Similarly, veteran tech executive Steve Blank wrote that many fast- moving and growing companies have excessive âorganizational debtââwhich âcan kill the company even quickerâ than technical debt. Steve defines organizational debt as compromises made to âjust get it done.â Sometimes itâs necessary, and smart, to prioritize the most important work and get to the rest later. Yet, like borrowing too much money, so much organizational debt can accumulate that your company struggles to pay it down.
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It sounds topsy-turvy, but it makes perfect sense if you think about it. The amount of work you have to do, especially if you are the leader of an organization, can expand indefinitelyâitâs simply not possible to do it all. Atchity hit the point perfectly in his book A Writerâs Time:
If your work is successful, it generates more work; as a result, the concept of âfinishing your workâ is a contradiction in terms so blatant and so dangerous that it can lead to nervous breakdownsâbecause it puts the pressure on the wrong places in your mind and habits.
When an organization confronts a large number of novel problems, a top-down structure is likely to be a choke point. As issues get escalated, problems pile up on the doorstep of senior leaders who often lack the experience and bandwidth to make smart, speedy decisions. Over time, the backlog grows and the pace of decision making decelerates. Stratification is the enemy of speed.
As the damage caused by excessive speed ripples throughout an organization, it can turn into a vicious downward spiral that, once it gains momentum, is hard for leaders to reverse. As harried leaders make bad decisions and errors that create more pressing problems that are left unsolved, and one overwhelmed member after another burns out, turns selfish and nasty, makes more flawed decisions, and becomes less creative, everyone tangled up with the organization suffers.
As individual teams kept racing ahead, Uberâs overall âorganizational velocityâ kept getting slower. There were three signs that the company was stalling. First, engineers were spending more time âwrestling with fixing things or dealing with mundane maintenance issuesâ and less time writing new code. Second, more teams had trouble implementing new features because they needed help from other teams, but werenât getting it. Or were blocked by other teams that were opposed to the new feature. Third, software outages were on the upswing. âEngineers and developers were responsible for their own code and on call for their services. That meant one proxy for technical debt was sleep debt.â The sleep debt kept getting worse. Skilled engineers âmiredâ in such âgrunt workâ kept leaving for companies such as Google, because they didnât like being âwoken up in the middle of the night fifteen times a week.â As Thuan explained, this âtechnical debtâ resulted from a structure that was too decentralized and norms that encouraged people to charge ahead without collaborating and coordinating with other teamsâso more and more employees engaged in firefighting to make temporary and local repairs that kept the system running but didnât fix root causes. Thuan added that further organizational debt was created because, as the company raced to scale fast, it hired and promoted too many inexperienced managers. These inexperienced managers were too focused on racing ahead and achieving short-term wins and were not focused (or skilled) enough to understand when to slow down and do things right and to coordinate their work with other teams.
Anyone KSF hired would have a hard time living on the salary offered. In not very much time, I think the new hires would be in debt to the company. Thatâs an old company-town trickâget people into debt, hang on to them, and work them harder. Debt slavery.