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Glossary
Prioritization

What is Cost of Delay?

Cost of Delay (CoD) is a prioritization framework that quantifies the economic impact of time on project outcomes. It estimates how much value is lost for every week or month a feature remains unreleased, helping teams move from subjective debate to objective decision-making.

When to use it

Use Cost of Delay when you have several competing priorities and need a rational way to sequence them. It is particularly effective for identifying urgency—the difference between a feature that is valuable now and one that will still be equally valuable in six months. This approach helps prevent high-value but low-urgency projects from blocking time-sensitive opportunities.

Example

Imagine a SaaS company choosing between two updates: a compliance patch required for a new market entry worth $50,000/month and a UX refresh expected to increase total revenue by $60,000/month. While the UX refresh has a higher total value, the market entry has a strict deadline; delaying the compliance patch by one month costs $50,000 in missed revenue. In contrast, the UX refresh value is stable, meaning the team should prioritize the compliance patch first to minimize the total Cost of Delay for the business.

How Planet Roadmap helps with Cost of Delay

Planet Roadmap allows you to build custom prioritization formulas in the Table view, making it easy to calculate Cost of Delay and WSJF scores for every item in your backlog. This data syncs directly to the Kanban board, ensuring your team is always working on the most time-sensitive initiatives.

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FAQ

How does Cost of Delay relate to WSJF?
Weighted Shortest Job First (WSJF) is a calculation where Cost of Delay is divided by the job size or duration. While Cost of Delay identifies the impact of waiting, WSJF helps you determine the most efficient sequence by accounting for how long each task will tie up your team.
Can Cost of Delay be used for non-revenue tasks?
Yes. For infrastructure or internal projects, Cost of Delay can be measured in developer hours lost, maintenance costs of legacy systems, or risk exposure. The key is to use a consistent scale—like relative points or estimated hours—to compare the penalty of waiting across different departments.

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