How to calculate the Cost of Delay - Lean Agile (18:47 min)

This video shows the steps to calculate the Cost of Delay and develop your own model. We have a template available on our website here:

First of all, it's critical to know the cost of delaying your product launch. I promise you it will change everyone’s perspective. And it’s not that hard.

There are dozens of possible topics for lean or agile so I had to figure out the best place to start. So I decided to focus on what’s most important in terms of business impact, and that happens to be Lost Profit from delays in New Product development, otherwise known as the Cost of Delay.

Team members don’t often think of it, but one of the most important goals in terms of a new product is the overall profit that the product makes in the long run.

After all, financial performance was probably the biggest factor in getting the project approved in the first place, so it’s going to be something that’s closely tracked by management in the end.

And there’s a really good reason for this.