Weighted Lead Time is a metric that allows an organisation to measure how long it takes on average from investment to return. In financial markets a similar metric called Duration is used as a measure of the riskiness of an investment. The longer the time from investment to return, the riskier the investment.
Weighted Lead Time is a compliment to Lead Time which is typically used to measure a team’s effectiveness.
Weighted Lead Time can be scaled to the organisational level, and can also be used to drill down to the team level. Lead time cannot be scaled to the organisational level. Lead time requires you to pick a start and end point in the process. Weighted Lead Time only requires the specification of the end point. i.e. When the return starts.
The following posts discuss Weighted Lead Time.
- Implementing Weighted Lead Time
- Gaming Weighted Lead Time
- Why you do not need to consider interest rates or the time value of money.
- An early description of weighted lead time.
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