Then the (relative) CoD is calculated as follows: Figure 3. First, compare backlog items relative to each other using values derived from the modified Fibonacci sequence described in the Story article. Cost of Delay componentsįigure 3 shows the formula for the CoD. Figure 2 illustrates the three primary components of CoD for any particular job. The first task is to get the right stakeholders together and collectively estimate the Cost of Delay relative to other jobs in the backlog. Since there are many ‘jobs to be done’ in the backlog, simply use relative numbers to compare jobs. But Agile teaches us how to quickly estimate on a relative basis. With regard to the numerator, CoD is an estimate at best it’s hard for anyone to know the actual value of a new job (a new feature) that has yet to be delivered to market. In practice, however, both numbers can be extremely difficult to estimate. Applying WSJF for prioritization delivers the best overall economics Estimating the Cost of DelayĪs described above, the calculation of WSJF assumes one can determine the CoD (numerator) in absolute financial terms per unit of time, and the job time can be estimated with some degree of accuracy. As the figure shows, ‘picking the next best job to do’ can have a dramatic financial impact. The jobs with the highest WSJF deliver the best economic outcomes. The shaded areas illustrate the total CoD in each case. If you only quantify one thing, quantify the Cost of Delayįigure 1 shows the impact of applying Reinertsen’s WSJF for prioritizing jobs to be done.
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