Context:
Despite decades of research in software cost estimation (SCE), the task
remains difficult and software project overruns are common. Many
researchers and practitioners agree that organisational issues and
methodologies are equally important for successful SCE. Regardless of
this recent development, SCE research is revolving heavily around
methodologies. At the same time project management research has
undergone a major shift towards managerial issues, and it found that top
management support can be the most important success factor for
projects.

Goal:
This study sheds light on top management’s role in SCE by identifying
real-life practices for top management participation in SCE, as well as
related organisational effects. Also, the impact of top management
actions on project success is examined.

Method:
The study takes a qualitative and explorative case study based
approach. In total, 18 semi-structured interviews facilitated
examination of three projects in three organisations.

Results:
The results show that top management takes no, or very little, direct
actions to participate in SCE. However, projects can conclude
successfully regardless of the low extent of participation.

Conclusions:
Top management actions may also induce bias in estimation, influencing
project success negatively. This implies that senior managers must
recognise the importance of seeking realism and avoid influencing the
estimation.