methodatlas
Delivery

Cost of Delay

Moves scope, order, and delivery flow toward a concrete result through "adopt the initiative list", "clarify value types for each initiative, such as revenue, efficiency, or risk", and "derive a sorted sequence".

Core question
How much does each week cost us when this initiative is not delivered, and in which order should we maximize avoided loss?
HighWorkshop90-180 min
Open runsheetPlan sessionStart comparison
Purpose

Helps clarify scope, order, and delivery flow in concrete terms. It makes work, constraints, and sequence manageable. The result is captured as a Cost of Delay table and prioritization sequence.

How it works

The team follows the steps "adopt the initiative list", "clarify value types for each initiative, such as revenue, efficiency, or risk", "estimate Cost of Delay for each initiative", "divide Cost of Delay by processing time", and "derive a sorted sequence". Each step is made visible. At the end, a Cost of Delay table and prioritization sequence are available so decisions, tests, or actions can continue directly.

Visual orientation

Method sketch for a quick mental model.

Cost of Delay · Wertverlust pro Zeit sichtbar machenInitiativen nach entgangenem Wert, Verzögerungsprofil und Dauer vergleichen, um eine wirtschaftliche Sequenz abzuleiten
Cost of DelayDas Visual zeigt Initiativen, deren entgangener Wert pro Zeiteinheit mit der Bearbeitungsdauer verrechnet und daraus eine wirtschaftliche Reihenfolge abgeleitet wird.Verzögerung als wirtschaftlichen Verlust sichtbar machenCost of Delay vergleicht Optionen nicht nur nach Aufwand, sondern nach verlorenem Wert pro Zeiteinheit.InitiativenWerttypen und ZeitabhängigkeitklärenCost of Delay BoardInitiativeCoDDauerCoD/DauerA Marktfenster90/Woche4 Wochen22,5B Risiko senken50/Woche2 Wochen25,0C Effizienz35/Woche5 Wochen7,0SequenzCoD ÷ Dauer ergibt PrioritätNächstes zuersthöchster Wertverlust proZeiteinheitWertverlust pro Zeitschätzenwirtschaftlichsortierennicht Aufwand alleinpriorisieren

Flow

  1. 1Adopt the initiative list
  2. 2Clarify value types for each initiative, such as revenue, efficiency, or risk
  3. 3Estimate Cost of Delay for each initiative
  4. 4Divide Cost of Delay by processing time
  5. 5Derive a sorted sequence

The runsheet guides execution with 5 phases, timeboxes, 6 pitfalls, and clear stop criteria.

Open runsheet

Ideal for

  • Portfolio reviews
  • Scaled Agile setups
  • Investment committees

Not good for

  • Very early discovery without a value assumption

Deep dive

In detail

Cost of Delay, often abbreviated as CoD and popularized by Don Reinertsen, expresses how much the organization loses every week or month that an initiative remains unresolved. CoD can be estimated in absolute money terms or as relative profiles. The method forms the economic argument behind WSJF and is central in scaled Agile setups.

Facilitation

Allow relative size estimates instead of forcing false precision. Explain that CoD is rarely linear.

Output artifacts
CoD-TabellePriorisierungssequenz
Tags
prioritizationdeliveryeconomicsdecision

Sources

Cost of delay - Wikipediaen.wikipedia.org
Artifact templates
Cost of Delay Working TemplateCompact working template for Cost of Delay with context, input, output artifacts, and next step.
markdown

cost-of-delay-working-template.md

Compact working template for Cost of Delay with context, input, output artifacts, and next step.

Cost of Delay Working Template

Goal

Evaluates the economic value per unit of time of an initiative.

Context

When and for what do we use this method?

Input

Which data, observations, decisions, or materials are available?

Execution

Short notes along the runsheet.

Output artifacts

  • CoD table:
  • Prioritization sequence:

Assumptions and open questions

  • ...

Decision / next step

Owner, date, and success signal.

When to choose differently

Short decision aid for existing alternatives.

WSJF

Statt Cost of Delay, wenn ihr Prioritäten über Verzögerungskosten und Jobgröße balancieren wollt.

Similar methods

All methods
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MoSCoW

Turns scope, ordering, and flow into a tangible result by collecting items, assigning must/should/could/won't categories, and finalizing the release set.

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Moves target group, value, goals, and priorities toward a concrete result through "prepare the idea backlog", "define scales for I, C, and E", and "select top ideas for testing or building".

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Monte Carlo Forecasting

Moves scope, sequence, and delivery flow toward a concrete result through "formulate the forecast question", "choose historical flow data", and "update the forecast regularly".

Agile
WSJF

Turns backlog, sprint work, and team flow into a tangible result by defining the work queue, estimating cost of delay, and pulling highest value first.

Statt Cost of Delay, wenn ihr Prioritäten über Verzögerungskosten und Jobgröße balancieren wollt.

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Communication Plan

Turns scope, sequencing, and delivery flow into a tangible result by listing stakeholders and audiences, clarifying information needs, and planning review and adaptation.

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Structures product work around shaped pitches, bets, fixed cycles, hill charts, and scope hammering.