Understanding Velocity in Scrum Teams

Velocity is a measure of the amount of work a Scrum Team can complete during a Sprint, typically measured in story points. It is important to understand what variations in velocity indicate and how they should be interpreted.

Exam Question

You manage a product development organization. You are looking at the progress reports from a number of Scrum Teams in your organization, when you notice that while most teams have a velocity of 35-40 story points per Sprint, one team consistently delivers only 15-20 per Sprint. Is this a cause for concern?
(choose the best answer)
A. Yes, this is cause for concern – the Product Owner for the team in question is not pushing the team hard enough.
B. Yes, this is a cause for concern – the team in question has not calibrated their story points with the rest of the teams.
C. No, this is not cause for concern – velocity is not a measurement of team performance.
D. Yes, this is a cause for concern – the team in question is performing worse than the rest.
E. No, this is not cause for concern – the team in question will probably increase their velocity over time.
F. Yes, this is cause for concern – the Scrum Master for this team is not making this team as productive as the others.

Correct Answer

C. No, this is not cause for concern – velocity is not a measurement of team performance.

Explanation

Correct Answer

C. No, this is not cause for concern – velocity is not a measurement of team performance:
Velocity is a tool for a Scrum Team to measure their own capacity and to plan future Sprints. It is not a metric for comparing different teams. Variations in velocity can result from many factors, including team experience, complexity of work, and the team’s definition of story points. Comparing velocities across teams is not meaningful because each team estimates story points differently based on their own context and understanding.

Incorrect Answers

A. Yes, this is cause for concern – the Product Owner for the team in question is not pushing the team hard enough:
The Product Owner’s role is not to push the team but to ensure that the team is working on the highest priority items. This answer reflects a misunderstanding of the Product Owner’s role.

B. Yes, this is a cause for concern – the team in question has not calibrated their story points with the rest of the teams:
Teams are not expected to calibrate their story points with other teams. Story points are relative and specific to each team, based on their own velocity and understanding.

D. Yes, this is a cause for concern – the team in question is performing worse than the rest:
Lower velocity does not necessarily mean worse performance. It may reflect different estimation practices or a different mix of work complexity.

E. No, this is not cause for concern – the team in question will probably increase their velocity over time:
While it is possible that the team’s velocity may increase as they gain experience, this is not the primary reason why variations in velocity are not a concern. Velocity is specific to each team and should not be used for cross-team comparisons.

F. Yes, this is cause for concern – the Scrum Master for this team is not making this team as productive as the others:
The Scrum Master’s role is to facilitate the Scrum process and help remove impediments, but productivity is not solely measured by velocity. Other factors such as team cohesion, quality of work, and customer satisfaction are also important.

Agile Leadership Insights

• Team-Specific Metrics: Velocity should be used as a metric for planning and improvement within the team and not for comparison across teams.
• Context Matters: Understanding the context behind the velocity numbers is essential. Factors such as team experience, complexity of work, and estimation methods vary between teams.
• Focus on Value: Encourage teams to focus on delivering value rather than achieving a high velocity.

Relevance to the PAL I Exam

Understanding the proper use of velocity and its limitations is crucial for the PAL I exam. It demonstrates knowledge of Agile principles and effective team management.

Key Takeaways

• Velocity is a team-specific metric and should not be used for cross-team comparisons.
• Differences in velocity are influenced by various factors and do not necessarily indicate performance issues.
• Focus on delivering value and improving processes within the team rather than comparing metrics across teams.

Conclusion

Velocity is a useful tool for Scrum Teams to measure their own capacity and plan their work. However, it should not be used to compare different teams, as it does not provide a meaningful measure of performance across teams. Variations in velocity can be due to differences in estimation practices, team experience, and the complexity of work. It is essential to understand these contexts and focus on continuous improvement within each team. For more information on preparing for the PAL I exam, visit our Professional Agile Leadership PAL I™ Exam Prep.