technical debt

Companies all over the world are embracing digital transformation — the use of new (or already existing) technological capabilities — as the means to better work with their customers, distance themselves from (or keep up with) their competitors, and connect various aspects of their businesses. But to succeed in this endeavor — or even to simply get the most from their current tech — they must rid themselves of a heavy burden: technical debt. Put simply, technical debt occurs when you choose an imperfect short-term solution that will require a more substantial fix later, and includes disparate systems, added software to accommodate them, and added effort to work around them.

Because technical debt is the result of shortcuts — choosing quick fixes over a long-term investment — it causes plenty of problems in the here and now. It adds enormous friction any time people need to coordinate work together across silos. There’s also the ongoing expense to exchange data between systems; the unquantifiable costs associated with being slowed down by your systems, whether you’re in the midst of digital transformation or responding to a competitor’s move; and the price you must eventually pay to redesign and simplify systems. And technical debt and its costs compound over time.

At first blush, executives may dismiss technical debt as the province of their IT departments. That conclusion camouflages the root cause of the issue, however. In truth, technical debt stems from the way the businesses are structured, and how departments develop their own systems and languages for getting their work done.

Effective Digital Transformation Depends on a Shared Language, by David C. Hay, Thomas C. Redman, C. Lwanga Yonke, and John A. Zachman. Harvard Business Review. December 14, 2021