Cost of Delay is a way of communicating the impact of time on the outcomes we hope to achieve. In this way, Cost of Delay combines urgency and value – two things that humans are not very good at distinguishing between. It should matter to us to know not just how valuable something is, but how urgent it is. The value that we miss out on when we deliver slowly or “late” can be enormous. It is often far more valuable to get something even a week earlier than it is to make it slightly cheaper to develop. These trade-offs are simply not obvious though, unless we understand the Cost of Delay.
As you will learn, quantifying the Cost of Delay not only helps improve prioritisation, it also help with making trade-off decisions, creates a sense of urgency, and changes the focus of the conversation.
Maybe this has got you interested in experimenting with it, but you’re not sure how to get started? If so, you’ve come to the right place. We’ve done this for lots of different organisations: from Fortune 500 giants like Apple and Maersk to smaller startups, as well as both public and private sector.