In the context of agile, what does the term "velocity" refer to?

Velocity in Agile refers specifically to the amount of work completed by a team in a single iteration, typically measured in story points or tasks. This metric is crucial for understanding how much work a team can realistically accomplish within a given timeframe, thereby allowing for better planning and forecasting in future iterations.

Measuring velocity helps teams gain insights into their performance over time, enabling them to adjust their capacity estimates and improve their estimation accuracy. By focusing on the tangible output of completed work rather than just the speed of task completion or overall team performance, teams can create a more effective and collaborative planning environment.