What is tech debt and why does it matter?

Stewart Masters · 30 Jun 2026

Tech debt refers to the accumulated cost of shortcut decisions made during software development — code written quickly to meet a deadline, systems integrated without proper architecture, features built on top of foundations that weren't designed to support them. Like financial debt, it accrues interest: the longer it's left, the more expensive it becomes.

Why it matters to leadership, not just developers

Tech debt is not a developer problem — it's a business problem. It manifests as slower product development (everything takes longer because the codebase is harder to work in), higher costs (maintaining complex systems costs more than maintaining clean ones), increased operational risk (fragile systems break more often and are harder to fix), and difficulty attracting and retaining good technical talent. When leadership hears 'we need to slow down to fix the foundations', tech debt is usually the reason.

How to manage it

Tech debt is inevitable in fast-moving businesses — the goal is not to eliminate it but to manage it consciously. That means making deliberate trade-offs (choosing speed now with a clear plan to refactor later), allocating regular capacity for technical improvement rather than treating it as optional, and making the cost of tech debt visible to leadership and the board so decisions are made with full information.


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The most expensive tech debt is the kind leadership doesn't know they have. Making it visible is the first step to managing it responsibly.

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Stewart Masters

Strategic advisor to founders and operators. Chief Digital Officer at Honest Greens. Guest lecturer at IE Business School and ESADE. Based in Barcelona. Connect on LinkedIn →

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