A few weeks ago I went to a talk at Agile Yorkshire by Tom Hoyland where he discussed the how he formed an agile team. In it he claimed that Velocity is a Vanity Metric.
If you haven’t read it then I highly recommend you pick up a copy of The Lean Startup by Eric Ries, this was my main introduction to the term. In the book Eric talks about how a Vanity Metric is any figure which is skewed to inflate the success of a product. One of the example he gives is Number of Registered Users, a figure which will clearly go up and up over time. A better metric, Ries argues, would be Number of Active Users. Obviously if you’re looking for a successful product you’re more interested in how many users are currently using it than how many people completed the signup process.
He claims that by basing metrics and KPIs on these Vanity Metrics is akin to giving yourself a pat on the back for building a successful product while sticking your head in the sand about why your business was losing money (or the startup running out of runway as he describes it in his book).
So, to return to Tom’s question – is Velocity a vanity metric?
Most Scrum Masters calculate a teams’ velocity by taking an average over the previous sprints. The number of sprints varies but six (around 12 weeks of work) is the norm. Using this figure the the team can then calculate how far a particular story is away from delivery or epic from completion.
There’s no doubt that Velocity is a useful forecasting tool (although, as one of my colleagues pointed out recently that if you plan a sprint on your average velocity then you will, by definition, fail 50% of the time). However, is it deluding us into thinking we’re a successful team and detracting us from more accurate measurement?
I think this comes down to how you measure success. Most people would agree that judging a development team on how many features they can deliver is fairly narrow minded. A development team includes a Product Owner, their remit should be to develop a product not to simply crunch features. If that was their goal then they could simply create huge numbers of easy, yet useless features just to score points.
In this new age of DevOps a Development Team should use their PO’s expertise and take ownership of the success of their product. For them to be judged on how much work they produce, rather than how much success they’ve had is a limited measure. It reminds me of the from the book The Goal where they measured and optimised the workstations rather than asking whether the system was effective.
Therefore, although shocked when I heard it I agree with Tom. Velocity is a useful tool for the team to forecast. But if it’s chased as a KPI or used to measure the team then it is indeed a vanity metric and will distract the team from trying to improve their product. If we want to measure our teams’ success then we should look at the metrics of our products, not try to calculate some kind of Hours to Story Point ratio or chase an ever increasing Velocity. We should focus on Number of Active Users or Number of Requests via the API, this will measure the teams’ success, rather than it’s productivity. As a friend of mine is fond of saying, effective rather than efficient.