Glossary
Lead time is the total elapsed time from when work is requested or initiated until it is delivered to the customer or end user.
Lead time is the total elapsed time from when work is requested or initiated until it is delivered to the customer or end user.
In software development, lead time measures the complete timeline from idea to deployment. It includes every step: requesting the feature, discussing it, prioritizing it, waiting in the backlog, developing it, reviewing it, testing it, and deploying it.
Lead time is broader and longer than cycle time. While cycle time only counts the time actively spent working, lead time counts everything - including waiting, meetings, reviews, and blocked periods.
The basic formula is simple:
Lead Time = End Date - Start Date
More specifically:
Lead Time = (Time Work Delivered) - (Time Work Requested)
For tracking trends, teams often calculate average lead time:
Average Lead Time = Total Time for All Completed Work / Number of Completed Items
For example: If ten features were requested over the course of a month and took an average of two weeks each to ship, your average lead time is two weeks.
This is the question everyone asks. They sound similar, but they measure fundamentally different things. Here's the clearest way to think about them:
| Aspect | Cycle Time | Lead Time |
|---|---|---|
| Starts when | Active work begins | Work is requested |
| Ends when | Work is ready for delivery | Work is delivered |
| Includes | Only active work time | Everything: waiting, working, reviewing, deploying |
| Waiting time | Excluded | Included |
| Typical length | Shorter (days) | Longer (weeks) |
| What it measures | Development speed | Process speed |
| Tells you about | How fast your team codes | How fast your system delivers value |
Here's a concrete example:
A product manager requests a new feature on January 1st. It's not important, so it sits in the backlog for three weeks. On January 21st, an engineer picks it up and starts working. She finishes on January 24th. The feature is deployed on January 25th.
Notice: the cycle time is short (3 days), but the lead time is long (25 days). The team is fast at coding, but the system is slow at delivering features.
For engineering teams focused on code quality and speed - cycle time matters more. It tells you if your development process is efficient.
For product teams and business leaders focused on shipping value - lead time matters more. It tells you how fast you can respond to market needs.
In practice, both matter. A good system has both short cycle times (fast development) and short lead times (fast delivery).
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