How to Tackle Technical Debt: A Guide for CTOs

If you have been in the IT industry for any period, you may have encountered the term ‘Technical Debt’. Also known as ‘design debt’ or ‘code debt’, the phrase is widely used in software development.

Technical debt typically occurs when developers opt for a more limited solution than what was initially promised, often to save time and deliver code faster. However, that task or ‘debt’ needs to be revisited and completed later, to let the project run successfully in the long run. This concept is borrowed from financial debt wherein an individual borrows from a lender and agrees to pay back the borrowed sum with interest.

Technical debt is a compromise between quality, efficiency, speed and market delivery. While some amount of technical debt is inevitable and acceptable, the real problem appears when the team doesn’t repay that technical debt in a timely manner. And just like financial debt, the longer it takes to repay that debt, the tougher it gets to manage it, and the clumsier your project or tasks will be at the end.

Why does technical debt matter to CTOs?

Technical debt is one of the most pressing concerns for CTOs since its cost implications are multifaceted and can be felt across the organization, both horizontally and vertically. It can reduce the business value of a product by limiting its functionality, usability, and maintainability. It can lower the team morale by increasing the developers’ frustration, stress, and burnout. Moreover, it can also expose the system/project to more threats and malicious attacks, resulting in higher costs, liabilities, and reputational damage.

According to a survey by KPMG, an incredible 70 percent of organizations have suffered at least one project failure in the previous 12 months, whereas 50 percent said their projects had not accomplished what they set out to do due to technical debt. These failures speak volumes and clearly demonstrate that there is a considerable risk involved that needs to be taken very seriously.

Therefore, CTOs must be aware of the current state and the future implications of technical debt in their products and teams. They must adopt effective strategies to manage, measure, and reduce technical debt.

How to manage and escape the black hole of technical debt

Conduct regular code reviews to identify and address potential technical debt early in development. It will help you catch issues, ensure compliance with coding standards, and encourage knowledge sharing among team members. Additionally, when developers realize that their code will be reviewed, they tend to pay detailed attention during the coding process.

Automated testing allows developers to identify and fix code problems quickly, reducing the accumulation of technical debt. Moreover, with automated testing, developers and testers have to spend less time on the entire testing process, which they can utilize for performing critical tasks or creating new features.

Incorporate code refactoring 

Code refactoring is another worthy strategy for reducing technical debt. By regularly revising and improving existing code, you can prevent the accumulation of technical debt. It can further improve the overall quality and maintainability of your codebase.

Refactoring is essential for maintaining the longevity of the code. If the tech team doesn’t perform refactoring on a regular basis, technical debt might creep into the system anytime.

Keep track of technical debt and document it

Create a centralized document or tool where all instances of technical debt are recorded and tracked. Communicate about the same to increase awareness among team members and stakeholders. It will help everyone make informed decisions about the quality, productivity, and maintenance costs over time.

Regularly assess the technologies/infrastructure used

Assess the existing technology and infrastructure regularly to track a system’s useful life and flag equipments that have become significantly deficient. This particular auditing process can be handled by the IT and finance team members together. This practice will help improve efficiency and accuracy.

Improve the team’s knowledge and skills

Upskilling/reskilling is another crucial step in alleviating technical debt. Organize training and development programs for team members and encourage them to stay updated with the latest trends in the tech environment. A highly competent workforce will help you implement new solutions swiftly and elevate the quality of your work to the next level. 

Use technology partner services

If your company is struggling with technical debt, choose a partner that has experience in managing technical debt. Most companies with such experience will be able to address your technical debt at an early stage further helping you save time and resources. These companies usually have a process to manage the technical debt, which helps ensure it is dealt promptly and precisely. 

Navigating the realm of technical debt is like being a detective on a tech mystery case. You are on the lookout for clues, patterns, and anomalies that hint at any underlying issues. The end goal is to take control of it early before it spirals into unmanageable chaos.

According to Gartner, companies that effectively manage their technical debt can deliver services and solutions at least 50% faster. Moreover, Garner adds that by 2025 companies will spend 40% of their IT budgets on maintaining technical debt rather than innovation.

To conclude, technical debt is not just an IT issue. Instead, it’s a critical concern that affects the entire business. This debt is like an interest-bearing loan. It is less expensive upfront but has a long tail that ultimately inflates the principal. However, by incorporating the right strategies throughout the project lifecycle, CTOs can navigate the complexities of technical debt with confidence and precision, ensuring the long-term success and sustainability of the projects.

In brief

Handling the intricate pathways of technical debt might seem like a daunting task. However, when armed with the right strategies and a proactive mindset, triumph is within reach.