Velocity based on story points and measuring a team progress/productivity based on that velocity is a foundation-less metric. It may be okay for teams to do quick estimate which will save time and to move forward to focus on delivery of value, but any correlation to anything whatsoever with story points and measuring velocity will enable teams to spin around and make teams and organizations feel happy that they are agile; underlying dysfunctions will continue. On top of this to add fuel to dysfunctional behaviors, consultants and consulting companies find useful to use these buzz words of velocity to sell velocity to unsuspecting clients who really aspire to transform, to change, and to improve the bottom line of their business organization, but they end up following a mirage through the metric called velocity calculated based on the story points and, therefore, they will never be able to discover the true metric that is needed for their teams and organization.
Any velocity based metric based on story points will never going to help any teams or organizations to improve their bottom line.
What alternative you have on your plate that could help your teams and organizations to find right metrics and to avoid dysfunctions and to design your workflow, work processes, work execution? Explore TameFlow and Actionable Metrics