What is velocity and why should it not be used as a KPI?

Velocity is a metric in Agile that shows the amount of work (usually in story points) completed by a team in a single sprint. It helps in planning future sprints and assessing the team's speed.

Why shouldn't velocity be used as a KPI:

• Velocity only reflects the amount of work completed, not quality or value for the business.
• It depends on the team, its composition, and task estimates, so it is not comparable between different teams.
• Focusing on increasing velocity can lead to artificially inflated estimates or the completion of less important tasks.
• Velocity is an internal planning tool, not a measure of product effectiveness or success.

It is better to use more comprehensive metrics that consider quality, user satisfaction, and business goals.