What is lead time?

Lead time is the total amount of time it takes to complete a process, from the moment it begins to its conclusion. In software development, lead time includes every step from receiving a feature request to delivering it to production, such as design, coding, testing, and deployment.

Lead time is an important metric because it provides a clear picture of how efficiently a team or system operates. Reducing lead time can lead to faster deliveries, improved customer satisfaction, and better overall workflow management.

Lead time is calculated by subtracting the start date of a process from its end date. The formula is straightforward:

In software development, tools like Kanban boards measure lead time by tracking the time a task spends in different workflow stages. Accurate measurement requires clear definitions of when the process starts and ends. Tools like Jira or Trello often automate this calculation for project management teams.

Imagine a software development team receives a feature request on January 1st.

1. The team begins planning and development on January 5th
2. Completes the coding phase by January 20th
3. Finishes testing and deployment on January 25th

The total lead time is calculated from the date the request was received to the date the feature was delivered. 

Using the formula above, the lead time in this example is January 25th – January 1st = 24 days. This measurement reflects the entire process from initiation to completion, helping the team evaluate their efficiency.

Lead time in project management is crucial for assessing team efficiency and optimizing workflows. It helps businesses:

• Identifies bottlenecks
• Improves delivery timelines
• Enhances customer satisfaction
• Supports informed decision-making
• Enables faster feedback loops

By monitoring lead time, teams can optimize their planning and decision-making processes through data-driven insights into process performance. In agile environments, reducing lead time supports faster feedback loops and iterative improvements.