Dealing with technical debt

Technical debt – the silent companion of modern software development. Like financial debt, it can be both a strategic tool and a crippling burden. According to recent studies, technical debt now accounts for up to 40% of companies’ technology estates, making it a critical concern for businesses of all sizes.

Understanding Technical Debt

Technical debt represents the gap between your system’s current state and its ideal state. It’s not merely “bad code” or outdated software, but rather a deliberate choice reflecting your organization’s priorities and ambitions. Just as financial debt can be used strategically to invest in growth, technical debt can be a conscious decision to accelerate delivery or adapt to changing circumstances.

The Cost of Unmanaged Technical Debt

Unaddressed technical debt can have severe consequences:

• Development velocity slows significantly
• Maintenance costs increase substantially
• System reliability decreases
• New feature delivery becomes increasingly difficult
• Team productivity and morale suffer

According to research, more than 50% of companies spend greater than a quarter of their total IT budget dealing with technical debt. This isn’t just wasted resources – it’s opportunity cost that could be spent on innovation and growth.

Effective Management Strategies

1. Quantify Your Debt

Rather than using vague terms like “tech debt,” focus on measurable indicators:

• Track maintenance load: the percentage of time spent on non-feature work
• Monitor Service Level Objectives (SLOs) and error budgets
• Measure lead time for changes to reach production
• Record change failure rates engineering.backmarket.comengineering.backmarket.com

2. Establish Feedback Loops

Create multiple layers of feedback to identify and address technical debt early:

1. SLO-based Monitoring

• Set clear service level objectives
• Establish error budgets
• Trigger interventions when budgets are depleted

2. Incident Reviews

• Conduct thorough post-incident analyses
• Document root causes
• Create actionable follow-up items
• Implement preventive measures within 30 days

3. Lead Time Tracking

• Monitor time from commit to production
• Focus on trends rather than absolute numbers
• Work to reduce deployment friction

3. Build Organizational Awareness

Make technical debt visible across departments:

• Present metrics in business terms
• Demonstrate impact on feature delivery
• Show correlation with operational costs
• Involve cross-functional teams in planning

Best Practices for Implementation

1. Start Small

• Begin with high-impact, low-effort improvements
• Build momentum through quick wins
• Document successes to justify further investments

2. Focus on Prevention

• Implement robust code review processes
• Maintain comprehensive documentation
• Practice continuous integration and delivery
• Regular architectural assessments

3. Create Sustainable Processes

• Integrate debt management into regular workflows
• Allocate dedicated time for maintenance
• Review and adjust strategies regularly
• Celebrate successful debt reduction initiatives

Common Pitfalls to Avoid

1. One-size-fits-all Approaches

• Context varies between teams and projects
• Solutions should be tailored to specific situations
• Local ownership is crucial for success

2. Fixed Metrics Targets

• Avoid arbitrary thresholds (like “zero bugs”)
• Focus on meaningful improvements
• Emphasize continuous progress over perfect metrics

3. Percentage-Based Allocation

• Don’t mandate fixed percentages for debt repayment
• Adapt effort based on context and urgency
• Balance with feature development needs

Conclusion

Technical debt management isn’t about achieving perfection; it’s about maintaining a sustainable pace of innovation while ensuring system health. By understanding debt as a strategic choice rather than a necessary evil, organizations can transform it from a liability into a manageable aspect of their development process. Remember that effective management requires continuous effort, clear metrics, and organizational alignment. Start small, measure carefully, and iterate regularly – the goal is progress, not perfection.