Last updated on August 15th, 2018 at 12:48 pm
Even though technical debt has been with us for a very long time—probably since the time we began inventing technologies—the study of technical debt is relatively new. Ward Cunningham coined the term technical debt in 1992, and its meaning has evolved since then. Because universally accepted definitions for the term and associated concepts have not yet emerged, it seems necessary to have a page on this site that collects definitions.
Exogenous technical debt is asset-exogenous when it’s brought about by an activity external to an asset, but internal to the enterprise. For example, a change in standards or regulations by some body within the enterprise can cause an asset to incur an asset-exogenous technical debt.
On occasion, we speak of classes of technical debt and instances of that class. This can be confusing, because the words class and instance have particular meanings in software engineering. That’s not the sense in which we use the terms here. In this blog, a class of technical debt is just a collection of instances of the same kind of debt. For example, consider the “ghost ramp” described in “Technical debt in the highway system.” It belongs to the class of ghost ramps. If we were maintaining the highway system of Massachusetts, it might be convenient to consider the class of ghost ramp technical debt if we want to let a contract to demolish all ghost ramps. Each ghost ramp would then be an instance of that class.
A cognitive bias is the human tendency to make systematic errors based not on evidence, but on factors related to the thought process. Psychologists have identified and demonstrated hundreds of cognitive biases, including several that could plausibly explain failures in priority setting for technical debt retirement projects.
An echo release of an asset is a release version whose primary purpose is technical debt retirement. Typically, it’s created immediately following a release version that has created some incremental technical debt, hence the term “echo release.” The echo release is then executed to retire that incremental technical debt, and not to repair defects or add capability. More: “Accounting for technical debt”
When we think of technical debt, we tend to think of activities that produce it relatively directly. We often imagine it as resulting solely from engineering activity, or from decisions not to undertake engineering activity. In either case the activity involved, whether undertaken or not, is activity directly involving the asset that carries the technical debt. This kind of technical debt is endogenous technical debt. The word endogenous comes from the Greek endo– (within or inside) + –genous (related to producing). So endogenous technical debt is that portion of an asset’s debt that comes about from activity or decisions that directly involve the asset. More: “Exogenous technical debt”
Exogenous technical debt is enterprise-exogenous when it’s brought about by an activity external to the enterprise. For example, a change in standards or regulations by some body outside the enterprise can cause an asset to incur an enterprise-exogenous technical debt.
Technical debt is exogenous when it’s brought about by an activity not directly related to the assets in which the debt appears. The word exogenous comes from the Greek exo– (outside) + –genous (related to producing). So exogenous technical debt is that portion of an asset’s debt that comes about from activity or decisions that don’t involve the asset directly. More: “Exogenous technical debt”
Incremental technical debt is technical debt that’s incurred in the course of work currently underway or just recently completed. For example, in an apartment building hallway renovation project, workmen did insert expansion joints in the sheetrock they replaced, but on the first three floors they completed, the joints were too widely separated. The remaining 22 floors were done correctly. Nine additional joints on each of the incorrect floors must be inserted eventually. The missing joints, which constitute incremental technical debt, will be inserted after the job is completed.
See “Class of technical debt”
A Key Performance Indicator (KPI) is a metric that provides meaningful insight that’s used to guide business decisions. All KPIs are metrics; not all metrics are KPIs. More: “Metrics for technical debt management: the basics”
Legacy technical debt is technical debt associated with an asset, and which exists in any form prior to undertaking work on that asset. For example, in planning a project to renovate the hallways and common areas of a high-rise apartment building, Management discovers that beneath the existing carpeting is a layer of floor tile containing asbestos. Management has decided to remove the tile. In this context, the floor tile can be viewed as legacy technical debt. It isn’t directly related to the objectives of the current renovation, but removing it will enhance the safety of future renovations, enable certification of the building as asbestos-free, and reduce the cost of eventual demolition. More: “Exogenous technical debt”
A measure is the result of determining the value of a quantifier. For example, we might use the quantifier’s definition to determine a measure of how much human effort has been expended on an asset in the past fiscal quarter. More: “Metrics for technical debt management: the basics”
A metric is an arithmetic formula expressed in terms of constants and a set of measures. One of the simpler metrics consists of a single ratio of two measures. For example, the metric that captures the average cost of acquiring a new customer in the previous fiscal quarter is the ratio of two measures, namely, the investment made in acquiring new customers, and the number of new customers acquired. More: “Metrics for technical debt management: the basics”
MICs are the metaphorical interest charges associated with a technical debt. They aren’t interest charges in the financial sense; rather, the MICs of a technical debt represent the total of reduced revenue, lost opportunities, and increased costs of all kinds borne by the enterprise as a consequence of carrying that technical debt. Because the properties of MICs are very different from the properties of financial interest charges, we use the term MICs to avoid confusion with the term interest from the realm of finance. More: “How financial interest charges differ from interest charges on technical debt”
The MPrin of a technical debt at a give time T is the total cost of retiring that debt at time T. The total cost includes all cost factors: labor, equipment, service interruptions, revenue delays, anything. It even includes the ongoing costs of repairing defects introduced in the debt retirement process. More: “The metaphorical principal of a technical debt”
Non-strategic technical debt is technical debt that appears in the asset without strategic purpose. We tend to introduce non-strategic technical debt by accident, or as the result of urgency, or from changes in standards, laws, or regulations—almost any source other than asset-related engineering purposes. And at times, it appears in the asset as a result of external events beyond the boundaries of the enterprise. More: “Non-technical precursors of non-strategic technical debt”
The planning fallacy is a cognitive bias that causes planners to underestimate costs and schedules, and over-promise benefits, because they pay too little heed to past experience on similar efforts, and rely too much on what they believe will happen on the effort they’re planning. First identified in a 1977 report by Daniel Kahneman and Amos Tversky [Kahneman 1979a] [Kahneman 1979b]. More: “Unrealistic optimism: the planning fallacy and the n-person prisoner’s dilemma”
Organizational policy is the framework of principles that guide policymakers, decision makers, and everyone in the organization as they carry out their responsibilities. Policy might be written or not, but written policy is more likely to consistently adhered to. Interestingly, the body of organizational policy is itself subject to accumulating technical debt. More: “What is policy?”
As I use the term in this blog, a policymaker is someone who is responsible for developing, revising, or approving organizational policies that affect technical debt management. More: “Who are the policymakers?”
A quantifier is a specification for a measurement process designed to yield a numeric representation of some attribute of an asset or process. Quantifiers are used to obtain the values called measures, which in turn are used in computing metrics. More: “Metrics for technical debt management: the basics”
Fowler defines refactoring as “the process of changing a software system in such a way that it does not alter the external behavior of the code yet improves its internal structure” [Fowler 1999]. Although refactoring is a term specific to software development processes, the concept applies to all technological development. For example, an automobile manufacturer’s decision to alter the design of one of their model vehicles to reduce manufacturing costs can be viewed as a form of refactoring. Refactoring is a practice essential to effective technical debt management.
Regression testing is a testing regimen that ensures that a previously developed and tested system still performs the same way after it has been altered or when it’s used in a new context. Regression testing is essential when we alter a system by retiring some of its technical debt.
A secured technical debt, like a secured financial debt, is one for which the enterprise has reserved the resources needed to retire the debt. However, unlike a financial debt, the resources required to retire a technical debt might not be purely financial. They might include particular staff, equipment, test beds, downtime, and financial resources. The commitment might extend beyond the current fiscal period. Secured technical debt is a powerful means of driving down total technical debt burden, but it might require modification of internal budget management processes and fiscal reporting. Policymakers can help in designing and deploying the necessary changes.
In a metaphor of the form “A is B,” the source is the element whose attributes are being attributed to the target. For example, in “my son’s room is a war zone,” the source is the war zone, and the target is my son’s room. More: “The structure of metaphors”
Technical debt is any technological element that contributes, through its existence or through its absence, to lower productivity or to a higher probability of defects during development, maintenance, or enhancement efforts, or which depresses velocity in some other way, and which we would therefore like to revise, repair, replace, rewrite, create, or re-engineer for sound engineering reasons. It can be found in—or it can be missing from—software, hardware, processes, procedures, practices, or any associated artifact, acquired by the enterprise or created within it. More: “A policymaker’s definition of technical debt”
Technological communication risk is the risk that, for whatever reason, knowledgeable people within the enterprise don’t communicate important knowledge to the people who need it, or the people who need it aren’t receptive to it. More: “Technological communication risk”
A terrifying opportunity arises when the organization rejects (or fails to recognize) a market opportunity because exploiting it would involve modifying an existing asset or product offering that harbors a heavy load of technical debt. The debt causes decision-makers to assess that the probability of success is so low that the opportunity seems terrifying, and they therefore reject the opportunity. More: “MICs on technical debt can be difficult to measure”
[Fowler 1999] Martin Fowler, Kent Beck (Contributor), John Brant (Contributor), William Opdyke, don Roberts. Refactoring: Improving the Design of Existing Code. Boston: Addison-Wesley Professional; first edition (July 8, 1999).
- Glossary and Terminology
- Unrealistic optimism: the planning fallacy and the n-person prisoner's dilemma