed versus work remaining makes it easy for teams to see how much they have accomplished and how much is left to do within a sprint. This visualization helps maintain focus and alignment among team members. 

Boost Team Morale 

The chart enables the team to see their tangible progress which significantly boosts their morale. As they observe the line trending downward, indicating completed tasks, it fosters a sense of achievement and motivates them to continue performing well.

Improve Estimation

After each sprint, teams can analyze the burndown chart to evaluate their estimation accuracy regarding task completion times. This retrospective analysis helps refine future estimates and improves planning for upcoming sprints. 

Burndown Chart vs. Burnup Chart

How to create a burndown chart in Excel? 

Step 1: Create Your Table

Open a new sheet in Excel and create a new table that includes 3 columns.

The first column should include the dates of each sprint, the second column have the ideal burndown i.e. ideal rate at which work will be completed and the last column should have the actual burndown i.e. updating them as story points get completed.

Step 2: Add Data in these Columns

Now, fill in the data accordingly. This includes the dates of your sprints and numbers in the Ideal Burndown column indicating the desired number of tasks remaining after each day throughout the let’s say, 10-day sprint.

As you complete tasks each day, update the spreadsheet to document the number of tasks you can finish under the ‘Actual Burndown’ column.

Step 3: Create a Burndown Chart

Now, it’s time to convert the data into a graph. To create a chart, follow these steps: Select the three columns > Click ‘Insert’ on the menu bar > Select the ‘Line chart’ icon, and generate a line graph to visualize the different data points you have in your chart.

Limitations of Burndown Chart 

One-Dimensional View

A Burndown chart mainly tracks the amount of work remaining, measured in story points or hours. This one-dimensional view does not offer insights into the complexity or nature of the tasks, hence, oversimplifying project progress. 

Unable to Detect Quality Issues or Technical Debt

Burndown charts fail to account for quality issues or the accommodation of technical debt. Agile teams might complete tasks on time but compromise on quality. This further leads to long-term challenges that remain invisible in the chart.

Lack of Visibility into Team Dynamics

The burndown chart does not capture team dynamics or collaboration patterns. It fails to show how team members are working together, which is vital for understanding productivity and identifying areas for improvement.

Mask Underlying Problems

The problems might go unnoticed related to story estimation and sprint planning. When a team consistently underestimates tasks, the chart may still show a downward trend. This masks deeper issues that need to be addressed.

Changes in Work Scope

Another disadvantage of burndown charts is that they do not reflect changes in scope or interruptions that occur during a sprint. If new tasks are added or priorities shift, the chart may give a misleading impression of progress.

Unable to Show Work Distribution and Bottlenecks

The chart does not provide insights into how work is distributed among team members or highlight bottlenecks in the workflow. This lack of detail can hinder efforts to optimize team performance and resource allocation.

What Key Components Are Missing in Burndown Charts for a Complete View of Sprints?

Burndown charts are great tools for tracking progress in a sprint. However, they don’t provide a full picture of sprint performance as they lack the following dimensions: 

Real-time Sprint Monitoring Metrics

Velocity Stability Indicators 

  • Sprint velocity variance: It tracks the difference between planned and actual sprint velocities to assess predictability.
  • Story completion rate by size category: It evaluates the team's ability to complete stories of varying complexities.
  • Average time in each status: It highlights bottlenecks by analyzing how long stories stay in each stage (To Do, In Progress, etc.).
  • Number of stories carried over: It measures unfinished work moved to the next sprint, which impacts planning accuracy.
  • Scope change percentage: It reflects how much the sprint backlog changes during execution

Quality Metrics

  • Code review coverage and throughput: It highlights the extent and speed of code reviews to ensure quality.
  • Unit test coverage trends: It measures improvements or regressions in unit test coverage over time.
  • Number of bugs found: It monitors the quality of sprint deliverables.
  • Technical debt items identified: It evaluates areas where shortcuts may have introduced long-term risks.
  • Build and deployment success rate: It highlights stability in CI/CD processes.
  • Production incidents related to sprint work: It connects sprint output to real-world impact.

Team Collaboration Indicators

  • Code review response time: It measures how quickly team members review code, impacting workflow speed.
  • Pair programming hours: It reflects collaborative coding time, boosting knowledge transfer and quality.
  • Knowledge-sharing sessions: This indicates team growth through discussions or sessions.
  • Cross-functional collaboration: It highlights collaboration across different roles, like devs and designers.
  • Blockers resolution time: It monitors how quickly obstacles are removed.
  • Team capacity utilization: It analyzes whether team capacity is effectively utilized.

Work Distribution Analysis

  • Task distribution across team members: It checks for workload balance.
  • Skill coverage matrix: It monitors whether all necessary skills are represented in the sprint.
  • Dependencies resolved: It highlights dependency identification and resolution.
  • Context switching frequency: It analyzes task switching, which can impact productivity.
  • Planned vs unplanned work ratio: It evaluates how much work was planned versus ad-hoc tasks.

Sprint Retrospective Analysis

Quantitative Measures

Sprint Goals Achievement
  • Completed story points vs committed: It evaluates sprint completion success.
  • Critical features delivered: It monitors feature delivery against sprint goals.
  • Technical debt addressed: It tracks progress on resolving legacy issues.
  • Quality metrics achieved: It ensures deliverables meet quality standards.
Process Efficiency
  • Lead time for user stories: Time taken from story creation to completion.
  • Cycle time analysis: It tracks how long it takes to move work items through the sprint.
  • Sprint predictability index: It compares planned vs actual progress consistency.
  • Planning accuracy percentage: It monitors how well the team plans tasks.
Team Performance
  • Team happiness index: It gauges morale.
  • Innovation time percentage: It monitors time spent on creative or experimental work.
  • Learning goals achieved: It tracks growth opportunities taken.
  • Cross-skilling progress: It measures skill development.

Qualitative Measures

Sprint Planning Effectiveness
  • Story refinement quality: It assesses the readiness and clarity of backlog items.
  • Estimation accuracy: It monitors the accuracy of time/effort estimates.
  • Dependencies identification: It indicates how well dependencies were spotted.
  • Risk assessment adequacy: It ensures risks are anticipated and managed.
Team Dynamics
  • Communication effectiveness: It ensures clarity and quality of team communication.
  • Collaboration patterns: It highlights team interactions.
  • Knowledge sharing: It checks for the effective transfer of knowledge.
  • Decision-making efficiency: It gauges the timeliness and effectiveness of team decisions.
Continuous Improvement
  • Action items completion rate: It measures follow-through on retrospective action items.
  • Process improvement initiatives: It tracks changes implemented for efficiency.
  • Tools and automation adoption: It monitors how well the team leverages technology.
  • Team capability enhancement: It highlights skill and process improvements.

Typo - An Effective Sprint Analysis Tool

Typo’s sprint analysis feature allows engineering leaders to track and analyze their team’s progress throughout a sprint. It uses data from Git and the issue management tool to provide insights into getting insights on how much work has been completed, how much work is still in progress, and how much time is left in the sprint hence, identifying any potential problems early on and taking corrective action.

Sprint analysis in Typo with burndown chart

‍Key Features:

  • A velocity chart shows how much work has been completed in previous sprints.
  • A burndown chart to measure progress
  • A sprint backlog that shows all of the work that needs to be completed in the sprint.
  • A list of sprint issues that shows the status of each issue.
  • Time tracking to See how long tasks are taking.
  • Blockage tracking to check how often tasks are being blocked, and what the causes of those blocks are.
  • Bottleneck identification to identify areas where work is slowing down.
  • Historical data analysis to compare sprint data over time.

Conclusion 

Burndown charts offer a clear and concise visualization of progress over time. While they excel at tracking remaining work, they are not without limitations, especially when it comes to addressing quality, team dynamics, or changes in scope. 

Integrating advanced metrics and tools like Typo, teams can achieve a more holistic view of their sprint performance and ensure continuous improvement.