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Pivotal Tracker is a story-based project planning tool used by teams to track work. It uses agile methods to maximize team velocity rather than individual points. The key elements in Pivotal Tracker include stories which represent tasks, labels to organize stories, releases to mark milestones, and charts to visualize progress. Stories go through states like estimate, work in progress, and done. Velocity is calculated based on the average points of accepted stories over recent iterations to estimate how much work can be completed. The tool allows multiple people like designers and developers to work on the same story. Product managers use it to prioritize and estimate stories for upcoming iterations and sprints.