When Everything is Urgent
A Cost-of-Delay Approach to Facility Operations
Facility teams rarely suffer from a shortage of important work. The harder problem is deciding which important work should happen first when competing demands exceed the time and resources available.
Cost of Delay describes how the value of an outcome changes as its delivery is delayed. In economic terms, it is the opportunity cost of waiting. In FM operations, that value may involve operational availability, safety exposure, compliance, asset condition, occupant experience or other outcomes — not only dollars.
Consider two facility failures creating roughly the same operational consequence while unresolved. One requires 30 minutes to restore; the other 10 minutes.
If both impose approximately the same Cost of Delay, the 10-minute repair should generally move first. One source of disruption is eliminated sooner, and attention can then shift to the longer repair.
Now suppose the 30-minute repair supports an operation facing a fixed deadline, after which the consequence of remaining unavailable increases dramatically. The sequence changes.
The work did not become shorter. The consequence of waiting became greater.
That is the basic idea behind Cost of Delay.
Why “high priority” is often not enough
Most facility organizations already classify work as emergency, urgent, high, medium or low. Service-level agreements establish response expectations, while supervisors and frontline personnel make judgment calls as conditions change.
These mechanisms are necessary, but they encounter a familiar problem: too many things become high priority.
Two work orders can both be classified as high while presenting very different decisions. One may require 20 minutes and immediately remove a meaningful operational exposure; another may consume most of a working day but remain relatively stable until tomorrow. Or two tasks may require the same effort while the consequence of delaying one increases sharply each hour.
A priority label communicates importance. It does not always explain the effect of time.
Cost of Delay introduces that missing dimension.
- How important is this work?
- What happens if it waits?
- How much effort is required to produce the outcome?
Considering those questions together provides a more useful basis for sequencing competing work.
An economic idea that extends beyond product development
The underlying concept predates modern Agile practices.
Operations research has examined the economic sequencing of constrained work for decades. Product-development thinkers later applied related principles to deciding which products and capabilities should be delivered first. Product development expert Donald Reinertsen became particularly influential by emphasizing the economic value of time; Lean and Agile product-development practices subsequently brought this reasoning into wider use.
The connection to facility management is direct. A room under repair remains unavailable. A compliance deficiency remains open. A damaged asset continues deteriorating. A failed system continues disrupting operations.
Work in progress is not the same as an operational outcome.
Value is realized when the condition changes. That makes both the consequence of waiting and the effort required to produce the outcome relevant to priority.
What Maersk learned about the cost of waiting
Maersk Line provides a large-scale example of what can happen when the consequence of waiting becomes visible.
In backlog data examined in the 2018 Accelerate State of DevOps Report, just three high-value features represented approximately US$7 million per week in Cost of Delay. The significance was not simply that the work was valuable. It was that leaving valuable work in the queue carried an enormous economic consequence.
Maersk incorporated Cost-of-Delay thinking as part of a broader transformation that also included smaller work items, reduced work in progress, faster feedback and greater decision-making closer to the work. The reported improvements — including shorter time from idea to release and faster benefits realization — therefore cannot be attributed to Cost of Delay alone. The case is useful because it demonstrates how making the economics of waiting explicit can change the way an organization discusses priorities and tradeoffs.
FM organizations may operate at very different economic scales, but the management problem is the same:
The cost of performing work is usually visible. The cost of leaving it in the queue often is not.
Not every cost of delay is easy to monetize
Some forms of delay can be calculated relatively easily. A production line that remains unavailable may have a measurable cost per hour. A hotel room taken out of inventory represents lost revenue. Other consequences are harder to convert into currency but may be just as important.
Commons consequences of delay
|
Dimension |
Example |
|
Operational |
A room, system, production area or piece of equipment remains unavailable — or downstream work cannot proceed. |
|
Financial |
Lost revenue, overtime, rentals, emergency repair premiums or productivity loss. |
|
Safety & Risk |
A hazardous condition or other exposure remains unresolved, increasing potential harm or liability. |
|
Compliance & Audit |
Required work remains incomplete as an inspection, certification or other deadline approaches. |
|
Asset |
A relatively small problem progresses into more extensive damage or failure. |
|
Stakeholder & Reputation |
Employees, patients, tenants, customers or guests continue experiencing disruption, potentially reducing confidence in the facility or organization. |
A cosmetic repair and an unresolved compliance condition can both legitimately belong on the same facility backlog. That does not mean another day of delay affects them equally.
Cost-of-Delay thinking makes that distinction visible.
Time changes priority
Cost of Delay is rarely static.
Consider a corrective action associated with an upcoming audit. Thirty days before the audit, another day of delay may have little practical consequence. Seven days before the audit, the same delay begins consuming contingency. The afternoon before the audit, another day may make completion impossible.
The work itself has not changed. Time has changed its priority.
The same pattern appears throughout facility operations. A slow roof leak during dry weather may initially carry moderate urgency; its Cost of Delay rises sharply if severe weather is expected. An HVAC issue may begin as a comfort concern and escalate as conditions affect operations or sensitive equipment.
Priority therefore should not be treated as a permanent characteristic attached to a work order.
Priority is a function of consequence, time and current conditions.
Estimating Cost of Delay without false precision
FM teams do not need to calculate an exact monetary value for every work order. Relative scoring can be enough.
A practical facility prioritization process can be summarized in three steps (Figure 2): assess the Cost of Delay, estimate the time required and sequence the work accordingly — while reassessing as conditions change.
|
Dimension |
Decision Question |
|
Operational impact |
What service, process or business activity is affected by waiting? |
|
Time criticality |
Does the consequence become materially worse as time passes? |
|
Risk & compliance exposure |
Does delay increase safety, legal, regulatory, audit, environmental, continuity or asset risk? |
|
Stakeholder impact |
Who is affected and how significant is the impact? |
Each dimension might be assessed on a simple relative scale, such as 1 through 5.
The objective is not mathematical precision. It is to replace an unsupported statement such as “this feels more urgent” with a transparent rationale: a fixed deadline is approaching, the consequence increases after tomorrow, another operation is blocked or a small intervention can eliminate significant exposure.
The score is simply a mechanism for structuring judgment.
Building decision-makers at the front line: A Cost-of-Delay framework
The greatest value of a prioritization framework may not be the score itself. It may be what happens when the reasoning behind the score is understood throughout the organization.
Traditional operating models can unintentionally train frontline personnel to think narrowly: “What is my task?”
That question is necessary, but insufficient.
High-performing organizations also help employees understand: “What outcome is the team trying to achieve?”
Figure 3 illustrates how shared prioritization frameworks can help move an organization from task execution to operational ownership.
That distinction changes behavior.
In Agile product development, individual work does not exist in isolation. A broader team objective provides context for deciding what matters when circumstances change. A planned item may be important but mechanically completing it should not become more important than achieving the collective outcome it was intended to support.
FM operations benefit from the same principle.
A technician who understands only the assigned work order may execute it exactly as written after conditions have changed. One who understands the operational objective can recognize when a new deadline, dependency, risk, access constraint or business need should trigger reassessment. The same applies to cleaners, engineers, porters, maintenance personnel and service partners.
Consider the difference between two directions:
Complete Work Orders 17, 18 and 19 in that order.
Restore the customer-facing areas before opening, eliminate conditions requiring immediate escalation, and sequence the remaining work to best protect the operating objective.
The first communicates tasks. The second communicates intent.
When frontline personnel understand intent, they are better equipped to respond when the plan encounters reality.
Employees become capable not only of executing tasks, but of recognizing tradeoffs, understanding dependencies, identifying changing risk, communicating constraints and making appropriate decisions within defined boundaries.
This is not the removal of management oversight or unrestricted authority. It is a form of distributed judgment.
Management establishes the goals, standards, constraints and decision principles. Frontline personnel are given enough operational context to interpret changing conditions through that shared framework, together with clear triggers for escalation.
Cost of Delay can become part of that shared decision language. Rather than simply telling an employee that one work order precedes another, the organization can explain why: a deadline is approaching, an operation is blocked, an exposure is increasing or a small intervention can unlock disproportionate value.
Over time, employees begin recognizing those patterns independently. Problems surface faster, information moves upward earlier, and decisions made close to the work align more closely with the objectives of the facility operation.
The result is a shift from task execution to operational ownership.
The strongest prioritization systems do more than rank work. They teach people throughout the organization how to recognize what matters — and why.
Some work should bypass the framework
Cost of Delay should not become a scoring exercise used to negotiate away mandatory requirements. Immediate life-safety conditions, emergency response, mandatory regulatory actions, critical infection-control or sanitation requirements, environmental releases, required shutdown conditions, statutory deadlines and other nondiscretionary controls should continue to follow established organizational protocols.
The framework supports professional judgment. It does not replace mandatory controls.
Recurring deferrals are data
What repeatedly loses the prioritization contest can be as informative as what gets completed.
If preventive maintenance is routinely deferred, asset reliability may be creating excessive reactive demand. If audit preparation repeatedly requires emergency effort, compliance activities may be entering the queue too late. If one area is consistently postponed because operations cannot provide access, scheduling may be the real constraint.
At that point, the question changes from: “What should be prioritized today?” to: “Why does the operating model keep forcing the same tradeoff?”
Repeated deferral becomes operational data. The answer may point toward staffing, asset strategy, service design, procurement, scope, scheduling, access, outsourcing or capital investment.
Cost of Delay can therefore do more than improve the order of a work queue. It can expose where the facility operating model itself needs attention.
From intuition to structured prioritization
FM will always require professional judgment. Buildings are dynamic, information is incomplete and conditions change. Legal exposure cannot always be translated into precise monetary value, nor occupant experience into a score.
The objective is not to replace judgment with an equation. It is to make judgment more structured, transparent and repeatable.
Cost-of-Delay thinking asks three straightforward questions:
- What does waiting cost?
- How much time or effort is required to resolve the condition?
- Has anything changed that should alter the sequence?
Those questions help distinguish work that is important from work whose consequence of delay is increasing most rapidly.
A structured approach does more than improve the sequence of work. When the reasoning is shared throughout the organization, it develops personnel who understand the objective behind their assignments, recognize when circumstances have changed, and exercise better judgment at the point where work actually occurs.
The result is not merely better prioritization, but greater operational ownership.
When everything is urgent, the answer is not to treat everything equally. It is to understand what waiting costs — and act accordingly.
Delbert Kim is a facility operations executive focused on operating-model design, frontline empowerment, service quality and scalable execution. He serves as chief operations officer at Getty Team. His background includes leading enterprise transformation initiatives through an independent management consulting practice and at PwC for Fortune 500 organizations across health care, retail and consumer products. His work centers on translating strategy into consistent execution at the point of service and aligning facility operations with broader organizational priorities.
References
DORA. 2018 Accelerate State of DevOps Report. View report
Emergn. Maersk Line case study. View case study
Reinertsen, Donald G. The Principles of Product Development Flow: Second Generation Lean Product Development. Celeritas Publishing, 2009.
Top image via Getty Images.
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