In 30 seconds
- Active time divided by total lead time.
- Many teams find work waits most of the time.
- Improve it by cutting waits, not by working faster.
How it's calculated
Flow efficiency = active work time / total lead time x 100
An item worked on for 2 days that took 10 days end to end has 20% flow efficiency.
What teams usually find
When teams first measure it, flow efficiency is often low: work spends far more time waiting for reviews, approvals, testing or handoffs than being worked on. Value stream mapping shows exactly where.
Improving it
- Lower WIP limits so items don't queue
- Reduce handoffs with cross-functional teams
- Automate approvals and testing where possible
- Swarm on stuck items
Myth vs reality
Myth · Low flow efficiency means people are slow.
Reality · It means work is waiting.
Myth · 100% is the goal.
Reality · Some waiting is normal; aim to improve the trend.
Myth · Working harder improves it.
Reality · Cutting wait time does.
FAQ
How do we measure active time?
Track when items are in active versus waiting states on the board.
Is this the same as resource utilization?
No; high utilization often lowers flow efficiency.
Which waits should we tackle first?
The longest ones on the value stream map.