Cost of delay (CoD) estimates the downside of not doing something.
This cost is important to know because it compounds over time. It is comprised of multiple factors:
- User or business value: relative value to user or revenue potential.
- Time criticality: Deadlines, declining potential, dependent milestones, customer satisfaction.
- Risk reduction or opportunity enablement: Removing potential future issues, enabling new opportunities or learning.
Estimated using relative values, with the project with the least value setting the baseline at 1.rS6
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“WSJF,” Scaled Agile Framework (blog), accessed January 7, 2021, https://www.scaledagileframework.com/wsjf/. (See notes.)