Velocity, in the Agile sense of the word, is a measurement of the number of user stories completed in a period of time. I’m very new to the concept, but I’m immediately skeptical for the following reasons:
Technical debt is nowhere represented in the velocity model. In fact, optimizing for short-term velocity will tend to accumulate technical debt. The incentive here is toward shortsighted implementations that will satisfy the acceptance criteria, with less care taken to accommodate future requirements.
Because velocity can be so misleading, it is often abstracted away from stakeholders. The measurement also tends to be too technical to be exposed to corporate officers. Given that velocity will tend to be used internally within a development group, why not express more of the complexity and uncertainty of the development process?