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How do story points and velocity help in planning and forecasting within a Scrum Team?

As a Scrum Team accumulates data on how many story points they complete in each Sprint (their Velocity), they gain a powerful tool for future planning. By understanding their average Velocity over several Sprints, teams can Forecast their capacity for upcoming Sprints. This understanding helps in setting realistic goals and managing workload more effectively.

Product Owners can also use this data as a basis for Release planning and predicting progress towards milestone dates. With a clearer picture of the team’s Velocity, Product Owners can make more informed decisions about scheduling, resource allocation, and Project timelines. This predictive capability enhances the overall planning process, making it more strategic and aligned with the team’s actual performance.

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