Use Cost of Delay to decide which project to start first
Tests if you quantify economic burn rate of sequencing, not raw ROI. Calculate CoD by dividing monthly value by duration: Project B is $5k/mo, Project A is $2.5k/mo, so start B first. Red flag: static NPV or "quick win" logic without computing delay cost.
WHAT IT TESTS: Whether you apply Cost of Delay to sequence work by economic burn rate instead of static ROI. ANSWER OUTLINE: Calculate CoD by dividing monthly value by duration, giving Project A $2.5k/month and Project B $5k/month. Explain that delaying B burns value twice as fast as A, so you start B first to minimize total delay cost, then do A. RED FLAG: Picking Project A because the total savings are larger, or using NPV without modeling how sequencing affects when value is realized.
Read the original → productplan.com
- #cost of delay
- #product strategy
- #prioritization
- #roi
- #sequencing
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