Velocity as a Target
From Goodhart’s Law
Using story-point velocity to measure or compare team performance. Once velocity becomes a target, estimates inflate and the number stops meaning anything.
Why it happens
Velocity is an easy number to collect, so leaders reach for it to track productivity, set improvement targets or compare teams.
Why it backfires
Goodhart’s Law: when a measure becomes a target, it stops being a good measure. Story points are relative and specific to each team, so they can’t be compared. Under pressure, estimates inflate, people avoid helping others because it doesn’t “earn points”, quality corners get cut, and the number loses its only real use: helping the team forecast.
Warning signs
- Velocity appears in management dashboards or reports.
- Teams are compared or ranked by points.
- Targets ask for velocity to rise quarter on quarter.
- Items get re-estimated to hit a number.
If this sounds familiar
How to get out of it
- Explain Goodhart’s Law to the stakeholders who use velocity, with your own examples of inflation.
- Stop sharing velocity outside the team.
- Replace it in reports with flow and outcome measures.
- Consider dropping points altogether in favour of throughput-based forecasting.
Related forms
- Points-per-person targets
- An even more damaging form that turns estimation into individual performance review.
- Utilisation targets
- The same mistake applied to people’s time: keeping everyone 100% busy.
What it damages
Estimate inflation
You’ll notice A “3” becomes a “5”, and velocity rises while delivery doesn’t.
Fix Remove the target, and forecast from throughput.
Less collaboration
You’ll notice People avoid pairing, reviewing or helping, because it doesn’t count.
Fix Measure team outcomes, not individual output.
Quality shortcuts
You’ll notice Testing and refactoring get squeezed to “finish” more points.
Fix Hold to the Definition of Done, and track escaped defects.
Signs you’ve recovered
- Velocity no longer appears in reports outside the team.
- Estimates are stable over time.
- Conversations with leaders focus on outcomes and forecasts.
Instead, try
What it costs
- Setting up
- A conversation with leadership, and replacement measures.
- Ongoing
- None.
Sources
- Problems of Monetary Management: The U.K. Experience, Charles Goodhart (1975)
- “Improving ratings”: audit in the British University system, Marilyn Strathern (1997)
- Agile Estimating and Planning, Mike Cohn (2005)