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The concept of Enterprise Debt™ was created in 2008 as part of PEAF. It is based on the concept of Technical Debt. Pragmatic EA Ltd has since clarified expanded and developed the concept into a practical and easily usable methodology that can be easily adopted.


Technical Debt only considered one type of guidance “Think Long Term” in relation to IT Solutions (Application, Data, Platform, Technology) - illustrated on the graphic with green lines.

Enterprise Debt™ takes this basic idea and expands it in 3 very important ways - illustrated on the graphic with purple lines:

¨      It applies not only to IT, but also (using MACE) to the Methods, Artefacts, Culture and the rest of the Environment domain (such as frameworks and locations) that IT is only a sub-domain of.

¨      It applies not only to one kind of guidance (“Think Long Term”) but to all types of Guidance (Values, Principles, Policies, Standards, etc) that guide HOW we effect Transformation, which includes the Structural Guidance provided by they levels above.

¨      It applies not only in one phase (Constructing) but in all phases of the Transformation stack.

In this way, Enterprise Debt™ sits at the heart of the Governance & Lobbying disciplines which are the glue the makes the whole Transformation cascade coherent and therefore effective and efficient.

It provides the concept, mechanism and practical guidance that allows for problems or opportunities to be exposed (whenever and wherever they occur), and for them to then be evaluated and raised to the correct level for a decision to be made regarding their resolution in the full knowledge of the implications of doing so or not doing so.


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