Horowitz introduces the concept of 'management debt,' which parallels technical debt. Management debt occurs when short-term, expedient decisions lead to long-term, expensive consequences. Examples include putting two people in the same role, overcompensating an employee to prevent them from leaving, and neglecting performance management processes. 'Like technical debt, management debt is incurred when you make an expedient, short-term management decision with an expensive, long-term consequence.' | Ben Horowitz | The Hard Thing About Hard Things

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Management Debt and Its Consequences

Horowitz introduces the concept of 'management debt,' which parallels technical debt. Management debt occurs when short-term, expedient decisions lead to long-term, expensive consequences. Examples include putting two people in the same role, overcompensating an employee to prevent them from leaving, and neglecting performance management processes. 'Like technical debt, management debt is incurred when you make an expedient, short-term management decision with an expensive, long-term consequence.'

-- Ben Horowitz