Estimates are never wrong! Reduce the cost of delay than trying to right the estimates.Apeksha Patel
schedule 4 months agoSold Out!
Estimates are just that, estimates. They are never wrong and never right! Many teams get into the trap of getting the right estimates. In the process of getting the right estimates, they lose the focus on the product vision. This can reduce
- The effectiveness of the team leading to higher Cost of Delay(CoD)
- The efficiency of the team leading to higher cost of production
If the teams don't build the right product, they end up increasing
- Cost of rework
- Cost of relearning
- Sunk cost
- Opportunity cost
The cost of delay is much more than not getting estimates right. Higher the cost of delay, lower the revenues and lower the ROI. Lower ROI can lead to unhappy work environments, chasing cost reductions and loss of brand image. Scrum is well suited to reduce the cost of delay through incremental delivery.
ROI also depends on efficient ways of working. Wastes in Product Development can significantly reduce the ROI even if the revenues are higher. Scrum provides a cadence for teams to take a step back, reflect on ways of working to reduce cost of production as well. All in all Scrum is well designed to increase the ROI for the organizations by helping teams to reduce both Cost of Delay and Cost of Production.