As a CTO or senior technical leader, you've likely faced the challenge of conveying the importance of resolving technical debt to your C-level colleagues. It's a common yet critical hurdle that can impact the overall health and success of your organization. So, how do you break through the noise and get your message across effectively? In our latest podcast episode, we dive deep into this topic with Karol Galanciak, CTO at Smily. Karol shares invaluable insights on how to engage C-level stakeholders and prioritize technical debt. Trust me, you won't want to miss this!
Video Interview
You can watch the video on YouTube or below:
Why Technical Debt Matters
Before we jump into Karol's strategies, let's revisit why technical debt is such a pressing issue. Technical debt, much like financial debt, accumulates over time and can significantly drag down your organization's productivity, customer satisfaction, and even financial performance.
Karol puts it perfectly:
"If the technical debt is big enough that customers start to lose trust, it's already a clear signal. You can map it to the monetary impact—lost productivity is almost like losing a portion of your technical team."
Understanding the magnitude of technical debt and its impact across different departments is the first step toward effective stakeholder engagement.
The Financial Perspective: Speaking the Language of C-Level Executives
One of the most compelling parts of our conversation with Karol is his approach to translating technical issues into financial terms. He emphasizes the importance of speaking the language that resonates with C-level executives:
"The thing with the monetary impact is that it's kind of a universal language. Most of the metrics on the technical side can map easily to the financial impact."
By framing technical debt in terms of its financial consequences, you can make a more compelling case to your CFO and other business leaders. Karol shares how he calculates the financial impact of technical debt, from decreased developer productivity to increased customer churn:
"If you experience an additional 1% churn due to platform instability, you can map it to the financial impact as well."
Engaging Different Departments
Resolving technical debt is not solely a technical issue; it involves various departments within your organization. Karol shares his experience working with different stakeholders, from finance and product to sales and legal. Here are some highlights:
Product and Development
Karol believes that product and tech are two sides of the same coin. Effective collaboration between these teams is crucial for delivering maximum value to customers. He explains:
"Imagine that the magnitude of technical debt is such that you lose 20-30% of developer productivity. You need to spend time either paying down the debt properly or fighting fires."
Sales
The relationship between engineering and sales can be particularly tricky, especially when technical debt impacts the delivery of promised features. Karol highlights the importance of clear communication to avoid overselling and unrealistic customer expectations:
"Sales are always incentivized to deliver more revenue. If they count on a marketing campaign that brings more leads and it doesn't happen, they might find ways to bring in revenue, leading to overselling."
Legal and Compliance
Technical debt can also have legal implications, particularly concerning data protection and security. Karol stresses the need for close collaboration with the legal department:
"For legal, which might not be the first thing you think of when discussing technical debt, the impact is real. Imagine a microservices system where personal data is distributed. You need to ensure you can identify and manage this data properly."
The Importance of Effective Communication
Throughout our discussion, one theme consistently emerged: the importance of effective communication. As Karol puts it:
"Effective communication is such a vital skill for every business leader. If you're wondering what the next thing to learn should be, make sure it's superior communication."
Understanding what different stakeholders care about and learning to speak their language can significantly enhance your ability to get buy-in for technical initiatives.
Practical Tips for CTOs and Tech Leaders
To wrap up, here are some practical tips from Karol for engaging C-level stakeholders and tackling technical debt:
- Speak the Financial Language: Translate technical metrics into financial terms to make a compelling case for resolving technical debt.
- Empathize with Customers: Understand the real impact of technical debt on customer satisfaction and retention.
- Collaborate Across Departments: Engage with different departments to understand their perspectives and priorities.
- Prioritize Effective Communication: Learn to speak the language of your stakeholders and make sure your message is understood.
- Keep the Business Goals in Mind: Align your technical initiatives with the broader business objectives to ensure everyone is moving in the same direction.
Final Thoughts
Technical debt can be a daunting challenge, but with the right strategies, you can effectively engage your C-level colleagues and prioritize its resolution. Karol Galanciak's insights provide a valuable roadmap for any CTO or senior technical leader facing this issue.
Thank you for reading! If you have any thoughts or questions for Karol, feel free to contact him on LinkedIn.
