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Time is an Asset - Delay is a Cost

Cost of Delay is a vital concept for management teams to understand and use. It enables better decision-making concerning investments and cost-saving, and is the basis of a coherent economic framework for considering the trade-offs management are responsible for, when deciding for example, whether to focus on reducing cost, or on investments that might reduce costs or increase value in the future.

After over a year of blogging and conference presentations on the topic - much of which has focused on the technical rather than practical explanations - I want to draw these to a close here with some straightforward summaries for managers of agile teams. While I think most managers will benefit from looking more deeply at why this advice applies (and its limits based on the assumptions underlying it), I'm also clear that a summary of what to do is the most helpful.

My thinking has evolved over the year, since the preparation and publication of the Kanban guide to Kanban - Essential Kanb…

A "Qualitative" Formula for WSJF?

In this series of blogs we have been examining the use of Cost of Delay as a way of understanding ordering work - either from a quantitative approach using estimates for value, urgency, duration and/or size, or from a qualitative approach, such as the use of Delay Cost Profiles [1], Risk Profiles [2,3] or Value Size matrices [4]. The SAFe definition of WSJF is something of a hybrid, since it uses a formula, but a formula that has only "qualitative" value at best. Here is their definition [5]:



The 4 terms are determined by Planning Poker estimation using a Fibonacci scale (usually 1 to 20). The work items are ordered according to the formula following an estimation workshop. While this formula cannot provide a true quantitative analysis for ordering items to maximise value, some consultants using it have said that is a useful technique for the discussion it engenders among stakeholders. Once the numbers have been generated the items ordered, re-ordering to a better order is s…