For many Agile teams, velocity has become the go-to metric for tracking progress. It’s simple, easily understood, and offers a straightforward way to measure how much work is being completed within each Sprint. However, an overemphasis on velocity can lead teams down a narrow path, where the pursuit of speed overshadows the pursuit of value. When velocity becomes the sole metric by which a team's success is judged, the underlying question that leaders and teams should be asking is often overlooked: are we truly delivering the outcomes that matter?

The Limitations of Velocity

Velocity measures the amount of work completed in a Sprint, typically calculated in story points or hours. It gives teams a sense of their capacity and can help in forecasting future Sprints. However, this focus on the quantity of work can be misleading. Velocity tells you how fast you’re moving, but it doesn't tell you if you’re moving in the right direction or if the work you're delivering is valuable. A team can have a consistently high velocity, but if they're not delivering features that improve the user experience, address customer pain points, or align with strategic business goals, then that velocity is nothing more than a number.

When velocity becomes the primary metric, teams may start gaming the system. They might inflate story points to show higher velocity or prioritize easy tasks to ensure they can "complete" more work. This behaviour shifts the focus from delivering value to merely ticking off items on a list, which undermines the purpose of Agile—to adapt, deliver value iteratively, and continuously improve. The trap here is the assumption that higher velocity equates to greater success. However, without examining the impact of that work, velocity is an empty metric.

Shifting Focus from Output to Outcomes

The essence of Agile is not just about how much work a team can complete but about delivering value. This is where the concept of Outcomes over Outputs becomes crucial. Outcomes are the measurable changes or benefits that result from delivering a product or feature. They answer the question: what value did this work bring to our users or the business? Outputs, on the other hand, are the tangible deliverables—the features, enhancements, or fixes that the team produces. While outputs are important, they are not the end goal. The goal is to achieve meaningful outcomes that drive business success and enhance customer satisfaction.

When teams focus solely on velocity, they risk losing sight of the outcomes they are supposed to achieve. For example, a team might deliver a new feature with a high velocity, but if that feature doesn’t resonate with users or fails to solve a key problem, its delivery has little value. Conversely, a team that has a lower velocity but delivers a feature that significantly improves the user experience or generates a substantial business impact is ultimately more successful. By shifting the focus from output (velocity) to outcomes (value delivered), teams can align their efforts with what truly matters—creating a positive impact.

Embracing a Broader Set of Metrics

To gain a more holistic view of team performance and success, it’s essential to look beyond velocity and incorporate a broader set of metrics. This is where frameworks like Objectives and Key Results (OKRs) come into play. OKRs help teams set ambitious objectives and define measurable key results that indicate progress toward those objectives. Unlike velocity, which measures speed, OKRs focus on the impact of the team's efforts. They connect the team's work to the strategic goals of the organisation, ensuring that every Sprint and every feature delivered contributes to a larger purpose.

However, even OKRs have their limitations. While they provide a valuable framework for setting direction and measuring progress, they are not a catch-all solution. OKRs define what success looks like, but they don't necessarily tell the full story of how the team is progressing towards it. Teams need to pair OKRs with other qualitative and quantitative metrics to create a comprehensive picture. For instance, customer satisfaction scores, user engagement metrics, and technical health indicators like code quality and system performance can all provide insights into how well the team is delivering on its objectives.

Metrics like Lead Time, Cycle Time, and Customer Satisfaction can offer deeper insights. Lead Time measures how long it takes for a feature or change to go from idea to delivery, providing a sense of efficiency. Cycle Time measures the time it takes for work to go from "in progress" to "done," highlighting the team's ability to deliver increments of value regularly. Customer Satisfaction, often gathered through feedback or surveys, offers a direct measure of the impact the team's work has on its users. By incorporating these metrics, teams can better understand not just how fast they’re moving but whether they are delivering valuable outcomes.

The Perils of Chasing Velocity Alone

Relying solely on velocity can lead teams into several pitfalls. One common issue is the tendency to prioritise quantity over quality. When velocity is the main measure of success, teams might feel pressured to increase their story points each Sprint, often at the expense of thorough testing, refactoring, or user research. This can lead to technical debt, a backlog of defects, and features that don't fully meet user needs. Over time, this not only impacts the product's quality but also the team's ability to deliver value consistently.

Another risk is that velocity-driven teams may shy away from tackling complex, innovative work. Large or risky features that could deliver significant value might be broken down into smaller, less risky tasks simply to ensure they can be completed within a Sprint, thereby boosting velocity numbers. This avoidance of risk undermines the spirit of Agile, which encourages experimentation and learning. True innovation often requires stepping into the unknown and may not fit neatly into the constraints of velocity tracking.

Creating a Balanced Approach

To avoid these pitfalls, teams need to adopt a balanced approach to measurement. Velocity has its place; it can be a useful tool for understanding team capacity and planning future Sprints. However, it should be just one part of a broader set of metrics that provide insight into both the output and the outcome of the team's work. Teams should ask themselves critical questions: Are we solving real customer problems? Are we improving user satisfaction? Are we reducing technical debt and building a sustainable product?

By focusing on a mix of metrics, teams can ensure they are not just delivering work efficiently but delivering the right work effectively. This requires a cultural shift where success is defined not by how much is delivered but by the impact of what is delivered. It involves continuous reflection, using Sprint Reviews and Retrospectives to evaluate the value of the work done and its alignment with the team's goals and the organisation's objectives.

Moving Beyond Metrics to Mindset

Ultimately, the conversation about metrics is a conversation about mindset. Agile is not about delivering more; it's about delivering better. It's about creating products that meet real needs, enhance user experiences, and drive business outcomes. By moving beyond a narrow focus on velocity and embracing a more holistic set of measures, teams can ensure they are not just moving quickly but moving with purpose and direction.

In this broader view, velocity is no longer the end goal but a part of the journey. It serves as one indicator of progress, helping teams understand their capacity and flow. Yet, it is the pursuit of outcomes—measurable, valuable change—that defines true success in Agile teams. By asking not just how fast they are moving but whether they are moving towards meaningful goals, teams can cultivate a mindset of continuous learning, innovation, and value-driven delivery.

In the end, velocity is a tool, not a target. It can guide teams in understanding their pace, but it should never overshadow the ultimate objective: to deliver products and services that make a difference. By measuring what truly matters, teams can move beyond the superficial allure of speed and towards the deeper, more rewarding goal of delivering real value to their customers and their business.