What is Velocity in Agile?

Velocity is a key metric in Agile project management that measures the amount of work a Scrum team can complete in a Sprint. It helps teams predict how much work they can handle in future Sprints, enabling better planning and forecasting.

Velocity is typically measured in story points, ideal days, or any unit the team uses to estimate effort.

How to Calculate Velocity?

Velocity is calculated as the sum of completed story points at the end of each Sprint. The formula is:

Velocity = ∑(Completed Story Points per Sprint)

Example Scenario:

A Scrum team is working in 2-week Sprints and uses story points to estimate user stories.

Velocity Calculation:

Velocity = (20+25+23) / 3 = 68/3 = 22.67

So, the team's average velocity is approximately 23 story points per Sprint.

How is Velocity Used?

1️⃣ Sprint Planning

If the team's Velocity = 23 and the backlog contains the following user stories:

The team can realistically commit to stories totaling up to 23 points in the next Sprint.

2️⃣ Release Planning & Forecasting

If the product backlog has 115 story points remaining, and the team’s velocity is 23 points per Sprint, the estimated number of Sprints required to complete the work is:

115 / 23 = 5 Sprints

So, it will take approximately 5 Sprints (or 10 weeks in a 2-week Sprint cycle) to complete the project.

Key Points About Velocity

✔ Velocity is team-specific – Different teams have different velocities based on experience, skill level, and complexity of work.
✔ Velocity stabilizes over time – A new team may have fluctuating velocity initially, but it stabilizes after 3-5 Sprints.
✔ Only completed stories count – Partially completed stories do not contribute to velocity.
✔ Velocity helps in long-term planning – It helps predict project timelines and set realistic deadlines.

Common Mistakes & Misconceptions

❌ Using Velocity to compare teams – Each team has its own scale for estimating work, so comparing their velocities is inaccurate.
❌ Focusing on increasing velocity artificially – Teams should prioritize quality over speed. Velocity naturally improves with experience and process enhancements.
❌ Expecting constant velocity – Velocity may vary due to complexity, team changes, or unforeseen issues.

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