What is technical debt? Learn how to manage and reduce your tech debt

Imagine you’re building a house. Of course, you would like to start with a solid foundation. But as time goes on and you get tired, you decide to take shortcuts to finish faster. You skip some inspections, use cheaper materials, or even leave some wiring exposed. Do you have a result? Yes! Is this result with a high quality? We doubt that!

While it might seem like a good idea at that moment to skip some important stages, these shortcuts can lead to big problems later.

This is similar to what happens in software companies.

Technical debt is like those stages you’ve missed while building your house. It's the result of choosing easier solutions instead of doing things the right way. Even if it takes time! You think it helps you meet deadlines or save time now, but it causes serious issues in the future.

But no worries! By understanding how to reduce technical debt and manage it, you can improve your software and your team's productivity. Let's explore how.

UNDERSTANDING TECHNICAL DEBT

In order for you or your team to manage technical debt effectively, it’s crucial to understand what technical debt is and the different technical debt examples that exist. 

We’ve created a list of the main types of technical debt:

📌 Design debt

This happens when a system is designed too quickly or without enough planning. When teams rush to finish something, they might miss important design rules. This can make the system hard to fix or grow later on.

📌 Code debt

This is the most usual type of tech debt. It happens when developers rush to finish projects and write code that’s not very good. This might seem okay now, but it can lead to errors and issues down the line.

📌 Documentation debt

Good documentation is really important for any project. When teams don't write good documentation, it makes it hard to understand how the system works. This can slow down new people joining the team and make it harder to build on the project later.

📌 Infrastructure debt

This means using old technology that doesn't work well. For example, if a company uses old computers or doesn't use modern cloud services, it can't grow or change easily.

📌 Process debt

When things aren't done efficiently, work gets backed up and people aren't on the same page. If teams don't follow the best way to do things or don't have a clear process, it causes confusion and slows things down.

Now that we know the most common types of technical debt, let’s explore what causes it:

🔗 When time is short, teams might not do things the right way to meet the deadline. This can cause issues later on.

🔗 If teams don't understand the best practices or the future consequences of their decisions, they make choices that accumulate debts.

🔗 When things change quickly, businesses need to adapt fast. Sometimes, this means taking shortcuts that can cause problems later.

🔗 If there isn't enough budget or staff, teams might hurry to finish. This can lead to mistakes and create extra work later.

Understanding the types and causes of technical debt is the 1st step in managing it effectively. By recognising these elements, companies can create strategies to address and reduce their technical debt over time.

WHAT IS TECHNICAL DEBT IN AGILE/SCRUM PRACTICES

Agile and Scrum methods help teams deliver great work consistently. 

These methods are useful for dealing with technical debt. By dividing work into smaller tasks and always striving to improve, Agile and Scrum can help find and fix technical debt. 

Here's how these methods help to manage it. Agile and Scrum focus on delivering working software quickly, continuously improving it. 

Technical debt isn't ignored in these frameworks; it's actively managed. Teams prioritise and plan for tackling technical debt alongside new features. This approach benefits CEOs and CTOs by preventing small issues.

Agile mechanisms for managing technical debt

Agile and Scrum include several mechanisms specifically designed to manage technical debt effectively. They are:

✔️ Backlog management

In Scrum, we can add technical problems to our to-do list, along with new features. This helps us fix these problems as we work on new things. By putting these problems on the list, we make sure we fix them before they cause bigger issues.

✔️ Sprint planning

Teams plan their work for the next sprint by looking at their backlog of tasks. To manage technical debt, they can include some of these tasks in their sprint plan. This helps them stay on top of technical debt and avoid letting it get too big.

✔️ Definition of “Done”

Many Agile teams use a checklist to make sure their work is truly finished. This checklist includes things like code quality, documentation, and testing. By following this checklist every time, teams can avoid creating problems that will come back to bite them later.

✔️ Retrospectives

Retrospectives help teams look back at what worked well and what didn't in a recent project. This is a good time to talk about any technical problems that come up. Teams can use this to figure out what needs fixing and plan how to do it in the next project.

✔️ Continuous integration & testing

Continuous integration and automated testing are agile practices that help find problems early. By often merging code and running tests, teams can identify and fix issues before they get worse. This prevents the build-up of technical debt.

All the mentioned mechanisms help to make it easier to keep software flexible and scalable over time, enabling the business to stay responsive and competitive.

MEASURING TECHNICAL DEBT:

KEY METRICS AND EARLY WARNING SIGNS

To keep track of technical debt, you need to measure it. This helps you see how much debt you have and where it's building up. Here are some ways to measure and assess technical debt.

Code complexity metrics tell us how complicated our code is. The more complex, the harder it is to maintain and the riskier it becomes. Tools can measure things like how many different ways the code can run or its overall size to identify potential problems.

Code churn rate shows how much code is changed in a short time. A high rate can mean problems, like frequent fixes. This might signal deeper issues in the code that need fixing.

Technical debt ratio shows how much it costs to fix programming mistakes compared to building new things. A high number means more time and money is spent on fixing old problems instead of creating new features.

Code coverage measures how well your code is covered by tests. Low coverage means many parts are untested, which can lead to future issues.

Defect density shows how many errors are in each part of the code. More errors mean the code is worse and might have technical debt. We should check this to find parts that need fixing.

To measure tech debt effectively, we highly recommend you to use a combination of evaluation methods. They are:

Recognising early warning signs of accumulating tech debt can help you address issues before they even occur. Look out for these symptoms:

Slowing release cycles

If your team is struggling to meet deadlines or release updates, it may indicate that technical debt is piling up.

Increased support tickets

A spike in support tickets can signal that users are encountering issues with the software. This often points to underlying technical problems.

High defect density

If you notice more bugs or errors in your software, it could be a sign that the code quality is suffering due to technical debt.

Measuring technical debt and monitoring warning signs helps CEOs and CTOs manage it proactively. This prevents technical debt from slowing down company growth and innovation.

10 EFFECTIVE STRATEGIES

FOR MANAGING AND REDUCING TECHNICAL DEBT

Although tech debt happens sometimes, it's important to control it to avoid future problems.

Here are some effective strategies your dev teams can manage and reduce tech debt:

Strategy 1 - Check your code often

Look over your code regularly to spot and fix problems early on. Knowing your code will be reviewed can make you a more careful coder.

Strategy 2 - Test it yourself

Make your computer test your code for you. This way, you can find mistakes quickly. It also helps keep your code clean and safe when you change it. There are many tools to help you do this.

Strategy 3 - Refactor

Clean up old code without breaking it. This makes the code easier to fix, understand, and improve. Make sure to regularly set aside time to refactor your code.

Strategy 4 - Track tech debt

Keep a record of technical debt to make team members and stakeholders aware of it. Discuss how technical debt affects development speed and quality to make everyone responsible for fixing it. Ignoring technical debt is a major problem. To use it wisely, keep track of it and regularly talk about it during development.

Strategy 5 - Match business goals

Base your technical debt decisions on your business needs. Focus on the most important debt that fits your product plan and company vision.

Strategy 6 - Update technology regularly

Check software often and replace old parts to prevent problems from outdated connections.

Strategy 7 - Make code easy to understand and change

Use ways to break down your code into smaller, reusable parts and follow good design principles. This makes your code easier to fix and improve later on.

Strategy 8 - Share the code responsibility

Make everyone on the team responsible for the whole code. This way, everyone works together to keep the code clean and easy to understand.

Strategy 9 - Focus on writing the code clearly

Avoid making things more complex than they need to be. This will help prevent future problems.

Strategy 10 - Evaluate tech debt

Use tools to assess and quantify technical debt. This will help set targets for reducing it and track your progress.

REAL WORLD EXAMPLES OF MANAGING TECHNICAL DEBT

Real companies have tackled technical debt in different ways. These approaches have led to better software, quicker releases, and stronger business performance. We'll explore how leading companies manage technical debt and the benefits they've seen.

Spotify uses an agile approach to develop and manage technical debt. They don't let debt build up, but include debt management in their regular work. When planning their work, teams balance new features with fixing old problems. This helps Spotify's software stay flexible and grow quickly without major issues.

Etsy uses automation to fix technical problems before they get too big. They use automated tests and continuous integration to find and fix small issues quickly. This helps Etsy keep their platform running smoothly even as it grows.

Flickr is cleaning up its code to make it better. They're reviewing and fixing their code regularly. This helps them keep their code efficient and easy to manage. While it's not always exciting, this work is essential to avoid future problems. By investing in code quality, Flickr ensures their service remains stable and performs well, keeping users happy.

What are the lessons learned?

These businesses prove that tackling technical debt benefits both software quality and the company's bottom line. Here's how:

✅ Happier customers

✅ Quicker releases

✅ More efficient teams

These examples demonstrate that proactive technical debt management isn't just a technical concern; it's a strategic choice that drives growth, innovation, and customer satisfaction.

WHY MANAGING TECHNICAL DEBT IS IMPORTANT

Technical debt can harm software projects in the long run. Managing it is crucial for success. Here's TOP reasons why your development team should prioritise technical debt management:

Better code - easier maintenance. Quick fixes can lead to messy code over time. By keeping your code clean and organised, you make it easier to update and fix problems. This saves time and reduces the chance of new errors.

Improve team productivity. When there's a lot of technical debt, your developers spend too much time fixing old problems instead of creating new things. By managing this debt, your team can focus on innovation, which makes them happier and more productive.

Quicker release. A lot of technical debt can delay your new products and updates. By fixing these issues, you can speed up your development process, reduce roadblocks, and release your products faster. This quickness is important in today's competitive world, where being the first to release can give you a big advantage.

Save money in the long run. While shortcuts might seem cheap now, they can become expensive later. Fixing bugs and rewriting bad code takes time and money. By managing technical debt, you can avoid these extra costs and use your budget wisely. 

Keep users happy. Technical debt can slow down your software and cause crashes. By managing technical debt, you can keep your software running smoothly and make users happy.

Stay safe & legal. Quick fixes can leave your software vulnerable to attacks and legal trouble. Managing technical debt helps you fix security problems and follow the rules. 

Grow & adapt. Bad code can make it hard to add new features or fix problems. Managing technical debt keeps your software flexible, so you can change and improve it as needed.

Plan for the future. Managing technical debt helps you align your software with your business goals. This means your software can support growth and innovation, keeping you ahead of the competition.

ADDITIONAL CONSIDERATIONS AND FUTURE TRENDS

Managing technical debt is not just a technical task — it’s also a financial decision and a strategic one. Let’s take a look at how technical debt affects a company’s finances, some common myths, and the future of debt management.

Financial perspective

Technical debt can make a company spend more money. When the team spends time fixing old problems instead of creating new things, it costs more. This adds up over time, hurting the tech budget and slowing things down.

Many companies don't realise how much technical debt can cost. Fixing it might seem expensive at first, but it can save a lot of money in the long run. It's like investing to avoid bigger problems later. CEOs and CTOs need to understand this to plan budgets and allocate resources wisely.

Technical debt can be a major obstacle for companies. Here are some common misbeliefs about it:

Technical debt is inevitable

While some debt is unavoidable, it doesn't mean it should be neglected. Careful planning can minimise unnecessary debt.

Only developers care about technical debt

This is a false belief. Technical debt affects timelines, product quality, and user experience, which are all executive concerns. CEOs and CTOs should be aware of how technical debt impacts business goals.

Paying down technical debt is a waste of time

In fact, managing technical debt can make development faster and more reliable in the long run. It's not just about fixing old code, but also about improving future efficiency.

But anyway the future of managing technical debt looks bright with new technology and methods. There are some trends that could help your company manage and reduce debt better:

- AI can analyse code to find problems and suggest fixes, helping teams catch debt early.

- Automation tools like testing and CI/CD can quickly identify and prevent debt.

- Better documentation and knowledge sharing can improve code quality and reduce misunderstandings.

- Agile and DevOps practices can help teams manage debt as part of their daily work.

With these tools and strategies, your business will better handle technical debt.

CONCLUSION

Managing technical debt is essential for maintaining high-quality software and driving business success. By understanding its various forms, identifying the causes, and implementing effective strategies, CEOs and CTOs can enhance team productivity, reduce costs, and ensure a more agile and responsive development process.

Don't let technical debt hinder your growth; take the next step with expert guidance from Patternica to build a stronger foundation for your software projects. Reach out to discuss how we can help you effectively manage technical debt and set your company up for long-term success.