How is "Cost of Delay" calculated in SAFe?

In the Scaled Agile Framework (SAFe), "Cost of Delay" is a crucial metric used to understand the economic impact of delays in delivering features or projects. It specifically quantifies the potential loss in value that occurs when delivery is postponed. The concept emphasizes that time is a critical factor in achieving business objectives and maximizing value.

By calculating the Cost of Delay, teams can prioritize their work more effectively, ensuring that they focus on the features or projects that will deliver the highest value to the business if they are completed sooner rather than later. This understanding aids in making informed decisions about prioritization and resource allocation, ultimately driving better outcomes and maximizing return on investment.

In contrast, evaluating resource consumption, assessing team morale, or analyzing customer feedback, while important in their own right, do not directly relate to the concept of Cost of Delay, which specifically captures the economic implications of postponing work.