How do you prioritize work in your Kanban system using the Cost of Delay metric?

We need to calculate Cost of Delay for each item by estimating value and impact of delay. New items are prioritized by comparing CoD. Work on highest CoD items first while minding WIP limits. Watch for blocking issues that could delay value delivery and expedite. Regularly revisit and update CoD as new info comes in, re-prioritizing as needed. Visualize CoD on cards with color coding or numbers. In standups, identify high CoD items to potentially expedite. If delays occur, recheck if CoD should increase. Re-run CoD calculations during planning to validate priority order. Use CoD data to support expediting actions like reallocating resources. The goal is to continuously optimize priority to maximize value delivery across the workflow.

Take the priorities, define the priorities, check the scope at the time of taking ahead and raise the flag for any impediment that will help to share early with stakeholders and PO makes the things thinline. Delay in sharing any blockers or impediments with stakeholders may also impact cost as well as trust mechanism..

An Ideal Process should start with listing down the priorities, articulate them clearly, assess the scope before proceeding, and promptly signal any obstacles. This proactive approach aids in early communication with stakeholders and the Product Owner, streamlining processes. Failing to promptly communicate blockers or impediments could potentially impact both costs and the trust framework.

In our Kanban system, we prioritize work by assessing the 'Cost of Delay' for each item. We evaluate how much value or revenue we might lose for every day a task is postponed, ensuring that the most time-sensitive and impactful work takes precedence. This approach aligns our workflow with business priorities, driving efficiency and profitability.

Define Cost of Delay as a concept that quantifies the economic impact of delaying the delivery of a specific work item. It includes factors such as lost revenue, increased expenses, missed opportunities, and customer dissatisfaction.

Explain the factors involved in calculating Cost of Delay, which may include revenue impact, time sensitivity, market competition, and customer value. Formulas like CoD = (Value + Time Sensitivity + Risk Reduction) / Duration can be introduced.

SAFe's formula for Cost of Delay, while popular and easy to work with, has several drawbacks. Most prominently, all the proxy numbers SAFe uses still rely on sentiment and gut feel -- exactly what CoD is supposed to correct for. So let's learn how to create a real Cost of Delay. Create a simple Profit-and-Loss spreadsheet with sales projections over the life of the product. Compare those baseline projections to similar projections for a certain delay. For instance, a delay of six months means we're still carrying engineering costs while making no profit. Also, we may simply sell less if a competitor beats us to market. Reinertsen shows a good example of how to do this in chapter two of "Developing Products in Half the Time."

Calculate Cost of Delay by multiplying the time value of a delay (per unit of time) by the duration of the delay. The formula is: Cost of Delay = Time Value × Delay Duration. Time value can be revenue, customer satisfaction, or any metric relevant to your business objectives.

???? While the fundamentals behind the Cost of Delay ?? and using it for prioritization are solid, particular calculations could be very tricky. That's why in the Kanban Method ?? we use Classes of Service (CoS) ???, which are inherently linked to the associated cost of delay patterns. When working with CoS, it’s crucial to leverage these patterns. ?? Straightforward use it – selection of work elements – deciding which items to start now, defer, or discard. Connecting CoS to the cost of delay drives effective work prioritization and policymaking so that work flows smoothly. ???

We calculate it by combining the value and urgency of each task, enabling us to assign a clear priority order. Tasks with higher values and greater urgency naturally rise to the top, ensuring we tackle the most impactful work first. This method aligns our Kanban workflow with business goals, optimizing our efficiency and delivering value sooner.

There are already quite standard classes of service in Kanban, which are based on Cost of Delay. Expedite - the later we do the more value we lose and it can be exponential value loss. Fixed date - loss of value or cost of delay increases rapidly after the fixed date, while stays low before it. Regular - cost of delay here is usually linear, growing steadily over time and even plateuing. Intangible - it can vary based on the nature of work, but it means unpredictable. You can see a sky rocketing Cost of Delay out of the blue with such items.

Outline the steps for prioritizing work using Cost of Delay: Calculate the Cost of Delay for each work item. Classify work items based on urgency and value. Create a visual representation of priorities on the Kanban board. Regularly review and update priorities based on changes in the organization or market conditions.

Prioritize work by focusing on tasks with the highest Cost of Delay. Rank tasks based on their financial impact if delayed. This ensures that resources are allocated to activities that contribute the most to the organization's goals, optimizing overall value delivery.

In our Kanban system, we leverage the 'Cost of Delay' metric to make informed decisions about work prioritization. By assessing the value and urgency of each task, we calculate its Cost of Delay. This helps us identify which tasks have the highest impact and should be prioritized first. Tasks with a higher Cost of Delay are given precedence, ensuring that we focus on work that delivers the most value to our business and customers.

Leveraging the Cost of Delay to prioritize work involves assessing the potential financial impact of delaying different features or tasks. Teams calculate the Cost of Delay for each item by estimating the expected value gained per unit of time. By comparing these costs, teams can prioritize tasks with higher Costs of Delay, ensuring that work with the most significant economic impact is addressed first. This approach aligns with Agile principles of delivering maximum value quickly, allowing teams to focus on features that contribute most significantly to project success & customer satisfaction. By using the COD into prioritization decisions, Agile teams can optimize their workflow & enhance the overall economic outcomes of their projects.

No need to make it fancy, just have different swimlanes for different classes of service. It will already define priorities among different types of work. It will also serve as a documentation. Easiest example is to investigate support SLA's as such swimlanes. Critical issues will be up top, while low severity will be at the bottom. With deadline based ones somewhere in between.

Discuss techniques for visualizing Cost of Delay on the Kanban board: Use different colors, tags, or columns to represent urgency and value. Implement Cumulative Flow Diagrams (CFDs) to track the flow of work items through different stages. Leverage visual indicators to highlight high-priority items.

Visualize Cost of Delay by incorporating it into your Kanban board. Use color-coded cards or markers to represent different levels of urgency. Arrange tasks on the board according to their Cost of Delay, making it easy for the team to see and act on high-priority items.

High-priority work items are marked in red, medium in yellow, and low in green. Additionally, we employ labels and icons to represent the value and urgency of each item. This visual approach allows us to instantly identify the most critical tasks, ensuring they receive immediate attention. We also maintain a dynamic chart or table that displays the Cost of Delay, value, urgency, and priority, helping us make informed decisions and stay aligned with our project goals.

O padr?o seria segregar raias por classe de servi?o em seu quadro Kanban e adotar uma limita??o mais pesada na classe "Urgente" (sugest?o); Fora isso, existem gráficos-padr?o para cada classe (aonde a visualiza??o do impacto do custo do atraso fica bem evidente).

Prioritize your Kanban backlog like a pro! Use Cost of Delay to weigh value and urgency. Leverage data, research, and customer feedback, but don't shy away from relative sizing. Embrace uncertainty with ranges and confidence levels, update as you learn. Experiment, prototype, and measure impact to refine your estimations. Feedback is king – use it to close the loop and prioritize like a Cost of Delay champion!

Provide tips for enhancing the accuracy of Cost of Delay estimates: Collaborate with stakeholders to gather accurate data. Continuously refine estimation processes based on feedback and results. Learn from past projects to improve future estimation accuracy.

Refine Cost of Delay estimation by involving stakeholders and gathering diverse perspectives. Regularly review and update time value metrics. Use historical data to enhance accuracy. Continuous feedback loops help improve the team's ability to estimate and understand the true Cost of Delay.

We rely on historical data and market research to estimate value and urgency. Validating assumptions with customers and stakeholders ensures alignment. We use techniques like t-shirt sizes and Fibonacci numbers to compare work items. Using a range or confidence level allows flexibility as we gather more information.

Improving Cost of Delay estimation in Agile methodology involves refining the accuracy of financial impact assessments for delayed features. Begin by enhancing communication and collaboration with stakeholders to gather comprehensive data on potential value. Utilize techniques like Monte Carlo simulations to account for uncertainties & variability in estimates. Encouraging a culture of transparency & continuous learning within the Agile team also facilitates ongoing refinement of estimation practices. By combining data-driven approaches, stakeholder insights, and a commitment to continuous improvement, Agile teams can enhance the precision of their Cost of Delay estimations, resulting in more effective prioritization and decision-making.

The proper way to do Cost of Delay prioritization is to use "Cost of Delay Divided by Duration" also known as CD3. However there is another method that is in principle very similar, but delivers much better financial performance than CD3. It is using the "Financial Throughput Rate" (also known as "Throughput Octane"). The calculation is still a ratio as in CD3, only that the denominator is not the duration across the process, but it is the duration specifically on the CONSTRAINT of your process. To be able to do prioritization according to Financial Throughput Rate you must be able to identify the Constraint of your process. The only method that helps you with that in any collaborative knowledge work setting, is my TameFlow Approach.

In my experience, work can be prioritized considering the cost of delay and the time the team would take to deliver value or benefit to the end user with the help of WSJF( Weighted Short Job Size First). The cost of delay accounts for the business value for end users, how critical the requirement is considering time and lastly the risk it might have. By using WSJF prioritisation method, we were able to conclude on the priority for the customer and had been beneficial throughout.

Discuss additional considerations related to Cost of Delay: Balancing multiple priorities and considering other factors like customer feedback and team capacity. Educating the team on the importance of Cost of Delay and fostering a shared understanding. Experimenting with different prioritization strategies and continuously learning from the outcomes. Involving stakeholders in the prioritization process to ensure alignment with business goals. Recognizing that Cost of Delay is dynamic, and priorities may need to be adjusted regularly.

The idea to use cost of delay metric is to quantify work by clear value loss by delays. The teams know financial consequences of such delays. To prioritise: Classify the work items based on completion urgency. Estimate value lost per delay period and mark high cost of delay items to expedite. Discuss and refine those estimates before prioritizing swimlanes. Keep validating actual impacts and improvise.

Consider the interplay between Cost of Delay and other metrics. Balance urgency with capacity and dependencies. Regularly reassess priorities as business objectives evolve. Foster a culture of collaboration to ensure the entire team understands and aligns with the principles of prioritizing based on Cost of Delay.