Velocity is undoubtedly the most common metric used by agile teams.
Teams use it to plan sprints or iterations and predict future delivery dates.
In this video, we'll explore what velocity is, how it's calculated, the benefits of using it, and some best practices.
Velocity measures the amount of work completed by an Agile or Scrum team in a sprint.
It's measured in the same unit a team uses to estimate its product backlog items, whether that's a number of story points finished per iteration,
or the ideal days, person days or any other unit.
Calculating velocity is straightforward.
Add up the estimates assigned to each product backlog item that has been completed during the sprinter iteration.
For example, if a team completes five backlog items in a sprint and they're estimated at 3, 5, 2, 4, and 1 points, the velocity for that sprint would be 15. Naturally,
calculating velocity requires that each backlog item be estimated.
This should be done anyway before work begins on a product backlog.
The estimates can then be used for prioritizing and planning work.
An item must meet the team's definition of done to be included in the velocity calculation.The team gets no partial credit if a backlog is not done.This
is to help you avoid overstating a team progress.
Measuring and using velocity benefits an agile team in a number of ways.
Many teams plan their sprints using their historical average velocity.
The amount of work a team will complete in its next sprint should be close to its average.
This is known as the principle of yesterday's weather.
More formally, it's called a martingale sequence.
Velocity can also be used planning further ahead than the next sprint.
Using its average velocity, a team can provide a rough estimate of how much it can deliver in any given number of future sprints.
In doing this, it's wise to use a velocity range rather than a single value.
For example, if a team's average velocity is 20, it would be safer and more accurate to use a velocity range such as 16 to 23. Using this velocity-range,
a Team could forecast that in five sprints, they will deliver between 80 and 105 units of work.
As the end of a sprint approaches, team members focus on finishing items that might fall short of meeting the definition of done.
This can lead to a greater sense of team accountability.
When team member see their velocity increase, it can motivate them to maintain or improve performance.
Conversely, a decrease in velocity can prompt discussions on potential issues or areas for improvement.
Velocity serves as a critical communication tool for agile teams, providing stakeholders with concrete data on project progress.
It allows for transparency and fosters trust because stakeholders can see realistic expectations for delivery based on the team's actual performance.
I want to share a few best practices for using Velosity.
Number one, consistency is key.
To ensure that velocity remains a helpful metric, use a consistent method for estimating product backlog items.
If a team changes its estimation units, for example, from ideal days to story points, past velocity data should be invalidated.
Number two, avoid over-emphasizing velocity.
Although velocity is an important metric, a team's primary aim is to deliver meaningful products or features.
Over- emphasising velocity can result in teams compromising on quality or resorting to excess overtime.
And while overtime can provide a temporary boost in velocity, relying on it continuously leads to product defects and employee burnout.
Number three, expect variation in a team's velocity.
Teams, and especially management, should expect fluctuations in velocity due to various factors, such as team member availability,
imprecise estimates, external dependencies.
I've learned by analyzing data from over 100 teams that you should anticipate velocity varying across a plus or minus 20% range.
A team averaging 20 may have a velocity anywhere from 16 to 24 in the next sprint.
Those values are not bad or good news, they're simply random variations.
Understanding this variability can help in making necessary adjustments when planning.
Velocity is a fundamental metric that helps teams improve their planning and communicate effectively with stakeholders.
By understanding and leveraging velocity, agile teams can enhance their productivity, maintain transparency, and ultimately deliver better value to their
stakeholders