Lead time

What is lead time?

Lead time measures how long it takes for a request to be fulfilled, starting from the moment of request and ending when the value is delivered to the end user. Originally a lean manufacturing term, lead time is widely used in software and product development and in agile workflows to track how efficiently work moves through a system.

If you choose to use this metric on your scrum team, lead time can reflect the duration from when a product backlog item is created to when it becomes part of a usable increment. Understanding lead time helps teams identify bottlenecks, improve workflow efficiency, and manage stakeholder expectations.

Why is lead time important?

As a team takes steps to shorten or improve their lead time, they are doing so in order to deliver value earlier, respond to customer needs more rapidly, and improve predictability. When lead times are too long, stakeholders and customers can get frustrated waiting for features, especially when priorities change and dependencies cause delays. 

When teams understand their lead time patterns and fluctuations, they can spot problems in their process and tackle those impediments. For example, you may identify that the team's lead time increased along with a cross-team process change, and now they are unable to remain focused on their goals and value delivery as a result. With this knowledge, the team can take steps to enhance their ability to focus.

Factors that impact lead time

Several factors can increase lead time. For example, when a product backlog grows too large, it becomes harder to order, prioritize, and manage work, causing certain backlog items to repeatedly be pushed aside in favor of others. That means a request for a feature, for instance, can sit at the bottom of the long backlog for months before the team can get to it.

Waiting on other teams or external approvals can also slow things down. You may see an improvement in lead time if you nurture the team's cross-functional and decision-making capabilities and reduce dependencies on external groups.

On the other hand, lead time tends to improve when teams work from a well-maintained backlog, limit work in progress, and minimize dependencies. Keeping backlog items clear, small, and ready for development makes it easier to start work without delay. Encouraging regular collaboration with stakeholders can also help reduce rework and clarify priorities early, which helps the team stay focused on delivering the right things at the right time.

Lead time vs. cycle time

Lead time and cycle time measure different parts of the workflow. Lead time tracks the total time from when a request is made to when the feature is released and available in production. Cycle time, on the other hand, measures how long it takes to complete a product backlog item once the team starts working on it—typically from when it's pulled into a sprint to when it meets the Definition of Done. From a customer's perspective, lead time matters most because it represents how long they wait for a feature or product. Cycle time, on the other hand, helps the team understand how efficiently they're completing work once it's in progress.

Frequently asked questions

How can teams reduce lead time?

Teams can shorten lead time by keeping backlog items small and manageable so that work flows more smoothly. Limiting the amount of work in progress at the same time helps prevent bottlenecks and keeps work moving. Reducing dependencies, whether on other teams or external approvals, also minimizes delays. 

Why is lead time important in agile development?

Agile development focuses on delivering value early and often and adapting to change based on feedback. Tracking lead time helps teams understand how efficiently they can turn ideas into working solutions and whether certain impediments to their collaboration are disrupting their lead time. 

Does a high velocity mean a shorter lead time?

Not necessarily. A team can complete many product backlog items quickly (high velocity) but still have long lead times if work sits in the backlog for extended periods before being started.

Should scrum teams track lead time?

Lead time is not a part of the scrum framework, but it is an optional metric that some may find useful to spot delays and improve their workflow. It's especially common in kanban, where teams focus on keeping work moving efficiently and reducing bottlenecks.