Decision Debt: When Memory Becomes the Operating System
- Rashmi Kulkarni

- Sep 21
- 3 min read
“If the rules live in your head, your team is already in debt.”

Last week, Rahul wrote about the founder’s invisible inbox → the unseen backlog of approvals and exceptions that turns memory into the company’s real operating system. This week, I want to go one level deeper. What happens when those invisible backlogs pile up, untracked, unpaid, and quietly expensive? That’s what we call decision debt.
It doesn’t show up on your dashboards. It doesn’t raise alarms. But you feel it in the pauses. A shipment half-packed. A contract unsigned. A meeting stalled until “the boss” replies. On the surface, it looks like caution. In reality, it’s debt … interest accruing on rules that exist only in one person’s head.
The Factory Freeze
At “The Factory,” our composite case from last week, this showed up every day. A production manager prepared to approve overtime. He paused. “Wait, the founder knows which clients reimburse and which don’t.” A quality team noticed a supplier had swapped packaging. They hesitated. “Better hold until he checks this.”
No one was incompetent. No one was careless. But the system had trained them to wait. On the ERP, the tasks sat as “pending.” No deadlines slipped yet. But execution slowed, not because of work, but because of memory.
That’s decision debt in action.
Why Memory Feels Safer
Leaders don’t create decision debt out of laziness. They do it out of care. At The Factory, the founder often told me: “Why write it down? I can just tell them directly.”
In the short run, memory feels faster than structure.
One WhatsApp approval instead of updating a workflow.
One late-night reminder instead of writing a rule.
One quick correction instead of codifying quality standards.
But speed through memory is deceptive. What feels like agility to you feels like fragility to your team. Because when the rule isn’t visible, people don’t move. They wait.
The Weight of Decision Debt
Every unwritten rule is a loan against the future.
The client preference you “just know.”
The price floor only you remember.
The service exception you handle “case by case.”
Each one adds to your invisible ledger.
At small scale, you can carry it. At 50, 100, or 200 people, the debt becomes unpayable. The more you remember, the more your team hesitates. The more they hesitate, the more you step in. And so the cycle compounds. Velocity drains quietly, not in one big breakdown, but in a hundred small pauses.
The Drag of Cognitive Lag
This is the hidden cost: cognitive lag. It’s the time lost between knowing what to do and waiting for confirmation. At The Factory, cognitive lag turned hours into days. Shipments delayed. Overtime stalled. Proposals stuck in limbo. No one called it failure. On paper, the system looked alive. But in practice, execution moved like it was underwater.
The deeper truth? Lag wasn’t caused by weak managers. It was caused by leaders carrying rules in their heads instead of embedding them in systems.
Paying It Down
Decision debt isn’t inevitable. But it requires discipline to pay down.
At The Factory, we started small:
Documenting one client rule each week.
Tagging visible ownership for recurring approvals.
Running a simple experiment … founder unavailable for 72 hours.
The results were immediate. Work moved without waiting. Approvals cleared in-window. The founder’s headspace finally began to clear. The team wasn’t more talented than before. They were just freed from invisible debt.
The Human Confession
When I asked the founder what kept him holding on, he said quietly: “I don’t want them to fail because I forgot to tell them something.” That’s the paradox. Leaders think they’re protecting the team by carrying decisions in memory. In reality, they’re making the team dependent. Debt disguised as care.
Final Reflection
Decision debt doesn’t scream. It whispers. In polite pauses, repeated clarifications, and “just checking” messages. But over time, those whispers add up. And they cost more than any tool or hire. Leaders don’t need to stop caring. They need to change how care is expressed. Not by remembering for everyone, but by embedding rules so no one has to wait.
If your team’s default is hesitation, you’re not just carrying weight in your head. You’re carrying debt. And the longer it stays invisible, the heavier it gets.
Read more in-depth insights at: www.ppsconsulting.biz/blog
(Rashmi Kulkarni is Co-founder at PPS Consulting. Views personal. Write to rashmi@ppsconsulting.biz.)




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