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I have a hierarchy similar to the one outlined here:
Initiative > Epic > "all other standard issue types"
Sometimes, I have a story (i.e. "all other standard issue type") that is not large enough to be an epic, but is still part of an Initiative. How can I make a story a child of an epic OR a child of an Initiative?
We had somewhat similar of a situation. We had additional issue types that needed to have their parent as the initiative but they were not considered an Epic.
You can create/associate multiple issue types at the Epic level in the hierarchy. I would consider doing this in your use case.
Also, I am curious how you determine what size a Story becomes an Epic. Do you use points? When I was leading a scrum team many years ago, we used SP estimation and if an item was estimated to be 13 points, we turned it into an Epic. Rudimentary but it worked for us.
You probably thought about this already, but I'd create an epic that maps 1:1 to the story to preserve the hierarchy structure.
There is also this post that addresses a similar question: https://community.atlassian.com/t5/Advanced-Roadmaps-questions/Portfolio-Can-t-nest-story-task-under-initiative-directly/qaq-p/1260555