Ah, the wonderful meaning of velocity. Velocity is often interpreted as a fixed development speed, and increasing the velocity means a higher development speed. What some people do not understand is that velocity and days (FTE etc.) and currencies with a floating exchange rate. When prompted to increase velocity, a team could simply estimate higher number for each story, increasing the velocity while keeping development speed constant or even lower.
Please refer to the article Increase My Velocity, Baby! for lovely unicorn images.