What is Velocity in Agile?

Velocity in Agile is a metric used to calculate the amount of work of team that can complete during a single sprint. It is a key performance indicator or (KPI) in Agile project management, particularly in Scrum, and helps teams plan and predict the progress of their projects.

In this article, we will see what velocity is, why it matters in Agile projects, and how teams use it to work smarter and get things done faster.

In Agile, velocity is the amount of work a development team completes in a given amount of time, usually a sprint. Usually, it’s measured in terms of other relevant metrics. Teams may plan upcoming sprints, monitor their progress over time, and assess their work capability with the use of velocity. It is essentially a technique for determining project scope and timetables, as well as for predicting the amount of work that a team can complete.

Calculating velocity in Agile involves summing up the story points or other units of work completed by the team in a single sprint. Here’s a step-by-step guide:

• Choose a Time Frame: You must choose a particular sprint duration for your calculation because velocity is usually determined for each sprint.
• Identify Completed Work: Examine the completed tasks or user stories from the sprint. These should to be tasks that were initiated and completed throughout the sprint period.
• Assign Story Points: Give each completed user story or task, or some other measurement. The relative difficulty or effort needed for each item is indicated by the story points.
• Sum the Points: Add up the total number of story points completed by the team during the sprint.

By calculating velocity for multiple sprints, teams can establish an average velocity that helps with future sprint planning and forecasting. It’s important to note that velocity is a guideline rather than a strict metric and may vary from sprint to sprint based on factors like team capacity and project complexity.

The formula for calculating velocity in Agile

The Agile velocity formula is:

Velocity = Total story points completed in a sprint /  Number of sprints

This formula calculates the average velocity of the team over multiple sprints by dividing the total KPI completed in all sprints by the number of sprints. It provides a measure of the team’s capacity for work per sprint on average.

A velocity chart is a graphical representation of the story points plotted on Y-axis against the sprints plotted on X -axis. 

• Using a velocity chart it becomes easy to track the measure of the effort that has been converted into an increment during each sprint. 
• Thus, it will also enable the team to evaluate the amount of effort that is required in order to complete future sprints.
• A team that has completed various iterations, will be able to forecast the release of the business product and will be able to collect information to plan upcoming projects with accurate timelines.

Now, let’s read a velocity chart with the help of an example. 

Explanation:

• In the chart we can see that 38 story points were completed in sprint 1 as well as in sprint 3, 28 story points were completed in sprint 2 and 39 in sprint 4. 
• As we already know that the story points that were completed 100% and marked as “Done” can only be considered while calculating the velocity. And even if 99 % of the work is done and only 1 % is left to be done, then also that story point will be moved to the next sprint.
• Let us calculate the average story point that will also be the velocity of the scrum team 

Average story point = ( 38 + 28 + 38 + 39 )/4 
                                  = 36 

Average Velocity of the scrum team = 36 

• Now, since we have calculated the average velocity, it becomes very easy to evaluate the time required to finish the final business release.

Here are examples of Agile Velocity:

• Variable Velocity: A team’s velocity fluctuates widely from sprint to sprint, ranging from 10 to 30 story points. This variability may be due to factors like changing team composition, scope creep, or external disruptions. The team uses this information to adapt their planning and expectations accordingly.
• Decreasing Velocity: Due to external factors such as resource constraints or technical challenges, a team’s velocity declines from 25 to 18 story points per sprint over a few iterations. This decrease prompts the team to investigate the root causes and make adjustments to improve their performance.
• Increasing Velocity: After implementing process improvements or gaining more experience with the project, a team’s velocity gradually increases from 15 to 25 story points per sprint. This uptrend indicates that the team is becoming more efficient and productive over time.

The benefits of velocity in Agile are numerous and crucial for effective project management:

• Predictability: Teams can dependably use their ability to complete tasks within each sprint by using velocity. Better planning and forecasting of project deadlines and releases are made possible by this predictability.
• Resource Allocation: Teams may more efficiently deploy resources and make sure they have the required personnel and expertise to finish scheduled work inside each sprint by knowing their velocity.
• Performance Measurement: For Agile teams, velocity is a crucial performance measure. It enables them to monitor their development over time, spot patterns, and evaluate their effectiveness and productivity.

Agile velocity can occasionally lead to issues, such as teams concentrating too much on doing tasks quickly rather than performing them correctly. Estimates may not always be precise, which might cause misconceptions about the actual amount of work that can be completed. A team that tries to take on too much too soon risks losing focus on its priorities and experiencing members tired. It is essential that teams stay balanced, put quality first, and avoid using too much energy to accomplish unrealistic goals.

Related Posts

• Velocity Chart Agile Scrum
• Story Points and Velocity in Scrum
• Agile Metrics Summary and Best Practices
• Best 10 Agile Metrics for Software Development and Testing
• What is Agile release planning?
• A brief history of the agile methodology

In conclusion, Agile velocity is a useful indicator for measuring team output and directing project planning. It has several advantages, such as performance measurement, predictability, and adaptability, but it also has drawbacks, like over-reliance, inaccurate predictions, and the possibility of tiredness. Teams should have a balanced approach, prioritizing quality over quantity, keeping lines of communication open, and continuously improving their estimation techniques in order to efficiently exploit velocity.

What is the velocity of a sprint?

The velocity of a sprint is the amount of work completed by a team within that specific sprint, typically measured in story points or another unit of effort. It provides insight into the team’s capacity and helps with planning future iterations.

What is sprint capacity?

Sprint capacity refers to the amount of work a team can realistically accomplish within a single sprint, considering factors like team size, availability, and skill set

What is user story size?

User story size refers to the relative estimation of the effort required to complete a specific user story within Agile development. It’s often measured using story points, which reflect the complexity, effort, and uncertainty associated with implementing the user story.

What is a burn chart in Agile?

A burn chart in Agile is a graphical representation of work completed over time during a project or sprint. It tracks the progress of tasks or user stories against the planned timeline, showing whether the team is on track to complete all work by the end of the iteration.