Use Cost of Delay to See Value

One way to define the value for the work is to make sure the work is still valuable. Use the ideas from cost of delay to define the value now and in the future.

You may understand cost of delay without having known the name for it. Cost of delay, as illustrated by the diagram, is the cost you incur from not releasing the work when you want to, and the implications of that delay on future revenue.

images/value/cod.png

There are four potential costs when you delay work:

  • The company misses the potential sales from the introduction delay.

  • The delay introduces lower maximum sales.

  • The delayed introduction creates less overall demand, so the ...

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