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20% Tech Debt Rule

Technical debt is unavoidable, but must be actively managed. We use the 20% rule for continuous repayment and are not afraid of Dependency Bankruptcy when the situation demands it.

Core concept

As a rough guide, many teams reserve around 20% of capacity for refactoring, updates, and architectural improvements. The right proportion depends on the debt level, risk profile, and rate of change in the codebase. This safeguards long-term delivery speed (velocity).

Application

  • Tech Debt Registry: Making debt visible in the backlog or via TODOs in the code.
  • Refactoring Sprints: Targeted phases for paying down interest in core components.
  • Dependency Bankruptcy: Complete replacement of libraries or services when maintenance costs outweigh the benefits.

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