Rethinking Technical Debt: Prioritizing Refactoring vs. New Features

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Rafael Timbó
By
Rafael Timbó
|
Chief Technology Officer
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Learn how to manage technical debt effectively, when to prioritize refactoring over new features, and strategies for balancing growth with a maintainable codebase.
Published on
November 13, 2024
Updated on
November 21, 2024

In today’s fast-paced software industry, technical debt is a challenge every engineering leader faces. Often likened to financial debt, technical debt occurs when teams take shortcuts to deliver features faster, leaving behind code that needs refactoring later. While shipping new features is critical for growth, too much technical debt can hinder your product’s long-term scalability, security, and performance.

For senior engineering and product leaders, understanding when to prioritize refactoring over building new features is crucial. In this blog, we’ll explore the complexities of managing technical debt and offer strategies for balancing the need for innovation with maintaining a clean codebase.

The Risks of Ignoring Technical Debt

As products scale, technical debt can lead to increased maintenance costs, more bugs, and slower release cycles—ultimately affecting your product’s quality and user experience. The challenge for engineering leaders lies in balancing innovation with keeping technical debt under control. When left unchecked, technical debt can have several detrimental impacts on your engineering team and overall business:

  1. Reduced Development Speed: Over time, technical debt makes it harder for engineers to add new features or fix bugs. Code becomes brittle and less flexible, requiring more effort to modify.
  2. Low Reliability: Quick fixes that bypass best practices tend to introduce more bugs. As technical debt accumulates, the product’s stability and reliability suffer, leading to more user-reported issues.
  3. Low Team Morale: Engineers become frustrated when they’re constantly dealing with poor code quality. It becomes harder to build momentum, leading to burnout and potentially higher turnover rates.
  4. Limited Scalability: For companies experiencing rapid growth, technical debt can hinder their ability to scale. Teams might struggle to optimize performance or address security vulnerabilities as they navigate a maze of technical compromises.

Ignoring technical debt may seem appealing in the short term to get more features to market quickly, but it’s crucial to realize that over time, the cost of accumulating debt far exceeds the cost of regular refactoring.

When to Prioritize Refactoring Over New Features

As a senior engineering leader, the decision to prioritize refactoring over new features comes down to a careful evaluation of business goals, code quality, and long-term product strategy. Here are key indicators that refactoring should be prioritized:

  1. Increasing Bug Volume: If your team is spending more time fixing bugs than building new features, it’s a sign that technical debt is impacting your product’s quality. Frequent patches for legacy code can eat into your development velocity, leaving less time for innovation.
  2. Declining Performance Metrics: If user feedback points to slow performance or frequent outages, it’s often a sign that technical debt is affecting your product’s scalability. Refactoring parts of your architecture can help optimize performance and reduce bottlenecks.
  3. Difficulties in Onboarding New Engineers: When it becomes increasingly hard for new team members to understand your codebase, refactoring may be necessary. Clean, well-structured code improves onboarding, making it easier for new engineers to contribute meaningfully.
  4. Frequent Workarounds: If your team is consistently working around existing systems rather than improving them, it’s a sign that technical debt is slowing development. While workarounds are a temporary solution, they often introduce complexity and increase long-term maintenance costs.

Balancing New Features and Refactoring

Balancing the development of new features with refactoring efforts is an ongoing challenge for product and engineering leaders. Here are strategies to help:

  1. Allocate Time for Refactoring: Instead of delaying refactoring until after a major release, set aside a percentage of your sprint capacity for paying down technical debt. This ensures continuous improvement without stalling feature development.
  2. Assess ROI: Use data to measure the impact of refactoring on your product. Will refactoring improve performance and reduce customer churn? Will it accelerate future development? Make decisions based on ROI and the long-term value of technical improvements.
  3. Communicate the Business Value of Refactoring: It’s essential to explain the benefits of refactoring to non-technical stakeholders. While the business often pushes for new features, educating leaders about the long-term risks of ignoring technical debt will help secure buy-in for refactoring efforts.
  4. Identify High-Priority Areas: Not all technical debt is created equal. Focus on refactoring the areas of your code that have the greatest impact on performance, security, and scalability. Use technical debt tracking tools or developer feedback to identify the most critical areas.
  5. Track and Manage Technical Debt: Establish a framework for measuring technical debt, whether through code review metrics or automated tools like SonarQube or Code Climate. Regularly tracking technical debt allows you to prevent it from accumulating beyond control.

Conclusion: Building a Sustainable Product for the Future

For engineering and product leaders, managing technical debt isn’t just about keeping the code clean—it’s about ensuring your product can evolve and scale with your business. Knowing when to prioritize refactoring over new features is essential to building a sustainable product that doesn’t buckle under the weight of accumulated debt.

To stay competitive, leaders need to strike a balance between innovation and long-term stability. By regularly refactoring, you’ll enable faster feature development in the future, ensuring your product delivers both immediate and lasting value.

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