Tech debt - the good, the bad, and the neutral - and how it affects business

Software is a big part of our business - how do we determine when to upgrade our tech stack?

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Hey there, it’s Meighan! Welcome to ⚙️Ops+Bots my newsletter where I share insight into technology, creating better systems, and running an online business.

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Today I want to talk about something I’ve been thinking a lot about lately: tech debt. 

If you’re a creator or small business owner you most likely have some form of tech debt in your business with the software you use. Let’s discuss what this is, how it affects us, and how to mitigate its negative effects.

What is tech debt?

Before we dive into how tech debt affects us we need a brief history lesson.

In software development technical debt, in the simplest terms, is what happens when speed (or scaling) is prioritized over code. 

The term was first used by Ward Cunningham, an American computer programmer. (Fun fact: he developed the very first wiki, and also wrote the Agile Manifesto.)

Here’s what he said about technical debt in ‘92:

"Shipping first time code is like going into debt. A little debt speeds development so long as it is paid back promptly with a rewrite... The danger occurs when the debt is not repaid. Every minute spent on not-quite-right code counts as interest on that debt. Entire engineering organizations can be brought to a stand-still under the debt load of an unconsolidated implementation, object-oriented or otherwise." — Ward Cunningham, 1992 [Link: https://en.wikipedia.org/wiki/Technical_debt]

The Reader’s Digest version: developers may take shortcuts to build the product to get it to market faster, and in doing so the code may be error prone, not as efficient, etc. If not addressed, issues can arise down the line.

Ok, so let’s bring it back to us and how it shows up in our businesses.

Why it matters

I first heard the term tech debt from Luca Rossi, in his exceptional newsletter Refactoring, a community geared towards engineers and founders. I’m not an engineer, but a lot of what Luca discusses interests me. He did not disappoint when I learned about tech debt from his writings. It sent me down a rabbit hole of research and I’ve been thinking about it ever since. 

When Luca used the term interchangeably with building code and using technology - he referred to things he’d change in his Notion workspace as tech debt. Inferring there are things he would change in his set up, but he doesn’t have the time or the capacity to do so. 

This is when I realized that tech debt or what some people refer to as technology debt (you’ll see these terms used interchangeably) affects the clients I work with all of the time. I just never had a word for it. It’s something I have struggled with for years to convey to my clients.

Why does this matter? We all have technical debt in our businesses. Depending on what it is, there can be good, bad, and neutral tech debt. Debt that supports us and hinders us. Tech debt is not inherently bad. It’s part of doing business today.

Much like credit card debt, tech debt can allow us to move the business forward. We take away from one area to help us in another. But like credit card debt, if not tended to, it can turn into bad debt.

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How it affects us: types of tech debt

It’s important to understand where and what each type of tech debt is so we can mitigate racking up bad debt that hurts the business. 

Bad tech debt

Starting out in business, we use software that we can afford, right? We jury rig systems and make them work. Often using technology for something it was not created for. Bad tech debt is when neutral tech debt starts to impact the business through inefficient client onboarding and delivery that lead to costly mistakes.

I’ve worked with a lot of businesses that use what they have. This is common and the right thing to do. During this period their focus is on their product and services - making sure they build the front end of the business. It doesn’t make sense to spend money or resources on tech that isn’t needed because the back end isn’t a priority yet - there’s nothing to work on and it’s not impacting the business. 

A good example of this: using a spreadsheet for everything in a business that has multiple team members. It’s not a good solution for a variety of reasons. It may *work* for some people on the team, but overall it’s a patch for a job that’s better done by other software. It hinders the team in the long run by creating more work and eating up time.

A few examples of why spreadsheets aren’t great tools for managing a business:

• Comments get hidden

• There’s no real notification system

• Formulas break and become confusing

• Communication becomes stifled

• Work is impacted due to the focus on a tool that doesn’t do the job

(I’m specifically referring to when spreadsheets are used for anything other than what they are intended for.)

It’s funny because it’s so common!

This is bad tech debt. The tool that’s being used no longer works for what it was intended to do. Overtime it starts to impact the business negatively.

Bad tech debt can hurt businesses in ways that are not totally clear in the moment. The tool sort of works, people on the team make do, but eventually this will start to eat up time and resources. Errors and inefficiencies start to affect the client’s experience and the team's morale.

This is when it’s time to reevaluate the tech that’s being used and trade up for a tool (or tools) that work for what they’re intended to do.

Neutral tech debt

One of the big reasons I’ve been thinking about this subject is because Zoom recently raised its prices, and I’m seeing a lot of talk online about leaving it and looking for a new meeting platform. 

We all know Zoom is annoying af. But it’s the leader in the industry for video conferencing that works at a good price. This is neutral tech debt - you’re using what you have at your fingertips to move things forward.

Would I love a tool that doesn’t update literally every single time I turn it on? Yes. Or doesn’t have a friggin’ mine field of settings? Yes. But I don’t have the time, mental bandwidth, or literally the energy to try and find a better tool. Because right now, there isn’t one. It checks all the boxes. Sure there’s Butter, Whereby, and Sessions - all promising. But I’m not going to explore these because there is no need for me to right now. Zoom does what I need it to do.

This is a form of technical debt for me. I choose to use a tool I don’t love because I rather spend my time and energy fixing problems that need fixing today.

Good tech debt or shiny object syndrome?

Good tech debt is when you may opt for software that you can live with out, can’t really afford, and/or really need at the moment, but it will deliver an experience that matters to you and move the business forward quicker.

Think of a more robust course platform or email service provider - because these give you powerful tools like automations, integrations, and better UX for delivery. You’re willing to spend money and resources to use this tool because it will pay out over time with the experience. It allows you to scale the business quicker. Incurring this debt is the right investment.

However, good tech debt can quickly veer into bad tech debt. 

Where people go wrong is spending too much time tool hopping and trying out all the tools. Looking for solutions to problems they don’t have. I have been just as guilty of this, so I know it intimately!

It is so easy to get distracted by that new shiny object that everyone is talking about. We all think that technology will solve our problems. And while it certainly helps, moving to new tech, getting up to speed, and using it to its fullest can take a lot of time and resources. This impacts the business by taking away resources and focus from a more important area of the business (usually product development and/or delivery).

How do we figure out which is which?

When you’re starting out, the most important thing for you to focus on is your product and delivering that product in the best way possible. That’s it. It doesn’t make sense to go for the big guns with tech yet until you know you have a viable product and a customer base.

The only time you should start to think about acquiring or moving to new tech is if that tool is going to solve a problem you have at the moment.

That’s it. That’s the only question you need to ask yourself: will this solve a problem I currently have in the business?

Other follow up questions if that doesn’t help you decide:

• How much time is it going to take to set up and learn?

• Do I need to hire someone to do this for me? And if so, what’s the cost? Will I be up and running or will there still be a learning curve?

• Do I have the time and money to do this right now?

• How will this impact my goals and plans for the next 90 days?

I love software. I literally pivoted my business in 2018 so I could professionally tool hop and tell people about it. But I can tell you that I learned a lot prior to that. Tool hopping is a giant waste of time, and if you’re not careful it can affect your business in ways you may not realize until it’s too late.

It’s so easy to think technology is going to solve our problems, but the reality is technology only helps us do our jobs better, not do them for us. The next time you see that new cool tool that everyone is talking about seemingly everywhere, ask yourself: how will this solve a problem today for me? AND is this a problem I truly have. 😉

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If you need some help figuring out tech debt I can help you reevaluate your tech stack. I offer two services to help: my 1:1 Strategy Session to dive deep into one tool or my Tidy Your Tech service where I review your tech stack and help you refine a process.