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Is Technical Debt Holding Your Business Back? - Hartman Executive Advisors

Written by Hartman Executive Advisors | May 1, 2025 4:00:00 AM

Technology decisions should support business growth, not stand in the way of it. Yet many organizations face mounting friction across systems and teams due to hidden issues that slow progress and block innovation.

According to a 2024 Morning Consult and Unqork survey, 80% of business and technology leaders said technical debt caused delays, canceled projects, and resulted in higher costs. This debt often results from short-term workarounds and outdated systems. Over time, it creates inefficiencies that reduce agility, weaken performance, and keep companies from moving forward.

Understanding Technical Debt’s Impact on Business Growth

Many organizations don’t recognize the weight of technical debt until it starts constraining growth. Symptoms often appear as sluggish systems, duplicated efforts, missed deadlines, or misalignment between departments. Left unchecked, these issues compound, silently eroding performance, agility, and competitiveness.

What is technical debt in a business context?

Technical debt refers to the accumulated cost of choosing short-term solutions over long-term technology strategies. It includes everything from outdated systems and undocumented code to siloed tools and integration gaps. These decisions might offer immediate benefits, such as speed or reduced upfront costs, but they defer complexity and cost into the future. Over time, technical debt becomes an invisible drag on scalability, decision-making, and innovation.

For business leaders, it’s not just a technical concern, it’s a strategic liability. It locks teams into rigid processes, stifles innovation, and increases the total cost of ownership. The longer it goes unaddressed, the more resources are diverted from value-generating activities to maintenance and rework.

How does technical debt affect financial performance and operations?

When core systems lack flexibility, responding to market changes becomes slower and more expensive. Teams spend more time working around constraints than executing strategy. Projects stall. Customer experience suffers. Predictability in forecasting erodes, and growth initiatives are delayed, not due to lack of vision, but due to legacy infrastructure that can’t support the pace of business.

At its core, technical debt affects:

  • Revenue Enablement: Missed opportunities from delayed feature delivery or product rollouts.
  • Cost Structure: Increased spend on maintenance, support, and workaround labor.
  • Risk Exposure: Greater likelihood of security vulnerabilities, compliance issues, or outages.
  • Talent Retention: Frustrated teams are hindered by outdated tools and slow systems.

Recognizing the Business Risks of Technical Debt

Technical debt is one of the most underestimated threats to business performance. It does not appear on your balance sheet, but it impacts nearly every line of your P&L. It is the accumulated cost of short-term technology decisions. These are often made to reduce costs or move quickly without a long-term plan for scale and integration.

This is not a technology problem. It is a business liability. It slows growth, increases costs, and introduces risk across the enterprise. Left unaddressed, it becomes a structural barrier to transformation and long-term competitiveness.

Slower Revenue Generation

Technical debt limits your ability to deliver new products, expand services, or adapt to shifting market demands. What should take weeks takes months. Customer experience suffers, and speed to market falls behind more agile competitors.

Increased Operating Costs

Maintaining outdated systems drains IT budgets. More staff time is spent on manual workarounds and inefficient processes. These hidden costs eat into margins and leave fewer resources for innovation or strategic initiatives.

Lack of Agility

When systems are fragmented or outdated, execution slows across departments. Teams are forced to work around the limitations of technology instead of moving in sync with business priorities. The strategy is clear, but the infrastructure cannot support it.

Greater Risk Exposure

Legacy platforms are more difficult to secure, harder to audit, and slower to adapt to regulatory changes. This increases vulnerability to cyber threats, data breaches, and compliance issues. Risk grows while visibility shrinks.

Loss of Top Talent

High-performing employees become frustrated when tools and systems slow them down. Innovation stalls. Morale drops. Retention becomes more difficult, and institutional knowledge walks out the door.

The longer technical debt remains unresolved, the harder and more expensive it becomes to fix. What starts as a technology shortcut can eventually limit your ability to compete, even when your strategy is right.

Addressing technical debt is not about chasing new software. It is about regaining control. It is about building a business infrastructure that supports scale, speed, and resilience. Executives who recognize this early will be in a stronger position to lead growth, not chase it.

Addressing Legacy Systems in a Fast-Moving Market

Most companies don’t set out to rely on outdated systems. However, legacy tools often stay in place because they still work, even if they no longer support new business goals. Over time, those systems can quietly slow everything down.

Risks of relying on outdated systems

Legacy systems may seem stable, but they carry real risks. They cost more to maintain, are harder to support, and often hold back new initiatives.
Some common issues include:

  • Delays in implementing new tools or integrations
  • Growing reliance on manual processes
  • Limited vendor support or security updates
  • Higher long-term operating costs
  • Increased cybersecurity risks

What once felt reliable eventually becomes a barrier. Teams spend time maintaining instead of improving. What’s more, as the gap between outdated tools and business needs grows, performance suffers.

How legacy systems limit data-driven decisions

Legacy systems often fail to integrate with newer platforms, creating data silos and hindering the ability to access timely, reliable insights. As a result, leadership is forced to rely on incomplete reports, outdated dashboards, and disconnected summaries that lack the full context needed for strategic decisions.

When data is difficult to trust or access in a timely manner, decision-making becomes slower and less effective. Opportunities are missed, and the ability to make quick, informed decisions is compromised. Legacy systems, built up by technical debt, keep companies from leveraging the valuable insights they already have, forcing them into a more reactive, less agile position.

Aligning Technical Debt Management with Business Strategy

Despite its name, technical debt is not just a technical challenge; it is a significant business inhibitor. If it is not aligned with the broader business strategy, it often escalates into larger, more costly problems. For this reason, leadership must approach technical debt with the same urgency and discipline as they would budgeting or risk management.

Why Technical Debt Should Be Integrated into both Business and IT Strategy

Every company relies on technology to operate, scale, and compete. When those systems fall behind, progress is hindered. Executives who integrate technical debt management into their business and IT strategy are better equipped to understand where performance is lagging and where investments are needed to enable future growth.

The integration of technical debt planning within the broader business framework ensures that IT resources are not only allocated efficiently but are directly aligned with strategic goals. By treating technical debt as a key factor in IT strategy, executives can ensure that their technology infrastructure evolves in tandem with the company’s objectives, supporting scalability and competitive advantage.

How Proactive Management Supports Growth

Waiting until technical debt becomes a pressing issue often results in more costly and disruptive fixes. Proactive management allows businesses to stay ahead by identifying areas of concern early, understanding when to modernize, and prioritizing investments that directly support growth initiatives. This approach frees teams to focus on innovation rather than constantly dealing with infrastructure constraints. Moreover, it enhances communication between leadership and IT, enabling faster decision-making and ensuring that core systems support the business goals without hindering progress.

When technical debt is addressed proactively and aligned with business strategy, it empowers the organization to scale efficiently, reduce risks, and capitalize on new opportunities without being weighed down by legacy systems or outdated processes.

Engaging with Strategic Advisors to Overcome Technical Debt

Managing technical debt requires more than just awareness. It calls for structure, objectivity, and a clear, strategic approach. For companies seeking to align technology investments with business outcomes, engaging external advisors can provide significant value.

How External Experts Drive Strategic Value

Independent technology advisors can bring an impartial, high-level perspective that internal teams may lack. They can spot patterns, highlight hidden risks, and ask the right questions without getting caught up in distractions of day-to-day operations. This objective viewpoint allows them to cut through the noise and focus on the long-term priorities that truly move the needle.

An experienced, trusted IT advisor doesn’t simply recommend new tools; they help craft a tailored strategy that fits your organizational goals, budget, and timeline. They play a crucial role in shaping the roadmap for technology upgrades, evaluating potential risks, and identifying the most pressing challenges to address. By working alongside your leadership team, they ensure that technical debt is not just managed, but strategically reduced in a way that drives sustainable growth.

Develop a Plan to Reduce Your Technical Debt 

Hartman Executive Advisors partners with leadership teams to create clear, business-focused plans that address technical debt and organization growth goals.

Our unbiased IT Advisory services are designed to provide leadership teams with clarity and control. We work alongside internal stakeholders to strengthen decision-making, reduce risk, and eliminate the barriers that slow progress. With the right approach, technical debt becomes a manageable part of your growth strategy, not a disruption.

If technical debt is limiting your ability to scale and becoming a strain on your P&L, Hartman can help. Schedule a consultation with our team to explore how we can support your strategic priorities and improve performance across the enterprise.