How does a team measure the cost of delay effectively?

Measuring the cost of delay effectively often involves observing wait times and identifying bottlenecks in the workflow. This method provides crucial insights into how delays impact the overall delivery of value to customers. By tracking where work gets stuck or experiences delays, teams can quantify the effects of these holdups in a way that directly relates to lost value or opportunities. This approach helps the team prioritize work more effectively, allocate resources optimally, and streamline processes to reduce wait times, ultimately improving the delivery of products or services.

While cost assessment, feedback loops, and individual performance tracking can provide valuable information, they do not directly capture the immediacy and impact of delays in the workflow. Observing wait times and bottlenecks specifically focuses on the operational aspects of the team's processes, making it the most effective method for measuring the cost of delay.