Why cycle time is a better metric than velocity

Cycle time and velocity are two metrics commonly used to estimate and improve the efficiency of software teams, with cycle time often being considered the more valuable of the two. Velocity measures the average number of story points a team can complete in a sprint, which helps in planning but can be easily manipulated due to its subjective nature. In contrast, cycle time objectively measures how long it takes to complete a piece of work, helping teams optimize their processes by identifying and addressing bottlenecks. Cycle time also aids in spotting outliers, fostering discussions that improve planning accuracy. Additionally, it is directly linked to business outcomes, as teams with faster cycle times can deliver more value to customers and learn quickly from iterative processes. While cycle time provides a comprehensive measure when used alone, it should be balanced with other metrics to avoid neglecting other crucial aspects of productivity. The SPACE framework is recommended for selecting a balanced set of metrics to guide software team performance effectively. Swarmia offers tools to track such metrics and improve team efficiency through a trial period.