How to Calculate the Velocity in Scrum?

I have seen that out of the many Agile methodologies used in software development, the value proposition of Scrum is perhaps the highest. The flexible and adaptive methodology can power up the entire team’s performance and successfully deliver working tech products in the market faster. 

The Scrum team’s operations depend on managing and planning sprints the smart way. Many factors will come in handy in executing the sprint properly. 

One of them is Velocity. 

In my experience, Velocity is a valuable insight providing excellent information to refine teamwork. It will aid in planning and deploying sprints during the project. 

With this post, I will discuss this particular metric in detail. You will have a complete idea of its immense importance in Agile projects. So, please keep reading to explore more about this valuable metric. By the end of the topic, you will get a clear idea about how velocity is calculated in Scrum.

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An overview of Velocity in Scrum

In Agile project management and Scrum, velocity is the metric that will determine the amount of work a team can deliver. The team should complete the work within the given time frame, known as a sprint. The velocity can be expressed as story points. It is a unit for measuring the task in terms of risk and complexity. These points will allow us to determine the work better than the time-based metrics. 

For example, I will consider a user story when creating a complaint form for the customer. The team can give this task a story points value of three. This assignment is based on the task's perceived effort or complexity. 

Meanwhile, integrating a payment gateway into the app can be rated eight story points. This is because it is of a comparatively higher complexity.

If you know the team's velocity, it will aid in continuous improvement. Plus, it will also allow your team to forecast for future sprints and let you set realistic goals. In my opinion, this metric will help your team to have a stable workflow. Velocity will also help predict the timeline and manage the stakeholders' expectations. You can learn more about Scrum techniques by enrolling in a course that earns you a Certified Scrum Master Certification.

Let me take you through how velocity is calculated in Scrum and how to calculate average velocity in Scrum. So, continue reading. 

How can I measure the Velocity in Scrum?

As far as I know, velocity is calculated after the end of each sprint. It is done by summing up all the story points or measuring the fully completed story units. Now, let us look at the procedure of how is velocity calculated in scrum:

1. You have to plan the sprint 

Before starting the sprint, you have to assign the points to the user stories of the product backlogs. 

For instance:

• I can assign 5 points to the user authentication task. Meanwhile, the payment gateway user story will be more complex. So, I will assign 8 points to it. 
• The Scrum team should be dedicated to completing the user stories within the sprint. Also, holidays and other factors must be included while planning the sprint. 

2. You should list the finished user stories 

You have to create a list of all the user stories you have completed after completing the sprint. These stories should be met with the expectation of the Scrum Master or the owner. If the sprint's tasks are 90% done, that does not mean the sprint is completed. The Scrum Master will reevaluate the time of the next sprint and should ensure the remaining user stories will be completed.

Also Read: Converting Story Points to Hours

3. You should check the story points 

The Scrum team should have already assigned the story points to each task. If the points need to be reevaluated, you can do it. In fact, at my workplace, I have seen how managing the points enables better productivity without any wastage. 

For example, if the team has completed two user stories. Let these stories be the user authentication and payment gateway. I can reassign these stories with new story points. I can reassign them as:

• 3 points for user authentication.
• 5 points for payment gateway.

4. Sum up the unit points to find the velocity 

In this step, you must add story points for all the completed tasks. This sum will show the sprint velocity. 

I will consider the above scenario:

• So, I can see the velocity would be 8 points. This I got by adding 3 and 5. 
• This is how velocity is calculated in Scrum. 
• I advise you to get a CSM Certification. This will add value to your resume. 

Also Read: Agile Velocity vs Capacity

How to calculate average velocity in Scrum

To calculate the average velocity, add story points of all the sprints. After that, you should divide them by the number of sprints.  

Here are the steps you can take for velocity calculation in Scrum:

• Add the story points of each completed sprint. 
• Collect data on all the completed sprints. 
• Now, calculate the average. 

For example, consider three sprints:

• Sprint 1 with 30 story points. 
• Sprint 2 with 25 story points.
• Sprint 3 with 35 story points.

Now, I will get 90 by adding these story points to all sprints. After that, I will divide it by three, and the result is 30. So, I got 30 as an average velocity point. 

Teams use the average velocity measure to plan their future sprints. This measure will be helpful for newly formed teams. Plus, it can also benefit the teams that have changed structure or size. 

To learn practical examples, enrol in a course that provides Scrum Master Certification. 

Also Read: What is a Value Proposition?

 

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The Significance of Scrum Velocity in Agile Development

Velocity is the key metric in Agile development. It will help in accessing productivity and planning future work. Let us look at the significance of this measure:

1. Performance measurement : Velocity will serve as a performance measure. It will help us to understand how much the team can handle within a specific timeframe. Additionally, teams can identify the improvements and refine the work by examining the velocity. 

2. Capacity management: Velocity can be used to manage the team. It will ensure the team will not overcommit or under-commit in future sprints. It will help us in resource planning and allocation. Overall, it will ensure the team will complete the goal without getting overburdened. 

3. Continuous improvement: Velocity data is crucial for retrospectives. It will help the team identify weak performance areas. As a result, they can address them. Plus, the team can also refine their process with this insight. Ultimately, it will improve the workflow. 

4. Adaptability: The Agile development will enable a response to the change with the flow of the plan. Meanwhile, velocity will help determine realistic progress. Thus, it will allow us to change accordingly. It will enable us to adjust the plans based on the performance. You will not rely on the assumption to make decisions.  

I suggest you get a CSM Certification or Scrum Master Certification. It will help in learning Scrum techniques. 

Conclusion

Once you understand the velocity, you can effectively plan and manage your sprints. As per my work experience, it is a powerful tool to enhance the team's productivity. Meanwhile, it is also worth noticing that velocity is a team-specific measure. 

I hope this blog has helped you understand how to calculate velocity in scrum. Plus, I also recommend that you get the Certified Scrum Master Certification. This will help in excelling in your career. 

FAQs

1. Does velocity in Scrum have types? 

There are two types of velocity:

[1] Actual velocity 

It is calculated by the sum of the story points done by the team and the total number of sprints. 

[2] Expected velocity 

It is calculated by dividing the total estimated story points by the number of sprints. 

2. Why is calculating Scrum velocity so crucial?

It is important to provide a predictable and sustainable pace of work. Tracking enables the team to complete each sprint. Meanwhile, velocity will help forecast future sprints. It will allow teams to have a realistic goal. Overall, it will improve accuracy and identify bottlenecks. 

3. Who will calculate Scrum Velocity?

The velocity is determined by measuring the number of tasks completed in each sprint. This is measured in terms of user stories and story points. This data is used to plan and manage the upcoming sprints. The Scrum Master can calculate it, or the team can collectively calculate it. 

4. How do you calculate velocity in Scrum for new teams?

You have to start with the first sprint. The team will determine the effort or story points required to complete each backlog. At the end of the sprint, the team can calculate the Scrum velocity.