Cost of Delay
September 10, 2020
- A 2-min video and some ideas I borrowed re: Cost of Delay.
- Imagine you leave the house 15 minutes late resulting in a 30-minute longer commute, plus you miss an important meeting. That’s cost of delay.
- Delay a project by a quarter you’ve incurred a “cost” of a quarter’s worth of that benefit.
- Miss a market window of opportunity and you’ll incur an even greater penalty.
- But, delay is not just in money. You also need to consider your market share, customer loyalty, and brand as you make tradeoffs.
- If you delay a project and your biggest competitor releases their version, what will that do to your market share?
- On the flip side, rush to market with a buggy product and you’ll negatively impact customer loyalty and, perhaps, overall sales.
- There’s also a “cost” associated with late feedback. What if your hypothesis is incorrect? Wouldn’t you rather have more time to adjust? How many times have you thought “I wish we’d known that sooner!!!”