In general the Scrum team formation decision will be taken at the leadership level of the Organization. It depends on the structure of the Organization such as Matrix, Functional or Projectized. Scrum teams should have self-managing and cross-functional characteristics. Below article helps to understand the guidelines to form the Scrum team effectively.
1. Highlight the Project Constraints Clearly
- Total Budget (B): How much money is available for the entire project.
- Project Duration (T): How long the Scrum Team will work (e.g., 4 months).
- Cost per Team Member per Month (C): Fully loaded cost (salary + overheads).
- Average Team Velocity per Sprint (V): Estimated based on historical data or industry average.
2. Calculate the Total Cost for One Team Member
Cost_Per_Member = C × T
3. Calculate Maximum Possible Team Size
Max_Team_Size = B ÷ Cost_Per_Member
Note: Round down to the nearest whole number.
4. Adjust for Ideal Scrum Team Size
As per Scrum Guide:
- Up to 8 Developers (not including Scrum Master and Product Owner).
- Too few leads to not enough capacity.
- Too many leads to coordination overhead, communication, and transparency challenges.
So even if your budget allows you to have 15 people, try to split into multiple Scrum Teams with each team containing up to 8 developers.
5. Calculate Total Team Velocity
Total_Velocity = Max_Team_Size × V
This helps estimate how many features (or story points) you can deliver.
6. Match Velocity to Feature Demand
Estimate total features (in Story Points) users want, say Total_Feature_Points (F).
Total_Sprints = T ÷ Sprint_Length
Total_Deliverable_Features = Total_Velocity × Total_Sprints
Compare this with F. If:
- Deliverable_Features ≥ F → Your team is sufficient.
- Deliverable_Features < F → Prioritize or find ways to reduce complexity/scope.
Example
- Budget: ₹40,00,000
- Time: 4 months
- Cost per member/month: ₹2,00,000
- Sprint Length: 2 weeks
- Average Velocity per sprint: 25 SP
Step 1: Cost per member for 4 months
₹2,00,000 × 4 = ₹8,00,000
Step 2: Max team size
₹40,00,000 ÷ ₹8,00,000 = 5 members
Step 3: Velocity
25 SP per sprint (from above)
Step 4: Total Deliverable SP
4 months = 16 weeks → 8 sprints
Total: 25 × 8 = 200 SP
If the total size of estimated features < 200 Story Points, then it is within budget and time.
If the total size of estimated features > 200 Story Points, you’re short. So prioritize or increase budget/time.
Forming a Scrum Team is a critical organizational decision that depends on budget, duration, and structure. Enrolling in a CSM training institute in Hyderabad, can help professionals understand the principles behind creating self-managing, cross-functional teams. The right team size ensures a balance between capacity and collaboration, avoiding both inefficiencies and coordination challenges. To further enhance practical knowledge, opting for A CSM course training institute in Hyderabad, provides the skills needed to calculate team velocity, estimate deliverables, and guide projects toward successful outcomes.
