I cover Cost of Delay and CD3 (Cost of Delay Divided by Duration) in my Essential Agile Product Leadership course. (CD3 being similar to WSJF). This part of the course is derived from from the work of Joshua J. Arnold, with Mike Cohn's business modeling "dimensions" (may be my term) as a starting point in the thinking process.
PurposeThe dimension of Purpose is the selection of why we are building what we are building:
- New: New customers, new markets, improved cash flow.
- Upsell: Upgrades and enhancements for existing customers.
- Retention: Avoids losing customers or cash flow.
- Efficiency: Saves money while enhancing growth.
- Reputation: Improves our standing in the market, e.g., feature-parity, repairing defects. (I may have added this one...)
NecessityThe dimension of Necessity is a rough model of how we see this feature improving value:
- Mandatory: A Minimal Marketable Feature (MMF).
- Linear: Adds nominal value to the MMFs.
- Exciter: Will create enthusiasm and joy in the user community.
ProcessLastly, the dimension of Process, which may have been added by me as a catch-all for remaining things from Mike's set, or so I could add topics that I think folks should consider when exploring their Cost-of-Delay and Duration estimates:
- Cycle Time: Time it takes between receiving a request and delivery (or use) of the feature.
- Waste: Things we do that may not provide value. E.g. re-work due to defects.
- Risk: Things we may or may not be doing that will result in a loss of value.
- Operational expenses: Keeping the lights on, and many others.
- Cost of Delay: What it obviously costs to wait, i.e. lost opportunity. (See below.)
- Complexity: Keeping it smartly simple.
Cost of Delay
The dimensions give leaders some starting points to think about as they come up with their cost-of-delay estimates, and helps them identify other folks to talk to--and what to ask them--in order to uncover other time and hidden cost estimates. "CD3 is cross-functional!" I say. At least as cross-functional as the best DevOps-embracing Scrum team.