Cost of delay

Cost of Delay is "a way of communicating the impact of time on the outcomes we hope to achieve".

It is a tactic that helps communicate and prioritize development decisions by calculating the impact of time on value creation & capture.

Cost of Delay is also useful for making better decisions wherever there is an opportunity to sacrifice time for other key variables of the product.

The CD3 algorithm works by maximising the total value delivered in any given time period by a scarce development capacity.

The accrued interest on the investment for the duration of the delay can have a significant effect on the net returns.