{"id":4560,"date":"2022-10-06T10:00:25","date_gmt":"2022-10-06T08:00:25","guid":{"rendered":"https:\/\/getnave.com\/blog\/?p=4560"},"modified":"2023-03-18T10:45:31","modified_gmt":"2023-03-18T08:45:31","slug":"why-there-is-no-such-thing-an-industry-standard-for-cycle-time","status":"publish","type":"post","link":"https:\/\/getnave.com\/blog\/why-there-is-no-such-thing-an-industry-standard-for-cycle-time\/","title":{"rendered":"There\u2019s No Such Thing as an Industry Standard for Cycle Time and Here is Why"},"content":{"rendered":"
<\/div>\n

Hey there! I\u2019m Sonya Siderova, CEO and founder here at Nave. I help managers and their teams deliver on time and avoid burnout, keeping everyone happier and more motivated for the long haul. Today we\u2019re going to talk about how to (and not to) set your standards when it comes to your cycle time to figure out whether your improvement efforts are paying off.<\/em><\/p>\n

Recently, a client of mine asked me for a \u201cfavor.\u201d<\/p>\n

She wanted to know if I could provide her with some \u201cindustry standards\u201d for her team to compare themselves against.<\/p>\n

She then shared with me a link to a study, showing some benchmark figures. She thought that if she and her team could measure up to a similar standard, it meant they were doing a good job.<\/p>\n

I\u2019ll admit, I was pretty distressed at first when my client told me all this.<\/p>\n

It wasn\u2019t because she had bad intentions.<\/p>\n

I was uncomfortable because, essentially, she was trying to force herself (and her team) to meet unrealistic expectations. She thought she needed to get herself to fit into someone else\u2019s threshold.<\/p>\n

She was buying into the notion that if she and her team weren\u2019t able to reach a certain standard, then they were all somehow falling short.<\/p>\n

This kind of thinking is so not true.<\/p>\n

When it comes to cycle time, there is no such thing as an industry standard.<\/strong> And I\u2019ll tell you why.<\/p>\n

Your business is unique.<\/p>\n

Your clients, your teams, your processes, your strengths, your weaknesses \u2013 each and every one of these things is unique to you and looks different for each and every company out there.<\/p>\n

Why would you compare your results to someone else’s results?<\/p>\n

It\u2019s irrelevant.<\/p>\n

The context is totally different. It\u2019s like comparing your lifestyle to that of a friend just because you\u2019re both the same age.<\/p>\n

Furthermore, it\u2019s disruptive.<\/p>\n

An unrealistic, un-personalized benchmark just sets everyone up for failure.<\/strong> It leads to guilt, frustration, loss of confidence, and all this without your team actually having done anything wrong.<\/p>\n

Last but certainly not least, it\u2019s demotivating. And as I\u2019m sure you know from experience, it\u2019s harder to deliver quality results when your motivation is suffering.<\/p>\n

So, banish the thought from your mind that there\u2019s some sort of a cycle time industry standard. No one has the same business context you do. Period.<\/p>\n

The thing about cycle time is, it\u2019s relative.<\/p>\n

Let\u2019s say your team has an average cycle time<\/a> of 14 days.<\/p>\n

Let\u2019s also say that 3 months earlier, your cycle time was at 49 days. That means that within 3 months, your cycle time has gone down to less than a third of what it was originally<\/strong><\/em>. In that case, I\u2019d say you\u2019re doing fantastic.<\/p>\n

On the other hand, if your average cycle time is at 14 days, but it used to be at only 2-3 days, then you\u2019re probably going through a transformation initiative that\u2019s causing your delivery time to go up.<\/p>\n

Here is the thing, as long as you understand why your cycle time is moving over time, you\u2019re in a good place. You should only be worried if your delivery time is changing and you don\u2019t know why that happens.<\/p>\n

You need perspective<\/em> when you evaluate your cycle time. It won\u2019t make sense otherwise.<\/p>\n

When it comes to measuring your cycle time to see whether your improvement efforts are paying off, the only thing that makes sense is to look back on your own<\/em> data.<\/strong><\/p>\n

If you do need a threshold (and I agree that you do), you need to look to your own past performance \u2013 not someone else\u2019s.<\/p>\n

Look at your previous cycle time 3 months, 6 months into the past and compare it to how you\u2019re doing now. Look at the numbers. How have the trends built over time? Is your cycle time going up? Going down? Staying consistent?<\/p>\n

Those numbers will give you the answer you need. They will tell if you\u2019ve headed in the right direction.<\/p>\n

If you haven\u2019t analyzed your past performance, start now. One of the best ways to track how your cycle time trends have developed is by using a Cycle Time Histogram.<\/a><\/p>\n

\"Cycle<\/a><\/p>\n

Look at your mean<\/strong> cycle time.<\/p>\n

The mean is the average calculation that you are most likely to be familiar with. This involves adding up all of the values and dividing them by the number of instances in the data set.<\/p>\n

Where does the mean cycle time point for the past month? How about the past 3 or 6 months?<\/p>\n

Now, that you\u2019re looking at the past 6 months, what does the cycle time trends look like for you?<\/p>\n

\"Cycle<\/a><\/p>\n

Within just a few moments of looking at your histogram, you\u2019ll get a good idea of which direction you\u2019re going in, and whether it\u2019s the right direction.<\/p>\n

If you haven\u2019t connected your management tool to Nave just yet, now is the time! It will only take a couple of minutes to build your dashboard and analyze your cycle time trends. Try it for free for 14 days (no CC required!)<\/a> \u2192<\/p>\n

<\/div>\n
<\/div>\n

My point is\u2026<\/strong><\/p>\n

If you want to feel successful, you shouldn\u2019t measure yourself against some kind of industry standard. I\u2019d go further and say that you shouldn\u2019t even measure yourself against your own goals.<\/p>\n

Goals are awesome, make no mistake. But goals aren\u2019t something to measure against, they\u2019re something to look toward for the next step.<\/p>\n

After all, how can you measure based on something in the future?<\/p>\n

Goals are great for pushing ourselves forward and achieving new things, but they\u2019re not how we define whether or not we\u2019re successful.<\/p>\n

To determine whether or not you\u2019re successful, you have to measure backwards<\/em>.<\/strong><\/p>\n

Instead of wasting time trying to fit into someone else\u2019s threshold, stop and take a look at your own data. Set your standards by looking backwards into your historical performance.<\/p>\n

Don\u2019t waste your time comparing yourself to some industry benchmarks.<\/p>\n

Don\u2019t measure yourself against someone else\u2019s threshold.<\/p>\n

The only way to reach your true potential is by improving consistently, one step at a time, using your own data as a point of reference.<\/p>\n

Hopefully, you feel a little bit lighter now, knowing that success means progress. If you\u2019re making progress, kudos to you! If not, shake the dust, learn the lesson and move on. As long as you keep moving, you my friend are truly successful!<\/p>\n

If you know someone else who also needs to hear this message, please share it with them. I feel strongly about it and I\u2019d be grateful if you spread the word.<\/p>\n

I hope you enjoyed this week\u2019s piece of managerial goodness. I wish you a wonderful day and I\u2019ll see you next week, same time, same place. Buy for now!<\/p>\n

<\/div>\n
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