Value and Urgency: The Power of Quantifying Cost of Delay

“If you only quantify one thing, quantify the Cost of Delay” – Don Reinertsen

Everyone seems to talk about Cost of Delay, but few are actually quantifying it. And yet doing so helps us to better manage stakeholders, improve prioritisation and change the focus of the conversation away from cost and dates onto delivering value quickly.

In this talk you will hear about how quantifying Cost of Delay of our ideas helps with:

– Improving prioritisation

– Managing multiple customers

– Trade off decisions across the whole portfolio

This is not a theoretical session, we’ve actually done this in lots of organisations: public and private sector, in large, medium and small organisations as well as using Cost of Delay across a $100m portfolio at a Fortune 500 company.

When people hear about Cost of Delay they sometimes doubt whether their organisation is ready for it. They say things like, “We don’t have the maturity for it”, or “We couldn’t do that because our stakeholders wouldn’t support it”. We’ve heard people say this too. And yet, in hindsight, people find it much easier than they thought!

From this session you will walk away with all the necessary knowledge and practical tips to get started with Cost of Delay and you will have seen lots of actual examples of Cost of Delay calculations from other organisations who have done this. You’ll also hear some interesting before and after results that might help you to make the case in your organisation. In our experience, quantifying Cost of Delay really helps to discover, nurture and speed up the delivery of value.

 
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Outline/structure of the Session

Talk

Learning Outcome

In this session you will learn:

  • a simple economic framework that will help improve prioritisation
  • how Cost of Delay helps with managing multiple customers
  • how Cost of Delay helps with trade off decisions across the whole portfolio
  • practical tips and techniques about how to get started with quantifying Cost of Delay
  • real examples of Cost of Delay calculations from many different companies

Target Audience

Product Owners, Product Managers, Development team members

schedule Submitted 9 months ago

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  • Sarabjit Singh Bakshi
    By Sarabjit Singh Bakshi  ~  7 months ago
    reply Reply

    Ozlem , 

    Just wanted to share that the content being showcased is available in its current sense on internet . What additional addons can make it more interesting . I would suggest if you could share parametrized ranges in examples to deduce the weightage , a 45 min sessions would essentially be too much ask for a novice audience and less value for those who understand the concept . 

     

    with regards

    sarab

    • Özlem Yüce
      By Özlem Yüce  ~  7 months ago
      reply Reply

      Dear programme team, 

      Thanks for accepting my talk, it's an honour to get the opportunity. However I will not be able to attend Agile India this time :(  As much as I would like to make this happen, I am afraid I can't afford to be there financially, giving up paid work, cost of flights etc. I am hoping I 'll get another chance in 2018 and perhaps the circumstances will be different this time. 

      Thanks

  • Deepti Jain
    By Deepti Jain  ~  8 months ago
    reply Reply

    Hi Again :)

    So will we just get to hear the conversation or will there be some activity and getting-hands-dirty too?

    Thanks,
    Deepti

    • Özlem Yüce
      By Özlem Yüce  ~  8 months ago
      reply Reply

      We haven't included a hands on exercise in this talk but we do have lots of examples of Cost of Delay calculations to inspire you to get going. However the 1 day workshop goes a lot deeper as we get you to calculate Cost of Delay for your own features in the class. 

      • Deepti Jain
        By Deepti Jain  ~  8 months ago
        reply Reply

        So if there is no hands on exercise, don't you think 90 minutes will be a little too much for audience to stay focused. The video that you have attached above is of 39 minutes, so do you think making this talk of 45 minutes will be suitable? Thanks!

        • Özlem Yüce
          By Özlem Yüce  ~  8 months ago
          reply Reply

          Hi Deepti, 

          Yes we can make it 45 minutes. 

          • Deepti Jain
            By Deepti Jain  ~  8 months ago
            reply Reply

            Thanks!


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    Building blocks

    The first essential building block is to understand the value. To help structure the conversation we will use a simple economic framework to surface the assumptions and drive to the economic impacts. The second essential building block is to understand the urgency. For this, we will look at different urgency curves to help us understand how value is likely to decay over time. Combining these two gives us the Cost of Delay helping us to question and better understand what our gut tells us about value and urgency.

    Practice makes perfect!

    To get going, we will start by looking at some simplified scenarios that help you put what you’ve learned about Cost of Delay into practice. You’ll work at your own pace through some simple exercises that test different aspects of your understanding. To really embed it, once you’re done you’ll get a chance to help others around you – you become the teacher. We will then quickly reflect on what we’ve learned so far.

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