Aligning Technical Debt improvements to business improvements

Technical debt—a term often discussed but less frequently addressed effectively—is often cited by technology leaders as one of the biggest drains on resources, cost and innovation. In fact, McKinsey research identifies that it accounts for about 40 percent of IT balance sheets with 30% of CIOs believing that more than 20 percent of their technical budget ostensibly dedicated to new products is diverted to resolving issues related to tech debt.

But what is technical debt, how can it be quantified in relation to business KPIs and how can CTOs and other tech leaders create a sustainable strategy to tackle it as part of a wider modernisation initiative? 

To start, let’s define what technical debt is. Codurance co-founder Mash Badar offers a clear definition:

“Anything that either creates operational inefficiency or poses a material risk to the business where the root cause is software or the way software is delivered.”
Mash Badar, Codurance Co-Founder and Managing Director

Now we have a definition of what technical debt is, the next step is to create a plan with the business to identify where the key areas are that need improving, resulting in a strategy that can be implemented in the short, medium and long term. 

To help you get started, we’ve gathered insights from the hundreds of client projects Codurance has delivered where technical debt has been identified and improved.

Use these ideas to start shaping your own business case for change.

1. Technical Debt: Both a Challenge and an Opportunity

Technical debt often accumulates as organisations prioritise rapid delivery over long-term stability. However, not all debt is equal. Like financial debt, some forms of technical debt can be managed over time, while others pose immediate risks to system reliability, revenue, or reputation.

Key takeaway: Categorise and prioritise technical debt to focus on the most impactful areas first. For instance, tying defects in production to outages and lost revenue can make the case for immediate intervention clear.

2. Articulate the Business Value of Addressing Technical Debt

One key challenge that must be successfully achieved is around gaining organisational buy-in, particularly from non-technical stakeholders. Successful CTOs are able to frame the importance of technical debt in business terms—focusing on risks, costs, and the ability to support future business change, all underpinned by data and metrics to demonstrate the ROI.

Practical advice:

• Avoid technical jargon; instead, discuss the why in terms decision-makers understand.
• Use concrete metrics, such as the frequency of production defects or delays in feature delivery, to demonstrate the ROI of reducing technical debt. The DORA metrics would be a good approach for this. 

3. Align Technical Debt Strategies to Growth Stages

The approach to managing technical debt varies significantly depending on an organisation’s growth stage and industry; for example, some technical debt is tackled as a priority due to regulatory requirements such as in healthcare or financial services (see our eClinicalWorks case study for example). For startups, the focus may be on enabling rapid feature delivery, while mature organisations might prioritise reducing operational inefficiencies and minimising risk.

Technical debt often manifests in different ways—whether it’s outdated codebases, undocumented systems, or process inefficiencies. Regardless of the context, addressing it requires a tailored approach aligned to business goals.

4. Execution Matters: Skills, Mindset, and Measurement

Addressing technical debt isn’t just about allocating time; it’s about ensuring the right people with the right skills are involved. There can be a danger of overly simplistic approaches, such as carving out time without clear plans or goals.

Best practices:

• Define the problem clearly and identify the skills gap.
• Measure progress before, during, and after interventions to validate ROI. 
• Approach debt reduction like any other project—with clear KPIs and governance.

For example, if feature delivery is slow, focus on improving deployment processes. Success can be validated by tracking the increase in new features reaching production.

5. Build a Culture to Prevent Future Debt

Technical debt is as much about culture as it is about code. Fostering a mindset of long-term thinking and quality can help prevent future accumulation. However, be aware that the people who created the debt may not always be best positioned to fix it, due to ingrained habits or defensive attitudes.

Encouraging collaboration, transparency, and learning across teams can help create a proactive culture where technical debt is consistently managed.

Final Thoughts: Selling the Case for Technical Debt Reduction

Perhaps the most significant challenge in tackling technical debt reduction is in “selling” the importance of this initiative to boards and senior executives. CTOs and other tech leaders need to balance advocating for long-term stability with delivering short-term business goals.

“Technical debt management must be sustainable and make business sense. Without a well-defined plan and measurable outcomes, it’s nearly impossible to gain buy-in.”
Mash Badar, Codurance Co-Founder and Managing Director

Ultimately, managing technical debt is a balancing act—one that requires clear articulation of risks and opportunities, alignment with business goals, and a sustained commitment to execution. Tackling technical debt effectively isn’t just about maintaining systems; it’s about enabling growth, innovation, and resilience in an ever-changing business landscape.

Are you grappling with technical debt in your organisation? Read our success stories to learn how Codurance helps build tailored strategies to manage and reduce technical debt while driving measurable business outcomes.