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Cost of Delay

Cost of Delay (COD) is the cost associated to a delay in investment. By calculating the COD you can make business decisions based on financial data.

Cost of Delay (COD) is the cost associated to a delay in investment.

Feature A requires an effort of 5 weeks of work for team X. We expect to make $100,000.00 per week once the feature is built and deployed to production.

Feature B requires an effort of 12 weeks of work for team X. We expect to make $350,000.00 per week once the feature is built and deployed to production.

Which feature should team X work first?

Answer this question and you will have understood Cost Of Delay (COD).

These are a few good articles on this topic:

Paulo Caroli

Paulo Caroli is the author of the best-selling book “Lean Inception: How to Align People and Build the Right Product” (the first on a series of books on business agility). He's also the creator of FunRetrospectives.com , a site and book about retrospectives, futurospectives and team building activities. Caroli writes on this blog frequently. Receive the next post in your email. Sign up here.
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