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Introduction

The payout structure of a poker tournament can vary from conservative (where many of the players receive some kind of payout) to top-heavy (where most of the money goes to a few of the players). Most poker players prefer top-heavy payout structures because they can win a larger amount. If you are playing a game with inexperienced players it might be better to have a more flat payout structure to reward marginal players - if most players keep losing then they may stop playing to your games.

Types of Payout Structures

• Conservative - A conservative (i.e. flatter) payout structure will usually pay out money to about 20-25% of players. Usually, the first few players who finish in-the-money will simply get their buy-in back, and only people who finish higher than that will actually turn a profit. The winner of the tourney may only get about 20% of the total money.
• Top-heavy - A top-heavy payout structure will only pay out money to about 10% of the players. Usually, the winner of the tourney will get about 30-50% of the total money and the rest of the payouts will decline quickly.

Whether or not the tournament has a flat or steep payout structure, the winner of the tournament will typically get about double of the 2nd place finisher.

Most single-table tournaments have standard payout structures. For a full single-table tourney (8-10 people), the most common payout structure is to pay the top 3 players with 50% / 30% / 20%. For a short-handed (6 people) tourney, the most common payout is 60% / 40% to the top 2 people. You can check out my home poker game spreadsheet if you want a tournament payout calculator to see how much each player will get paid.

Sample Payout Structure

Here are two sample payout structures for a single and multi-table tournament.

6 player tournament - 2 players paid

20 player tournament - 5 players paid

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Planning Poker Scaled Agile

HPG ADMIN on March 1, 2013

What is Planning Poker?

Planning Poker is an agile estimating and planning technique that is consensus based. To start a poker planning session, the product owner or customer reads an agile user story or describes a feature to the estimators.

Each estimator is holding a deck of Planning Poker cards with values like 0, 1, 2, 3, 5, 8, 13, 20, 40 and 100, which is the sequence we recommend. The values represent the number of story points, ideal days, or other units in which the team estimates.

The estimators discuss the feature, asking questions of the product owner as needed. When the feature has been fully discussed, each estimator privately selects one card to represent his or her estimate. All cards are then revealed at the same time.

If all estimators selected the same value, that becomes the estimate. If not, the estimators discuss their estimates. The high and low estimators should especially share their reasons. After further discussion, each estimator reselects an estimate card, and all cards are again revealed at the same time.

The poker planning process is repeated until consensus is achieved or until the estimators decide that agile estimating and planning of a particular item needs to be deferred until additional information can be acquired.

When should we engage in Planning Poker?

Most teams will hold a Planning Poker session shortly after an initial product backlog is written. This session (which may be spread over multiple days) is used to create initial estimates useful in scoping or sizing the project.

Because product backlog items (usually in the form of user stories) will continue to be added throughout the project, most teams will find it helpful to conduct subsequent agile estimating and planning sessions once per iteration. Usually this is done a few days before the end of the iteration and immediately following a daily standup, since the whole team is together at that time anyway.

How does poker planning work with a distributed team?

Simple: go to PlanningPoker.com. Mountain Goat Software helped develop that website to offer it as a free resource to the agile community. A product owner, ScrumMaster or agile coach can log in and preload a set of items to be estimated. A private URL can then be shared with estimators who log in and join a conference call or Skype session. Agile estimating and planning then proceeds as it would in person.

Does Planning Poker work?

Absolutely. Teams estimating with Planning Poker consistently report that they arrive at more accurate estimates than with any technique they'd used before.

One reason Planning Poker leads to better estimates is because it brings together multiple expert opinions. Because these experts form a cross-functional team from all disciplines on a software project, they are better suited to the estimation task than anyone else.

After completing a thorough review of the literature on software estimation, Magne Jørgensen, Ph.D., of the Simula Research Lab concluded that “the people most competent in solving the task should estimate it.”

Second, a lively dialogue ensues during poker planning, and estimators are called upon by their peers to justify their estimates. Researchers have found that this improves estimate accuracy, especially on items with a lot of uncertainty as we find on most software projects.

Further, being asked to justify estimates has also been shown to result in estimates that better compensate for missing information. This is important on an agile project because the user stories being estimated are often intentionally vague.

Additionally, studies have shown that averaging individual estimates during agile estimating and planning leads to better results as do group discussions of estimates.

How can I get Planning Poker cards?

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Planning Poker cards are available in the Mountain Goat Software store. Mountain Goat Software's branded Planning Poker cards are sold at cost as a courtesy to the agile community.

Our full-color cards are the absolute highest-quality cards available anywhere. They are manufactured by the same company that prints many of the world's most popular playing card brands, including Bicycle, Bee, and the World Poker Tour.

We also offer royalty-free licenses to organizations that wish to produce their own cards. The license is available here: https://www.mountaingoatsoftware.com/agile/planning-poker/license

Recommended Resources Related To Planning Poker

• How Can We Get the Best Estimates of Story Size?
  
• The Best Way to Establish a Baseline When Playing Planning Poker
  
• Don’t Average During Planning Poker
  
• Agile Estimating
  

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