Scrum Velocity - How to Use it the Right Way

Speed is crucial in software development, but it’s not the only thing that counts. Without clear direction and purpose, your team may struggle to stay on track and deliver valuable results. This is where scrum velocity can help you.

So, let’s delve into the concept of Scrum velocity, how it’s calculated, and why it’s a game-changer for Agile teams.

What is Scrum Velocity?

Velocity is speed with direction, and development speed without direction is an utter waste of time. Therefore, team velocity in scrum development is the team’s capacity for producing useful, working software. Simply put, scrum velocity is one of the key agile metrics that represents the capacity of a development team to achieve a given purpose.

For example, if a team completes user stories with a total of 30 story points within a two-week sprint, their velocity for that sprint is 30.

Calculation of Velocity: Story Points Completed Per Iteration

To calculate velocity in Scrum, follow these key steps. First, determine the unit of measurement to track progress and select a time frame (iteration or sprint) for the calculation. Once these basics are in place, track completed story points.

Story points are used in Scrum to estimate the size or complexity of user stories or backlog items. Teams can compare and prioritize different pieces of work based on their difficulty level.

Track progress during the sprint by recording the total number of story points completed. This allows accurate calculation of velocity at the end of the sprint.

Velocity is measured per sprint and used for planning and productivity measurement. Tracking velocity, a fundamental Scrum metric, helps forecast how much work can be accomplished in future sprints and informs release and iteration planning. If there is a user story with 4 story points and another with 5 story points, then this sprint’s scrum velocity is 9 (4+5) by adding both story points.

Benefits of Velocity Tracking

Velocity tracking is one of the key agile metrics used in Scrum and other agile frameworks. Below are a few benefits of velocity tracking:

Helps with Planning

Monitoring velocity is essential for boosting team productivity and improving forecasting and planning. By tracking velocity across various sprints, the team can establish a standard and use it to estimate the amount of work they can handle in future sprints. This ensures that they can set practical goals and make informed commitments to stakeholders.

Improve with Each Iteration

By using velocity tracking, the team can detect patterns and trends in their performance. They can also examine the factors that cause fluctuations in velocity, such as changes in team structure, task complexity, or external dependencies. Through iterative development, the team incorporates lessons learned from each sprint into the next, fostering a cycle of continuous improvement. By better understanding these factors, the team can refine and improve their procedures, resulting in more dependable and consistent delivery.

Fosters Better Collaborative Team Spirit

When teams can track their velocity and see improvements or consistency, it significantly impacts their motivation and overall satisfaction with their job. This can also foster a spirit of collaboration and transparency within the team as they work together to achieve their goals and continuously improve their velocity.

Enables Transparency

Monitoring velocity provides an exact measure for stakeholders and management to track team progress, capacity, and abilities. It encourages transparency and fosters trust between the team and stakeholders, leading to successful collaboration.

Limitations of Scrum Velocity

Velocity Targets can be Counterproductive

While velocity is a valuable metric for scrum teams, setting it as a target can create undue pressure and even lead to punishment for team members who fall short. A more compassionate approach focuses on tracking metrics and identifying any underlying causes of issues. This way, your team can improve their processes, eliminate bottlenecks, and incorporate new tools to enhance their skills over time.

Leads to Team Comparison

It’s understandable that teams approach projects in their unique way, so it’s not always fair or practical to judge them solely based on their speed. A team’s velocity can be influenced by various factors, including the project’s complexity and the team members’ individual skill sets.When calculating scrum velocity, it’s important to remember that story point estimates can be subjective. Comparing teams solely based on velocity can lead to a negative work environment, internal conflicts, and low morale. It’s better to use this measure to navigate situations within a team rather than to compare teams against each other.

When you introduce the concept to the team, it’s understandable that every team needs time to work together effectively. Whether they’re a new or old scrum team, they would take time to understand new complexities and create action plans. It’s unrealistic to expect them to perform at maximum velocity right away, and it’s common for leaders to have unrealistic expectations based on an outsider’s perspective. Only the scrum teams and managers working on the project can accurately estimate true scrum velocity, as they’re facing internal roadblocks and several complexities.Therefore, providing them with space and time to work together effectively is crucial. Business leaders who fail to acknowledge this may unknowingly hinder their team’s progress and prevent them from moving in the right direction.

Lack of Consideration for Unplanned Activities Affecting Quality

Scrum teams must allocate time for unforeseen activities, such as addressing technical debt and critical bugs reported by customers. But teams who only focus on scrum velocity need more investment in quality.

Neglecting these essential tasks can lead to a decrease in the quality of the final product and cause issues for future timelines. Short-term focus on velocity can hurt progress and ultimately harm business success. Therefore, it’s crucial to invest in the necessary resources for scrum teams to work effectively and prioritize quality over speed.

Using it to Determine Completion Estimations

While some team leaders rely on scrum velocity for project completion estimates, this may not align with Agile principles. Factors such as changing requirements, short development sprints, and unpredictable variables affect velocity.

Therefore, depending solely on a static tool or metric for progress measurement may not be an efficient choice, especially if it only provides an estimation instead of a precise timeline. It’s important to remember that scrum velocity can only offer an approximate timeframe for project execution and should be treated as such.

Using it as a Performance Metric

Overemphasizing scrum velocity as a performance metric can lead to inaccurate predictions and frustration when tasks take longer than expected.

Moreover, assigning blame for incomplete stories can create negative feelings among team members. To avoid these issues, remember that velocity should only be used for prediction purposes and not for comparison or competition. Ultimately, the goal of development should be predictable progress rather than constantly increasing speed.

Lacks Details

While velocity provides a general sense of how much work has been completed, it doesn’t give the full picture. You must account for factors like technical debt, bug fixes, and non-functional requirements to ensure you get all the important details that impact the overall value the team delivers. It’s essential to look beyond the surface level and consider the specifics of what was achieved and the quality of the work.

Tips to Improve the Use of Scrum Velocity

As part of sprint planning, the Scrum Master plays a crucial role in facilitating these retrospectives and ensuring that the team's feedback is incorporated into future sprints.

  • Use reference stories, comparative sizing, or historical data to improve story point estimations.
  • Regularly conduct retrospectives to reflect on team performance and improvement by discussing challenges. This fosters a collaborative environment and celebrates learning.
  • Improve our productivity through experimentation with various Agile practices, techniques, and tools. Regularly seek reviews and refine Scrum processes based on feedback. 
  • Optimize productivity during each sprint by limiting the work in progress and overburdening the team with multiple user stories. Prioritize completing a smaller number of high-quality user stories. 
  • Don’t fixate on velocity numbers; instead, track trends. Identify patterns for better forecasting and planning.
  • When evaluating a team’s performance and productivity, it’s important to consider more than just velocity. Other metrics, such as cycle time, lead time, and cumulative flow diagrams, can provide valuable insights and help create a complete picture of the team’s progress. 

Use Scrum Velocity to Enhance Your Productivity and Not Limit it

As an Agile team, it’s essential to recognize the significant role that velocity plays in your success. By understanding your team’s past velocity, you can better plan for future sprints and set realistic goals everyone can commit to within the Scrum framework. This helps keep everyone on the same page and provides a clear measure of your productivity and progress over time.

It also enables you to make data-driven decisions and aim for constant improvement. Ensure you look at scrum velocity objectively and not as a sole indicator of performance and productivity.

By following some simple tweaks to your process and journey with scrum velocity, you can achieve your goals efficiently.