Managing Technical Debt for Associations

Managing Technical Debt for Associations

In their ASAE article, Rhoni Rakos, Evan Reid, and Tracie Harris outline how technical debt—the hidden cost of outdated systems, manual workarounds, and deferred upgrades—poses a significant challenge for associations. Far from being just an IT problem, technical debt affects operations, finances, and an organization’s ability to serve members effectively. Left unmanaged, it can result in wasted resources, missed opportunities, and reduced member engagement.

Rakos, Reid, and Harris explain that technical debt often arises when organizations take short-term shortcuts, such as relying on outdated platforms or patchwork integrations. While these choices are sometimes strategic, meeting an immediate deadline with the intent to rectify them later, they accumulate into inefficiencies that constrain growth. Signs of technical debt include poor data quality, unsupported platforms, and excessive manual processes.

The authors illustrate the stakes through a case study of an association that is still using an outdated email marketing system. Workarounds required the equivalent of two full-time staff members, costing $300,000 annually. Additionally, poor segmentation and a lack of omnichannel tools resulted in an extra $275,000 in lost revenue and inefficiencies. In total, the debt costs $575,000 annually, which is far more than the estimated $200,000 needed for modernization.

To help leaders take action, Rakos, Reid, and Harris recommend a four-step model: document current systems, evaluate their impact, envision an ideal future state, and compare the costs of debt versus modernization. The authors emphasize that while perfection is unattainable, realistic assessments and incremental wins can set associations on a sustainable path.