In this blog post, Steve Andrews discusses the usage of team velocity to plan the next Scrum sprints and how can we use it to make more informed management decisions. Using a quantitative management approach and Agile methods allows us to actually measure the impact of management decisions on the team’s output. He describes the case where the team had a major spike in velocity in one iteration. The cost seems obvious: the team ended up having diminishing returns on velocity in subsequent iterations. It shows that when you work a team unnaturally hard, they will not be able to maintain that level for very long.