The 'Cost of Sacrifice', a holistic approach to agile prioritization and decisioning.

As an agile coach with decades of experience applying the principles of product development flow in multiple industries, I've learned that one of the keys to success is understanding the unique constraints of each industry. In retail, for example, the constraints are often more logistical and financial, with low profit margins driving decision-making. In goat farming, however, the constraints are often more emotional, with the cost of sacrifice playing a crucial role in prioritizing work. As my wife Kimberley and I know firsthand, running both a goat farm and a consulting business can be a balancing act. We have to make trade-offs between the two, and often have to prioritize the goat farm backlog over the consulting business. These trade-offs can be difficult, as we have a strong emotional attachment to our goats and want to make sure they are well taken care of. This is where the cost of sacrifice comes in. By considering the emotional and psychological costs of our decisions, we are able to make more holistic and comprehensive choices that take into account not just the financial bottom line, but also the human factors at play. But how do we actually calculate the cost of sacrifice? It's not as simple as using a formula like WSJF, which is a general algorithm that is particularly useful in flow-based systems where frequent reprioritization is a driver of economic value. Instead, the cost of sacrifice is something that must be considered on a case-by-case basis, taking into account the unique constraints of our goat farm and consulting business. One way we do this is by weighting the different attributes of each decision. For example, if we are deciding whether to sell a particular goat, we might consider its age, breed, and overall health as well as our emotional attachment to it. We then assign a numerical value to each attribute, add them up, and average them to get the cost of sacrifice. This may seem like a subjective approach, but it has proven to be effective for us in making tough decisions. By considering the human factors at play, we are able to make choices that align with our values and goals, rather than just focusing on the financial bottom line. So, if you're a goat farmer (or any other type of business owner) struggling to prioritize your work, consider using the cost of sacrifice as a tool to help make more holistic and compassionate decisions. It may not be as straightforward as WSJF, but it can lead to better outcomes for your business and your team.

An Example of the Cost of Sacrifice

Let me spell this out with a realistic application of these concepts and then summarize what you can do with this. Our business situation in this case is a small family farm and a consulting business (which is not at all like something this author might be familiar with :)...

John: "Hey, honey. I know this is going to be tough, but I really need to go on this consulting trip. It's a big opportunity for the business." MARY: "I understand. But what about Daisy? I don't want to sell her. She's such a special goat." John: "I know, and I don't want to sell her either. But we have to think about the long-term success of the business. This trip has the potential to bring in a lot of new clients." MARY: "I understand. But the emotional cost of selling Daisy is really high for me. It's like losing a family member." John: "I understand that, and I wish there was a way we could have both. But we have to weigh the cost of delay against the potential financial gain of the trip. And we can't forget about the other factors, like finding Daisy a good home and the spiritual benefit of supporting my career goals." MARY: "I see your point. It's just hard to quantify the emotional cost. But I trust your judgment and I know you'll do what's best for the business. Let's do the cost of sacrifice calculation and see where it takes us." John: "Great idea. Let's sit down and go through the variables together. I think it will really help us make a more comprehensive decision."

The Next Day

JOHN sits at the kitchen table, flipping through a travel brochure. KIMBERLEY, his wife, stands at the counter, chopping vegetables for dinner. JOHN: (excitedly) Honey, look at this conference in Paris. It's the perfect opportunity for us to network and grow our consulting business. MARY: (distracted) Mhmm. JOHN: (noticing her lack of enthusiasm) Is everything okay? MARY: (sighs) It's just... I don't know. I have a bad feeling about selling Daisy. JOHN: (gently) I know it's hard, but we have to make sacrifices for the business. And we'll find Daisy a good home. MARY: (tearfully) I know, but she's my favorite goat. And she has such good genes, I was planning on breeding her. JOHN: (puts down the brochure and stands up) Hey, come here. (he wraps his arms around her) We'll figure this out together. Let's sit down and weigh the cost of sacrifice. MARY: (wipes her eyes) Okay. They sit down at the table and pull out their laptops. JOHN: (typing) Alright, so first let's look at the cost of delay for my trip. If I go to this conference, we'll have the opportunity to network with potential clients and potentially bring in more revenue for the business. MARY: (nodding) And on the flip side, if we sell Daisy now, we'll have the capital to invest in new breeding stock and potentially increase profits in the long run. JOHN: (nodding) But let's not forget the emotional cost of sacrifice. Losing Daisy will be hard for you, and it's something we need to consider in our decision. MARY: (tearfully) It's just that she's been with us for so long. It feels like we're abandoning her. JOHN: (gently) I understand. But we have to think about the bigger picture and what's best for both the farm and the consulting business. MARY: (nodding) You're right. It's just hard to let go. JOHN: (puts his arm around her) I know it is. But we can do this together. MARY: (sniffs and nods) Okay. Let's finish weighing the cost of sacrifice and make a decision. They continue to work through the cost of sacrifice, considering the emotional and financial variables in their decision. In the end, they come to a decision that is best for both their personal and professional goals.

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Summary of the Cost of Sacrifice

In the world of business, making decisions is a crucial part of success. It's important to choose the right direction for your company, and to do so, you need a clear understanding of the factors that go into making those decisions. One tool that can be helpful in this process is the WSJF (Weighted Shortest Job First) method.

But as we learned from the farm dialogue, WSJF isn't always enough. Sometimes, there are other factors that need to be considered in addition to the raw numbers. That's where the concept of the "cost of sacrifice" comes in.

The cost of sacrifice is a measure of the emotional and psychological toll that a decision may have on an individual or team. It's about understanding the impact of trade-offs and weighing the pros and cons of different options in a more holistic way.

So, what did we learn about WSJF, the cost of sacrifice, and the principles of product development flow from the farm dialogue? Here are four key takeaways:

1. WSJF is a useful tool, but it's not the only tool. While it can be helpful for prioritizing work and making decisions, it's important to remember that it's just one piece of the puzzle. In some cases, other factors like the cost of sacrifice may be just as important, if not more so.

2. The cost of sacrifice is a real and important consideration. It's not just about the numbers on a spreadsheet - it's about understanding the human impact of our decisions. This is especially important when it comes to trade-offs and difficult choices.

3. The principles of product development flow are a valuable framework for decision-making. By understanding and applying these principles, we can make more informed and effective decisions that consider all of the relevant factors.

4. Communication and collaboration are key. In the farm dialogue, John and Mary were able to make a good decision by working together and considering each other's perspectives. This is a key part of the principles of product development flow and is essential for any business.

Overall, the cost of sacrifice is a valuable concept that can help us make better decisions in business. By considering the emotional and psychological impacts of our choices, we can make more holistic and well-rounded decisions that take into account all of the relevant factors.