The Hidden Factory is everything your group does over again because it didn't go right the first time around.
This ranges from re-doing a failed multi-year project, to re-pushing a production release which had some minor issues the first time around. Sometimes these activities are called "Fire Fighting."
Most groups I talk to tell me that about 35% of their teams efforts are lost to this problem.
Someone must pay for this, and it's very expensive. Higher prices, lower wages, and lower shareholder dividends are one way to quantify the hidden factory. In addition, the opportunity cost of not being able to reach your project monetization goals 33% faster means you left money and customers on the table.
The Stable Framework™ is a performance management framework for IT designed to give IT departments the tools needed to tame this wild Hidden Factory beast and bring the fire-fighting down to nearly zero, where it should be.
Read more about it here