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The Future of HR: Slaying Your Company’s Org Debt Monster

At Work with The Ready

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Org Debt is Like Financial or Tech Debt: It's the Accumulation of Negative States

Organizational debt parallels financial and technical debt, representing the cumulative effect of outdated policies, processes, and organizational practices that once served a purpose but have since become burdensome. Such debt builds up without a structured way to address or reduce it, leading to bureaucratic layers that impede progress. In many cases, efforts to manage daily operational tasks feel like paying interest on this debt, without addressing the core issues that hinder meaningful change or improvement within the organization. This results in a focus on compliance and superficial tasks rather than tackling the fundamental work that drives organizational success.

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