## Another one on calculating an Initial Velocity

This is adapted from http://bit.ly/1o8yysf

Velocity is a very simple method for accurately measuring the rate at which teams deliver business value. To calculate velocity, simply add up the estimates of the features successfully delivered in the last sprint or iteration. What about the initial iteration?

Terms to understand when calculating initial velocity:

[1] Number of Developers – How many developers will you have doing actual work?

[2] Capacity – What is the maximum amount of work one person can accomplish in an ideal situation during the iteration?

[3] Number of Iteration Days – How many work days are in the iteration?

[4] Load (Capacity) Factor – The ratio of the actual work output over a period of time and the output if the developer had operated at full capacity over that time period. e.g. 1/3 = 2.4 Hours , 1/2 = 4 Hours, 1/1 = 8 Hours

[5] Velocity – How much Product Backlog value a team can deliver in one iteration.

Because you don’t know team velocity for the first iteration, plan initial velocity at one-third of total capacity in order to account for coffee breaks, design, email, meetings, rework, research, etc. As an example, with seven (7) developers and at one-third (1/3) capacity, a total of 2.1 ideal developers are available. Multiply the number of ideal developers by the number of work days to arrive at the total of ideal work days. These ideal work days will be applied against your estimated features, to arrive at an initial velocity.

(7 [Developers] * 1/3 [Load Capacity Factor]) * 21 [Work Days] = 44.1 [Ideal Work Days]

Happy Scruming….

Cheers

## Initial Velocity

There are occasions when one needs to predict team velocity when there is no historical data available. Here is a good example of how we can establish an initial velocity. This has been adapted from Crisps Blog pages.

“This is how you can get started. Take a well known task/story as your standardised benchmark. If this a rather small story, set it to two story points so you have room for smaller stories. Estimate the rest of the stories relative to this.

Before our first planning meeting we need to know our velocity so we know how much we can commit to. But we don’t have that since we don’t have a history.

To get an initial velocity for our first sprint, we estimate the selected standard story in ideal man days. Let’s say the story is 2 story points and 4 ideal man days, we then know the team can handle 1/2 story point per ideal man day. Use the focus factor to convert ideal man day to calendar days. The focus factor is typically between 50% and 70% depending on the amount of support and interruptions. If the focus factor is 50% we can handle 1/4 story point in a calendar day (1/2 * 50%). If the team consist of five people and the sprint is 14 days we have 70 calendar man days in the sprint. 70 * 1/4 gives that we should be able to bring 17 story points into the sprint. Finally we have our initial velocity.”

Hope you liked it.

Cheers!!! Happy Scrumming.