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      Cost Of Delay – Prioritising product features

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      • Cost Of Delay – Prioritising product features
      March 15, 2018
      Calculate your Cost Of Delay to get relevant data

      Product Managers, Product Owners or Innovators are not to be envied. Any stakeholder usually have a strong opinion about what is most important for the product. In meetings to discuss those priorities, several stakeholders are usually pulling innovators, such as the product owners, between opinions of different persona. In the end they do not really know, what actually is the most important to achieve. They rather follow the most urging or even the loudest individual. Cost of Delay might a way out of this mysery.

      In God we trust all others must bring data! — Edward J. Demming

      As soon as we connect data to any of our decisions, stakeholders or bosses understand your priorities easily. I always suggest Innovators to connect their priorities with any form of feasible data.

      The easiest metrics are also usually the metrics we call to be vanity. Reduced Churn, More Signups, Increased MRR, more website hits, etc – We misread those very easy. With those metrics, though, you would maybe not get all stakeholders on board. Stakeholders in top management positions have one common interest: How can we grow our business faster?

      Return on Investment vs. cost of Delay

      In the past, people were interested in the so called Return Of Investment. They were taking a risk by investing into a feature and then would see how much of this investment would return in profits. But this approach has one flaw: It only gives you exact information after the investment is already done.

      Cost of Delay helps you to understand how much revenue you lose with every week you do not invest into a specific feature. If calculated correctly and congruent, it might be the ideal prioritisation technique. Leading Agile explains with nice examples, how to calculate Cost of Delay.

      One of the most powerful ideas of Cost Of Delay is to match a potential generated value just with a perceived value of a story. It is a way of creating a priority based on what we assume and on real, feasible data.

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      Chris Kruppa
      Chris Kruppa
      Chris is a German working in Vietnam since 2008. He became passionate on Agile, when he started to implement Agile into his Marketing team about 2010. He immediately saw the impact of cross-functional and transparent teams and became a CSM in 2011. He founded semdi solutions end of 2012 with the goal to coach teams on how to be more adaptive and ready for the 21st century. Since then he has worked with nearly 20 organizations in Southeast Asia and supported them in increasingly becoming more Agile.

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