Overview
Cost of Delay (CoD) is a method of prioritization based on amount of revenue lost if an initiative is delayed.
This method directly ties quality of prioritization to a company's financial bottom line. CoD analyses are expected of product teams working under tight budgets.
By using CoD analysis, product teams can stop guessing whether an item/initiative is important or not, and directly address the value via financial terms.
Great PMs should know that CoD analysis is not necessarily an objective means of prioritizing, and should use various prioritization frameworks depending on the type of product team, type of company, and present objectives.
