How Can Organizations Strategically Address Technical Debt
Technical debt isn’t some mythical beast. It’s real, and it’s lurking in every organization. The term itself refers to the shortcuts we take in our IT systems. You know...those workarounds and quick fixes that we promise ourselves we’ll come back to but never do. Over time, those shortcuts accumulate into a mountain that can’t be ignored. Whether it’s outdated systems, unpatched software, or fragile infrastructures, technical debt eats away at our ability to be efficient and secure. So, let’s dig into how we, as leaders, can tackle this beast head-on.
What is Technical Debt?
Let’s start with the basics. Technical debt is, in simplest terms, the cost of putting off improvements to your technology. Maybe you chose an older system because it was cheaper or faster to implement. Maybe you skipped a patch because the team was overloaded. Or maybe you didn’t document a workaround because it seemed minor at the time. Each of these decisions adds up.
Here’s the thing: yesterday’s state-of-the-art tech can become today’s liability. What was once innovative is now holding us back. For example, how many of us are still running Active Directory as the backbone of our identity management? We all know it’s riddled with vulnerabilities, but migrating off it to Entra-ID feels like scaling Everest without oxygen. That’s technical debt in action, and ignoring it will cost us more in the long run.
Why Does It Matter?
Some of you might be thinking, “Why worry about it? We’ve got bigger fires to put out.” I get it. But here’s the truth: technical debt is like termites. It’s not immediately obvious, but it’s slowly eating away at the foundation of your organization. One day, it’ll all come crashing down, and that’s not the day you want to start addressing it.
Unchecked technical debt can:
How Do We Start Addressing It?
Okay, let’s get practical. Dealing with technical debt isn’t glamorous, and it’s not a one-and-done project. It’s a journey, and like any journey, it starts with a single step. Here’s how you can begin:
1. Create a Technical Debt Inventory
You can’t fix what you don’t know exists. Start by cataloging all the technical debt in your organization. This includes legacy systems, unpatched software, undocumented workarounds, and even outdated processes. Get input from all teams, engineering, operations, security, and even end-users. The more comprehensive your inventory, the better.
2. Prioritize Based on Risk and Impact
Not all technical debt is created equal. Some issues are minor annoyances, while others are ticking time bombs. Use a risk-based approach to prioritize. Which systems are most critical to your business? Which vulnerabilities pose the greatest threat? Focus on the high-impact items first.
3. Embed Technical Debt Management in Your Processes
Make addressing technical debt a part of your ongoing operations. For example, dedicate a percentage of every sprint to tackling it. This ensures it doesn’t keep piling up while you’re busy chasing the next big thing.
4. Standardize and Simplify
A big source of technical debt is the lack of standardization. When every team uses its own tools and processes, managing it becomes chaotic. Consolidate and standardize wherever possible. Fewer tools mean fewer headaches.
5. Communicate the Business Impact
This one’s critical. Most executives don’t care about the tech details; they care about how it affects the business. Frame technical debt in terms of cost savings, reduced risk, and improved efficiency. For example, instead of saying, “We need to upgrade our servers,” say, “Upgrading our servers will reduce downtime by 30%, saving us $500,000 a year.”
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Tackling the Culture Problem
Let’s be real: part of the reason technical debt grows is because of organizational culture. Too often, there’s a “move fast and break things” mindset. New features and projects get all the glory, while maintenance is seen as a thankless chore. We need to change that.
Here’s how:
The Role of Governance
Governance is your best friend in this fight. Without it, technical debt becomes everyone’s problem and no one’s responsibility. Establish clear processes for identifying, tracking, and addressing it. For example:
The Hard Truth About Auto Manufacturing and Other Verticals
Let me share an example from the automotive industry. Auto manufacturers often rely on production line equipment that’s decades old. These machines are essential for operations, but their software is often outdated, and spare parts may no longer be available. Replacing these machines can cost millions and disrupt production schedules, so manufacturers keep them running with patchwork fixes and third-party support. While this approach works in the short term, it creates layers of technical debt that make the entire system more fragile over time.
Every vertical has its unique challenges. For an automaker, acquiring a struggling supplier can mean inheriting outdated systems and unsupported software. To avoid disruption, they integrate these systems into their own infrastructure without modernizing. The result? A ticking time bomb of technical debt that’s hard to track and even harder to fix. The key is to recognize these risks early and allocate resources to mitigate them, even during high-pressure times like model launches.
Small Wins, Big Impact
Dealing with technical debt can feel overwhelming, but you don’t have to tackle it all at once. Start small. Fix that one system that’s causing constant headaches. Each small win builds momentum.
Remember, this isn’t just an IT problem; it’s a business problem. And like any business problem, it requires a strategic approach. You won’t eliminate technical debt entirely, but you can manage it in a way that reduces risk and keeps your organization moving forward.
Closing Thoughts
Addressing technical debt isn’t just about cleaning up the past; it’s about building a stronger future. It’s about creating an environment where innovation can thrive without being held back by the ghosts of decisions past. So let’s roll up our sleeves and get to work. Together, we can turn this mountain of debt into a stepping stone for success.
Let’s get out there and make it happen.
References
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You give a nice, holistic perspective here on technical debt, Mark. I especially liked your points on showing the measurable business impact and reserving sprint capacity to clear it. I'm curious, without getting into the blame game, do you think organizations with self-managing teams can systematically recognize and prevent much tech debt? Once an organization has established a common practice of tracking it, what could strategic prevention look like?