Last updated on June 16th, 2021 at 01:55 pm
Some projects undergo budget depletion exercises when their budgets are reduced, or when there’s evidence that the funds remaining will be insufficient to complete the work originally planned. Formats vary, but the typical goal of these exercises is downscoping—removing, relaxing, deferring, or suspending some requirements. Since funds are limited, downscoping is often executed in a manner that leads to technical debt.
Here’s an illustrative scenario. At the time downscoping begins, the work product might contain incomplete implementations of items that are to be removed from the list of objectives. A most insidious type of debt, and most difficult to detect, consists of accommodations contained in surviving artifacts that are no longer needed because the items they were intended to support have been cancelled. This class of technical debt is difficult to detect because the affected system components appear to be merely overly complicated. Recognizing it as a residual of a cancelled capability requires knowledge of its history. Unless these artifacts are documented at the time of the downscoping, that knowledge may be lost.
Other items of technical debt that arise from budget depletion include tests that no longer need to be executed, or documentation that’s no longer consistent with the rest of the work product, or user interface artifacts no longer needed. When budgets become sufficiently tight, funds aren’t available for documenting these items of technical debt as debt, and the enterprise can lose track of them when team members move on or are reassigned.
In some instances, budget depletion takes effect even before the work begins. This happens, for example, when project champions unwittingly underestimate costs in order to obtain approval for the work they have in mind. The unreasonableness of the budget becomes clear soon after the budget is approved, and the effects described above take hold soon thereafter.
Budget depletion can also have some of the same effects as schedule pressure. When the team devises the downscoping plan, it must make choices about what to include in the revised project objectives. In some cases, the desire to include some work can bias estimates of the effort required to execute it. If the team underestimates the work involved, the result is increased pressure to perform that work. With increased pressure comes technical debt. See “With all deliberate urgency” for more.
A policy that could limit technical debt formation in response to budget depletion would require identifying the technical debt such action creates, and later retiring that debt. Because these actions do require resources, they consume some of the savings that were supposed to accrue from downscoping. In some cases, they could consume that amount in its entirety, or more. Most decision-makers probably over-estimate the effectiveness of the downscoping strategy. Often, it simply reduces current expenses by trading them for increased technical debt, which raises future expenses and decreases opportunities in future periods.
Available: here; Retrieved: February 5, 2018.
- Nontechnical precursors of nonstrategic technical debt
- Failure to communicate long-term business strategy
- Failure to communicate the technical debt concept
- Technological communication risk
- Team composition volatility
- The Dunning-Kruger effect can lead to technical debt
- Self-sustaining technical knowledge deficits during contract negotiations
- How performance management systems can contribute to technical debt
- Zero tolerance and work-to-rule deliveries create an adversarial culture
- Stovepiping can lead to technical debt
- Unrealistic definition of done
- Separating responsibility for maintenance and acquisition
- The fundamental attribution error
- Feature bias: unbalanced concern for capability vs. sustainability
- Unrealistic optimism: the planning fallacy and the n-person prisoner’s dilemma
- Confirmation bias and technical debt
- How outsourcing leads to increasing technical debt
- Contract restrictions can lead to technical debt
- Organizational psychopathy: career advancement by surfing the debt tsunami
- The Tragedy of the Commons is a distraction
- The Broken Windows theory of technical debt is broken
- Malfeasance can be a source of technical debt