Cost of Delay: better prioritisation, trade-offs, conversations
summary
Cost of Delay is quantified and used as a decision tool: teams classify value into new revenue / protect revenue / reduce cost / avoid cost, compute Cost of Delay and use CD3 (Cost of Delay ÷ duration) to rank work, and expose urgency profiles so trade-offs become numeric. Real examples: a feature costs $210,000 per week while improving invoice accuracy yields ~$80k/week and a regulatory fix can be ~$1,000,000/week. Applied across a $100m portfolio, this shortens end‑to‑end cycle time, reduces queues and drives prioritisation that actually changes outcomes.
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chapters (15)
- 0:00Intro
- 1:00Why Cost of Delay?
- 6:34Cumulative Flow Diagram
- 7:44Sound familiar?
- 14:31Typical Value Stream Map
- 16:08Urgency Paradox
- 20:23A framework for thinking about value
- 22:37A couple of tactics for getting to
- 30:26Quantifying the value of information
- 33:54Scheduling decisions
- 36:32Cost of Delay: Trade-off decisions
- 41:39Enterprise Architecture
- 44:21Distribution of value
- 44:52Black Swans: Arrival is Random
- 45:11Cost of delay. Quantified.
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