Product Line Velocity

Product Line Velocity Definition:

A measure of a product line’s performance.  The line’s velocity is the change over a time period toward a product line’s objectives and key results (OKR’s related to Cash Flow, Customer Satisfaction, and Competitive Position.)  The velocity is the speed at which the product line’s system progresses or flows from point A (a current state) to point B (a future state) relative to specific OKR’s. Product Line Velocity combines the speed of movement with the direction of that movement.

Product line management and oversight influences and guides the product line system to affect the line’s velocity. A product line’s performance shows as positive or negative velocity, and the line’s velocity may be accelerating, decelerating, or remaining steady.  Accelerating positive velocity reflects great performance. Accelerating negative velocity reflects dangerously poor performance.

Product Line Velocity Example

A product line’s free cash flow might change from $1.25USD million to $3.5USD million over a six month period. In this case, the Product Line Free Cash Flow Velocity is $4.5 USD Million per year.  To reveal the full product line velocity, Cash Flow Velocity is then combined with measures for Customer Satisfaction Velocity and Competitive Positioning Velocity.

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