Olga Kiendler, founder of OK Transformation, is an award-winning executive and leadership coach.
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Amid the digitization urge in fast-paced industries, organizations often hastily acquire multiple platforms or technologies in a bid to keep up with industry changes, only to realize later that these acquisitions may not align with long-term goals or business models.
The temptation to adopt the latest trends without assessing compatibility with existing systems poses significant risks. This often leads to the accumulation of digital and technical debt, hindering organizations' adaptability and value delivery to customers. In addition, beyond organizational impacts, these debts can also affect the well-being of employees and decrease productivity.
This article delves into the concepts of digital and technical debt, the leadership challenges they pose and how artificial intelligence (AI) can help alleviate these issues while promoting human sustainability.
Demystifying Digital And Technical Debt
Have you ever felt overwhelmed by the constant influx of digital communication (thousands of emails, several video calls and chat platforms), which obstructs creative thinking and problem-solving? Digital debt represents the time and energy spent managing digital tasks, impeding core job responsibilities. At the same time, while their employees are trying to manage digital communication and creative thinking, organizations are constantly chasing after cutting-edge software solutions to stay ahead in the competitive market. In that race, they are piling up their tech balance sheets with the lesser-known but omnipresent “technical debt.”
It encompasses various software development aspects like poorly designed code and outdated technologies, accumulating over time with detrimental effects on system maintenance, enhancement and scalability. According to a report by Herb Krasner, this debt would require $1.52 trillion to fix and costs the U.S. $2.41 trillion a year in cybersecurity and operational failures, failed development projects and maintenance of outdated systems. These debts occur in every company, from small to large. Without being aware of it, many IT companies, the supply chain industry, as well as hospitals and airlines, are exposed to this. Just think of all the queues in hospitals, failed scheduling systems or all the canceled or delayed flights or mismanaged luggage due to system failure.
The Struggle Of Modern Workers
Modern workers navigate myriad digital distractions that hinder productivity and well-being. The incessant need to stay connected and react promptly to messages disrupts deep work and creative thinking, leading to reduced efficiency. According to the Microsoft 2023 Work Trend Index, 68% of employees say they don’t have enough uninterrupted focus time during the workday. Industries like logistics/supply chain are particularly impacted, with effective and timely communication playing a crucial role in their daily operations.
Pressure to deliver quickly, lack of communication, reliance on legacy systems and inadequate documentation contribute to digital and technological debt. Rushing product releases to capture market share, poor stakeholder cooperation, outdated technologies and lack of adequate skill sets all add to the burden of debt accumulation in today’s competitive landscape.
Leadership Challenges
Leaders face the daunting task of balancing short-term gains with long-term sustainability, promoting accountability and continuous improvement within their teams. Increasing digital debt hampers organizational agility, raises maintenance costs, heightens the risk of failures and diminishes employee morale, highlighting the imperative for effective leadership in managing debt accumulation.
Rather than chasing the newest trends and platforms, leaders should focus on their employees and the ease of doing business not only for the customers but also employees. Inefficiencies, mistakes and demotivation are all results of dull, repetitive and uninspiring actions that go at the cost of innovation.
The Role Of AI In Resolving Digital Debt And Enhancing Human Sustainability
AI presents opportunities to automate tasks, streamline processes and enhance decision-making, thereby aiding in resolving digital and technological debt issues. AI-powered analytics can pinpoint areas for improvement, predict future problems and guide strategic decision-making. By harnessing AI, organizations can optimize their digital infrastructure and enhance operational efficiency.
One interesting fact, contrary to the assumptions of many, is that "people are more excited about AI rescuing them from burnout than they are worried about it eliminating their jobs." That's according to writer and professor Adam Grant; it seems that people are starting to see AI as helpful in almost every aspect of their work. Microsoft found that 80% of people surveyed would use AI to even plan their day, and 79% feel comfortable using AI for analytical tools. Another fascinating fact is that 73% would use AI for creative purposes.
While AI offers solutions to digital debt, organizations must prioritize human-centric sustainability by investing in employee upskilling and reskilling to prepare individuals for the digital transformation. This will also foster a culture of continuous learning and growth.
According to the Microsoft report, 82% of leaders say their employees will need new skills to be prepared for the growth of AI. Also, business leaders are twice as likely to say that AI would boost productivity rather than contribute to cutting head counts.
In a world where digital distractions and technological burdens seem ever-present, the solution might lie in an unexpected ally: artificial intelligence. As organizations grapple with the complexities of digital and technical debt, AI emerges as a powerful tool for streamlining processes, enhancing decision-making and ultimately helping alleviate the burdens that weigh on both systems and employees.
Imagine a workplace where AI not only handles mundane tasks but also aids in planning creative endeavors, helping individuals navigate their day with ease and efficiency. This shift in perspective signals a profound opportunity for leaders to embrace AI as a catalyst for innovation and sustainability, rather than a threat to job security.
In the end, the true power of AI lies not in its ability to automate tasks but in its potential to enhance the human experience. By harnessing AI to tackle digital debt and promote human sustainability, organizations can pave the way for a future where technology serves as a force for good, empowering individuals to thrive in an ever-evolving digital landscape.
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