Capitalization Guide:

Software Development Capitalization

Practical approaches for engineering organizations to implement a defensible and sustainable capitalization process.

Section 4

Implementation Approaches

Common capitalization models with Dotwork

Dotwork supports a range of capitalization approaches that reflect the diversity of organizational environments. These approaches exist along a spectrum that ranges from lightweight estimation to highly detailed tracking.

ModelAllocation LevelEffort SignalScope of AllocationPrecision and DefensibilityOperational Overhead
High-Level Periodic AllocationManager and team high-level allocationJudgment informed by initiative participation and general work patternsAcross initiatives and broad buckets such as capitalizable work vs reactive or maintenance workDefensible when teams work on a small number of initiatives and allocation reflects a reasonable representation of time spentVery low
Proxy-Based EstimationTypically team or initiative levelOperational proxies such as story points, ticket counts, or pull requestsAcross initiatives using proxy totals to estimate effort distributionDefensible when proxies correlate consistently with engineering effortLow
Lightweight Individual ReflectionIndividual levelSelf-reported estimates of time allocationAcross multiple initiatives or categories of workDefensible when individuals periodically allocate their effort and the process is repeatableModerate
External Time Tracking IntegrationIndividual levelActual recorded hoursOften tied to specific project codes or job codesHighest precision because effort is recorded directly against initiatives or projectsHigh

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