Velocity Averaging

5 minutes 5 Questions

In a typical Scrum setup, the development team works in iterations known as 'sprints'. The 'velocity' of a team refers to the amount of work they can complete in a single sprint. After a few sprints, an average velocity can be calculated to estimate future performance. However, an important caveat …

Guide: Velocity Averaging in Advanced Estimation Techniques

Importance: In the realm of project estimation techniques, Velocity Averaging is highly essential. It aids in predicting how much work a team can perform within a Sprint, leading to a more efficient task distribution and project management. Achieving predictability in Scrum is highly beneficial because it allows teams to plan their sprints more accurately.

Definition: Velocity Averaging is a technique used to calculate the average amount of User Story Points (USP) a team can complete in one sprint. This average is obtained by adding up the total USPs completed in previous sprints and dividing it by the number of sprints.

How It Works: Suppose a team has completed five sprints with USPs of 20, 25, 22, 24, and 27 respectively. The average velocity would be (20+25+22+24+27)/5 = 23.6 USP per sprint. This gives an estimate of the amount of work the team can undertake in future sprints.

Exam Tips: Answering Questions on Velocity Averaging
1. Understand the Formula: You must be very comfortable with the velocity averaging formula and how it's derived.
2. Real-World Application: Try to relate the concept with real project scenarios.
3. Practice: Practice sample problems involving the calculation of velocity averaging.
4. Understand its Limitations: Remember that velocity is not a measure of the quality of work, but only the quantity.
5. Conceptual Understanding: Ensure that you understand the principle behind velocity averaging and not just the methodology. It's not a guaranteed projection of future performance but is only a helpful estimation tool.

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PSM I - Velocity Averaging Example Questions

Test your knowledge of Velocity Averaging

Question 1

The average velocity for your Scrum team across the past six sprints is 30 story points. In the upcoming sprint, all team members are available and there are no expected interruptions, but the sprint duration is shorter due to a public holiday. How should you address this based on velocity averaging?

Recalculate the team's velocity considering only the sprints with similar shorter durations in the past Adjust the commitment slightly down to account for the fewer work days Utilize the remaining team capacity to tackle technical debt instead of adjusting the sprint commitment Increase the sprint goal complexity to push the team's limits despite the shorter duration

Correct Answer: Adjust the commitment slightly down to account for the fewer work days

Velocity is a measure of the amount of work a team can tackle during a single sprint and is used to plan future sprints based on past performance. Given the shorter sprint duration due to a public holiday, adjusting the sprint commitment slightly down is sensible to account for the fewer work days. Recalculating the team's velocity based only on similar shorter durations might not provide a true representation of the team's capabilities. Increasing the sprint goal complexity could place unrealistic expectations on the team. While utilizing remaining capacity for technical debt is valid, it does not directly address the need to adjust for the shorter sprint in planning based on velocity averaging.

Question 2

You've joined a new company as a Scrum Master. The team has an erratic historical velocity data - 10, 50, 30, 70 and 40 story points for the past five sprints. Management insists on a predictable delivery schedule. As a Scrum Master, how would you approach this with velocity averaging?

Ignore velocity averaging due to its inconsistency Choose the highest velocity as the team's capability Use the lowest velocity to ensure the team meets the commitment Calculate the average of last few sprints, explain the situation to management and use this as an initial guide, while working with the team for consistent velocity

Correct Answer: Calculate the average of last few sprints, explain the situation to management and use this as an initial guide, while working with the team for consistent velocity

In this scenario, the best approach would be to 'Calculate the average of the last few sprints, explain the situation to management and use this as an initial guide, while working with the team for consistent velocity'. This method gives a more realistic projection of the delivery timeline considering most recent data and also includes efforts to improve the consistency of the velocity. Here's why the other options don't work: 'Choose the highest velocity as the team's capability' doesn't consider the variance, and might set unrealistic expectations. Ignoring velocity averaging due to its inconsistency doesn't solve the problem, and doesn't provide the team a benchmark to improve. Using the 'lowest velocity to ensure the team meets the commitment' might sound safe, but could lead to under-utilization of the team's capacity and inefficiency.

Question 3

Your Scrum team has maintained an average velocity of 40 story points across the last four sprints. Now, the team decided to implement a new tool which they believe can enhance their productivity. As a Scrum Master, what would be your approach based on velocity averaging for the next sprint's commitment?

Advocate for a significant increase in the sprint's story points, assuming the new tool will drastically improve the team's efficiency right away Recommend the team to cautiously adjust their sprint commitment considering potential learning curves and initial productivity impacts of the new tool Encourage the team to dedicate the entire next sprint to mastering the new tool, sidelining the usual sprint commitments for enhancing long-term productivity Suggest the team to continue with the same velocity without accounting for the new tool, as external factors should not influence sprint commitments

Correct Answer: Recommend the team to cautiously adjust their sprint commitment considering potential learning curves and initial productivity impacts of the new tool

The correct approach is to cautiously adjust the sprint commitment by taking into consideration the potential initial decrease in productivity due to learning curves associated with the new tool. Incremental adjustments allow for more accurate forecasting and better manage expectations. Jumping to significantly higher commitments or ignoring the implications of introducing new tools can misalign expectations and negatively impact team morale. Dedicate an entire sprint to learning the new tool without delivering value may not be the best use of the Scrum Team's time, as Scrum focuses on delivering increments of value continuously.

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