What is velocity in Agile?

An important point to consider is that velocity does not measure individual productivity but reflects the progress of an entire team. Teams can use velocity to better manage scope, deadlines, and expectations while practicing continuous improvement of their workflow. Over time, consistent tracking of velocity delivers more data and information teams can use for more reliable sprint planning and long-term forecasting.

To calculate velocity, add all the story points or completed work items from a sprint where the tasks were fully done according to the definition of done (DoD). To ensure greater accuracy, this calculation should only include work completed during the sprint and exclude partially finished tasks. Over several sprints, teams can calculate the average velocity to identify a more predictable measure of the team's capacity.

Imagine a software development team working on a project with two-week sprints. Each task in the sprint is assigned a story point value based on its estimated effort and complexity.

Sprint 1:

• Task A: 5 points
• Task B: 8 points
• Task C: 3 points

The total velocity for Sprint 1 is this: 5 + 8 + 3 = 16 points. This means the team completed 16 story points.

Sprint 2:

• Task D: 8 points
• Task E: 5 points
• Task F: 5 points

The total velocity for Sprint 2 is this: 8 + 5 + 5 = 18 points. The team completed 18 story points.

Sprint 3:

• Task G: 10 points
• Task H: 7 points
• Task I: 6 points

The total velocity for Sprint 3 is: 10 + 7 + 6 = 23 points. The team completed 23 points.

Now, the team can calculate its average velocity by adding the velocities for all three sprints and dividing the result by three (the total number of sprints:

This shows that the team's average velocity is 19 points per sprint, which can now be used for forecasting how much work they can take on in future sprints. For example, if the backlog contains tasks totaling 38 story points, the team can estimate that it would take approximately two sprints to complete.

Velocity and capacity are complementary metrics in Agile but serve distinct purposes. Velocity measures the amount of work completed in a sprint, reflecting a team's historical performance. In contrast, capacity represents the team's available effort for a sprint, factoring in variables like team size, holidays, and availability.

• Velocity is backward-looking and helps with forecasting. Shows what the team has achieved.
• Capacity is forward-looking and aids in realistic sprint planning. Predicts what the team can achieve given current circumstances

Both metrics help teams balance their workload and avoid overcommitting during sprint planning.

A team can increase their velocity through a combination of process improvement, collaboration, and skill development. Critical steps include streamlined workflows, the removal of bottlenecks, and the creation of a culture of continuous improvement. Other ways a team can increase velocity are:

• Clear requirements and acceptance criteria: To reduce rework and misunderstandings
• Regular retrospectives: To identify inefficiencies and implement changes
• Cross-training team members: To boost flexibility and adaptability
• Encouraging team cohesion: To create a shared sense of responsibility and investment in improving performance

This is a long-term process that requires patience and the effort of all team members. Any shortcuts may compromise quality or overburden the team.

Data is an essential part of any team’s efforts to improve its velocity. To streamline a workflow, optimize communication, or strengthen cohesion, team members need access to information, and managers need to see what is happening. Enji.ai does this and more through continuous background monitoring of individual and team performance to identify bottlenecks and inefficient practices through AI-powered insights.

• Copilot: AI that knows a project and can offer insights into improvements based on real-time data.
• Code metrics: Signals where teams are producing quality code or where developers require assistance.
• Asynchronous stand-ups: Streamline communication to provide everyone insights into the team's progress to identify any challenges before they become serious issues.
• Routine alerts: Keep teams on track with reminders to check tasks and perform other work that improves the workflow and increases velocity.

These are a few of the features Enji offers teams to improve their performance and create more value in every project.