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.

 
 

Outline/Structure of the Talk

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 3 years ago

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      Don Reinertsen says that if you only quantify one thing, quantify the Cost of Delay. As we’ve talked about before, quantifying Cost of Delay not only helps improve prioritisation, it also help with making trade-off decisions, creates a sense of urgency, and changes the focus of the conversation. Maybe this has got you interested in experimenting with it, but you’re not sure how to get started? If so, this workshop is specifically for you!

      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! We will show you how to get started with using Cost of Delay, despite these doubts.

      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!

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