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Technical Debt

Definition

The accumulated cost of shortcuts, expedient decisions, and deferred maintenance in a codebase. Like financial debt, technical debt accrues "interest" in the form of slower development velocity, more bugs, and higher onboarding friction for new engineers. PMs must balance feature delivery with regular technical debt paydown to maintain long-term team productivity.

Why It Matters for Product Managers

Understanding technical debt helps product managers make better decisions about what to build, how to measure success, and where to focus limited resources. Teams that master this concept ship more effectively and maintain stronger alignment between business goals and user needs.

How It Works in Practice

Engineering and product teams leverage this practice by integrating it into their regular workflow:

  • Adopt — Agree as a team on how and when to apply this practice, making it an explicit part of the team's working agreement.
  • Execute — Follow through consistently, treating the practice as a non-negotiable part of how the team operates.
  • Inspect — Regularly evaluate whether the practice is delivering the expected benefits and surface any friction.
  • Adapt — Adjust the approach based on what the team learns, keeping what works and discarding what does not.

    • The value of technical debt compounds over time. Teams that commit to it consistently see improvements in velocity, quality, and cross-functional alignment.

    Common Pitfalls

  • Treating the practice as overhead rather than recognizing the quality and velocity benefits it provides.
  • Implementing the process without buy-in from the full cross-functional team.
  • Letting the process become rigid and bureaucratic instead of adapting it as the team learns and grows.

    • Related Concepts

    To build a more complete picture, explore these related concepts: Spike, Backlog, and Velocity. Each connects to this term and together they form a toolkit that product managers draw on daily.

    Related Terms

    SpikeBacklogVelocityDefinition of Done (DoD)

    Frequently Asked Questions

    What is technical debt in product management?+
    The accumulated cost of shortcuts, expedient decisions, and deferred maintenance in a codebase. Product managers use this concept to make more informed decisions and deliver better outcomes for users and the business.
    Why is technical debt important for product teams?+
    Technical Debt is important because it provides structure and alignment that enable teams to ship faster, reduce waste, and maintain quality. Teams that adopt this practice consistently see improvements in collaboration, predictability, and user satisfaction.
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