This is a great blog post about why NOT to use Velocity as a measurement of team performance. I completely agree, and have seen this anti-pattern happen in the real world.
Danilo Sato: "It’s important to remember that velocity is a by-product of your current reality (your team, your processes, your tools). You can only improve your process once it’s stable and you know it’s current capacity. Velocity is just a health-check number that will tell your team’s capability. It will not tell you about how much value is being delivered or how fast you’re going. You can deliver a lot of points and make trade-offs on quality which, no matter how you measure it, will impact your ability to go fast in the long run."
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