LogRocket Blog

How to understand and calculate team velocity

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  • How to calculate team velocity: Team velocity is calculated by dividing the total story points completed by the number of sprints. It is recommended to use data from the past three sprints to calculate the team's initial velocity as a baseline.
  • Team velocity visualization: Visualization methods such as velocity charts can be used to track and display the actual delivered story points and predicted story points. This helps in monitoring progress and making data-driven decisions.
  • Importance of team velocity: Team velocity is a valuable metric for capacity planning, stakeholder communication, continuous improvement, and risk management. It helps product managers predict future work capacity, prioritize features or user stories, and set realistic project timelines. It also allows teams to identify trends and improvements in their productivity over time.
  • Strategies to improve team velocity: To improve team velocity, it is important to focus on collaboration and process improvements. This can be achieved by fostering open communication, addressing bottlenecks, providing necessary resources, and continuously learning from past experiences.
  • Use team velocity with caution: While team velocity is a useful metric, it should not be the sole measure of a team's performance. Other factors such as quality, customer satisfaction, and adaptability should also be considered. Additionally, team velocity can vary over time, so it should be used as a guide rather than a rigid target.