Velocity is a measurement of how many story points a software development team can finish within a sprint (usually one or two weeks). These points are set by the software development team when they review a ticket and estimate how complex the ticket is. When a team measures this output over a period of time, generally they have a consistent amount of story points they can deliver in a sprint and their velocity is known.
Improving developer velocity is directly correlated with performance. McKinsey published an article in April 2020, where they cite that companies in the top 25% on their Developer Velocity Index grow up to twice as fast as companies in their same industries. Intuitively, this makes sense since delivering more allows the development team to learn through iterating and improving.
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