What is cost of delay?
Cost of delay turns "this is urgent" into something a team can compare. Here's what it means and how it feeds into WSJF.
Updated
Definition
Cost of delay is the value you lose by not delivering something now. In WSJF it's estimated as user-business value plus time criticality plus risk reduction or opportunity enablement, then divided by job size.
What it is in practice
Every piece of work you don't ship yet has a price: customers who wait, a deadline that passes, a risk that stays open, or other work that can't start. Cost of delay asks the team to make that price visible, so urgency is argued with reasons instead of volume.
Some teams estimate it in money per week. Most teams, especially those using WSJF, score it relatively instead. They rate each item on user-business value, time criticality, and risk reduction or opportunity enablement, and add the three together. Dividing by job size gives the WSJF score, which favours work that is expensive to delay and cheap to deliver.
The three parts matter because they catch different kinds of urgency. Something can be modest in value but have a hard deadline, or unlock a whole stream of other work.
An example from Pulse Analytics
In the Meridian Labs demo, Journey Platform's activation reporting needs published metric definitions from Pulse Analytics. On its own, publishing definitions looks like modest value. But delaying it holds up another team, so it scores high on opportunity enablement, and its cost of delay is higher than it first appears. Writing that down makes the case without anyone having to escalate.
Common mistakes
- Counting only value and ignoring time criticality, so deadline-driven work is always late.
- Forgetting work that unblocks other teams, which is where cost of delay is often highest.
- Scoring every item as urgent. If everything scores 20, the scale tells you nothing.
- Using cost of delay without job size, which favours big items that take a long time to deliver.
How Ondule handles this
Ondule doesn't calculate cost of delay inside the app. Score it in the free WSJF calculator, and track the cross-team dependencies that drive it in Ondule's dependency register.
Questions
- How do you calculate cost of delay in WSJF?
- Add the scores for user-business value, time criticality, and risk reduction or opportunity enablement.
- Is cost of delay measured in money?
- It can be, as value lost per week. Most WSJF teams use relative scores instead, because they are quicker to agree.
- Why divide cost of delay by job size?
- So that small items that are expensive to delay go first. It rewards splitting large work into smaller pieces.
