Velocity. The Revolutionary Way to Measure in Scrum (2024)

Almost everybody has heard of Scrum and no sooner do we learn of its existence, we hear about 'velocity'. But what is it and what part does it play in Scrum? Let's take a look.

Velocity. The Revolutionary Way to Measure in Scrum (1)

Definition of Velocity

Let's start with a definition of velocity within the context of Scrum. I've deliberately broken this down into small phrases as each phrase deserves an explanation:

Velocity is:

The Amount of work
A Scrum Team
Gets Done
Within a Sprint


Please note that this is a 'Derek Definition' and not an official Scrum definition.

Breaking it down

The first phrase: 'Amount of work' is deliberately neutral on the subject of how you measure. You can use hours, work items, features, story points, t-shirt sizes or any other form of consistent measurement that is useful to you. Don't worry if you've never heard of some of these measurement types before. All that matters is that you have a consistent way of measuring the work.

The second phrase, 'A Scrum Team' indicates that this definition applies specifically to Scrum. It could equally apply to an agile team though, as long as the composition of the team is consistent.

'Gets done' comes next. This means work that is completed in conformance with the definition of done.

Finally, we have the phrase 'Within a Sprint' to indicate the time boundary within which we measure.

Every Sprint Can Have a Different Velocity. Which Do You Use?

It is common for Velocity to fluctuate over Sprints. When that happens, there are a number of approaches you can use:

  • Take the last number and use that. It's the most recent data point you have and therefore, the most accurate
  • Take the average over all Sprints. It smoothes out the peaks and troughs and gives us an average we can work with
  • Take the average of the last three Sprints
  • Take the average of the best three Sprints
  • Take the average of the three worst Sprints

Each of the above approaches are valid. Use your knowledge of context to decide which works best for you.

When is Velocity Useful?

Velocity can be useful in the following circ*mstances:

  • As a guide when forecasting how much work can be be done within a Sprint
  • Creating burn-down and burn-up charts
  • Creating forecasts for Release and Product delivery dates

When is Velocity Not Useful?

Velocity is not useful under the following circ*mstances:

  • Comparing performance of different Scrum Teams
  • Assessing the performance of the Scrum Team to which it relates
  • When used as a target rather than a measure

The Benefits

The Scrum Guide does not mention Velocity. Instead, it refers to the need for forecasting, planning and sizing. So, where does Velocity fit in and what are the benefits?

  • It's a common technique that is useful for forecasting, planning and sizing. Many Scrum Teams use it and it's a good technique to understand
  • The creation of forecasts, charts and reports is easier. If only because the mathematics is simpler.
  • Forecasts are usually more accurate

Examples of Use

Example 1 : Sprint Planning

A typical format for Sprint Planning might look like this: The Product Owner brings an ordered Product Backlog to Sprint Planning. They take the first item and ask the Developers "Can you do this"? The Developers assess the size of the item against the Velocity. As long as the sum of sizes for all item estimates is less than the Velocity, the Developers accept the work.

Example 2 : Forecasting a Delivery Date

The Product Owner sums the size of all Product Backlog Items that remain in the Product Backlog. They divide the sum by the Velocity and round up the result to the nearest integer. This tells us how many Sprints are needed to get the Product done.

Taking a worked example: The size of the items in the Product Backlog sums up to 210 points. The average velocity of the team is 21 points. We divide 210 by 21 and get the result 10. It will take 10 Sprints to deliver the product. If we work in two-week Sprints, that's 20 weeks.

Summary

It was the search for a new way to estimate software projects that brought me to Scrum. When I discovered Velocity, it set about a revolution in the way I made forecasts and plans. It was fast, effective, and more accurate that the way I used to estimate.

Velocity is a useful measure. Because it is based on actual work 'done', it is beneficial for creating forecasts. It is common for Velocity to fluctuate between Sprints and equally common to work with an average when creating forecasts.

Velocity is an excellent measure and a terrible target. Once a measure becomes a target (ie: for performance measurement), it loses the ability to provide meaningful, trustworthy, transparent data. This is because the number gets gamed. Avoid this at all costs. Because the best Velocity is an honest one.

Velocity. The Revolutionary Way to Measure in Scrum (2024)

FAQs

What is the velocity measure in Scrum? ›

Velocity is a measure of the amount of work a Team can tackle during a single Sprint and is the key metric in Scrum. Velocity is calculated at the end of the Sprint by totaling the Points for all fully completed User Stories. Upon completion you will: Know how Velocity is calculated.

What is the velocity of points in Scrum? ›

New Scrum teams usually average 5–10 story points per person per two-week sprint. Understanding the team's velocity can help with continuous improvement. It allows teams to forecast future sprints, plan projects, and set realistic goals.

What is the velocity chart in Scrum? ›

The velocity chart displays the average amount of work a scrum team completes during a sprint. Teams can use velocity to predict how quickly they can work through the backlog because the report tracks the forecasted and completed work over several sprints. The more sprints, the more accurate the forecast.

What is velocity a measure of Agile? ›

Agile velocity is a metric that calculates how long user stories within a particular sprint have taken to complete against their estimate. This allows project managers to accurately predict how long future sprints, or an overall project, will take to complete.

How to measure velocity? ›

Determine the object's original velocity by dividing the time it took for the object to travel a given distance by the total distance. In the equation V = d/t, V is the velocity, d is the distance, and t is the time.

Why is the velocity important? ›

Why Velocity Matters. Velocity measures motion starting in one place and heading toward another place. The practical applications of velocity are endless, but one of the most common reasons to measure velocity is to determine how quickly you (or anything in motion) will arrive at a destination from a given location.

How to increase velocity in Scrum? ›

To increase velocity, try the following:
  1. Use cross-training and ensure knowledge transfer is consistent.
  2. Avoid context switching. ...
  3. Be aware of resource management and maintaining a constant development team.
  4. Use a rolling average of the last 3-4 sprints to plan the next sprint.

What is velocity in Scrum artifacts? ›

Velocity in Scrum is a critical metric that helps teams estimate the amount of work they can complete in a given time frame, typically a sprint. It is calculated by adding up the estimates of the work (usually in story points) completed in the last sprint. This provides a useful benchmark for planning future sprints.

What is the velocity variance in Scrum? ›

Velocity: The amount of work a team completes in a sprint, often measured in story points. Variance: The fluctuation in a team's Velocity over several sprints.

What is the velocity score in Agile? ›

Velocity makes it easy for agile teams to estimate how much work they can achieve per sprint and how long it'll take to get a project to a certain level of growth. Agile velocity is measured in either days, ideal days, or the number of hours it takes the team to deliver a number of backlog items, story points, etc.

What is the difference between velocity and throughput in Scrum? ›

Velocity and throughput are both metrics that can help a Scrum team to measure their progress and performance, but they have some key differences. Velocity is based on estimation, while throughput is based on output. Velocity is measured in story points or hours, while throughput is measured in units or count.

How do you calculate initial team velocity in Agile? ›

Note that each team has its own velocity so you'll have to measure it separately.
  1. Team Velocity = Total Story Points Completed Per Sprint / Number of Sprints.
  2. Team Velocity = Average Number of Story Points Delivered Per Sprint.
  3. Not sure where to start? Here are some ways you can continue to improve your team velocity:
Apr 21, 2021

How is velocity measured in Scrum? ›

Actual velocity is calculated by dividing the total Story Points completed by the team by the number of Sprints. For instance, if the Scrum Team has finished a total of 80 points over 4 Sprints then the actual velocity of the team would be 20 points per Sprint.

How is velocity calculated in a sprint? ›

How to calculate sprint velocity. You can calculate sprint velocity with a simple math equation: divide the number of backlog items (or story points, if that's what your team uses) by the total length of your sprint in days. Figuring out how much your team can complete in an average sprint is relatively simple.

What is an example of velocity? ›

To figure out velocity, you divide the distance by the time it takes to travel that same distance, then you add your direction to it. For example, if you traveled 50 miles in 1 hour going west, then your velocity would be 50 miles/1 hour westwards, or 50 mph westwards.

What is velocity vs capacity in Scrum? ›

Fundamentally, velocity refers to the speed at which work can be delivered, given existing capacity, which is the number of person-hours available. Below are other key differences. Though they serve different purposes, agile velocity and capacity planning are both critical to good agile scrum project management.

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