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How do incidents in productive environments affect companies?

How do incidents in productive environments affect companies?

Monday, April 28, 2025

Incidents in production environments represent one of the greatest challenges for technology organizations and development teams. When these incidents result from inadequate review during the earlier phases of the development cycle, the impact can be devastating, both for the project itself and for the organization as a whole. This article delves deeply into the multiple dimensions of this problem and its consequences.


Dimensions of the impact of incidents in production


1. Direct economic impact

Incidents in production generate immediate and quantifiable costs:

  • Downtime: According to recent studies, the average cost per hour of downtime for a medium-sized company ranges from €10,000 to €50,000, depending on the sector.

  • Resources allocated to resolution: Emergency teams often involve high-level technical personnel, whose dedication to resolving incidents represents a significant opportunity cost.

  • Compensations to clients: Many companies must compensate their clients for failing to meet service level agreements (SLAs).

  • Contractual penalties: In B2B projects, penalty clauses for production failures can represent up to 15% of the total value of the contract.


2. Wear and tear on technical teams

Incidents generate considerable human impact:

  • Stress and burnout: The pressure to resolve problems in production, often outside of working hours, increases stress levels for the team.

  • Staff turnover: Teams subjected to constant emergencies experience turnover rates up to 30% higher than the industry average.

  • Demoralization: The feeling of work done poorly or incomplete affects team motivation and commitment.

  • Tense work environment: Blame and searching for culprits deteriorate interpersonal relationships within the team.


3. Erosion of trust

One of the most difficult but persistent impacts to quantify:

  • Loss of customer trust: Each serious incident reduces the likelihood of contract renewals and positive referrals.

  • Internal distrust: Management begins to question the technical and professional capacity of the team.

  • Reputational damage: In the digital age, serious incidents quickly become reputational crises via social media.

  • Technical credibility: Positioning as a technology expert is compromised by avoidable failures.


4. Deviation from the product roadmap

The normal development cycle is severely disrupted:

  • Delay in new functionalities: Resources allocated to resolving incidents are not available to develop planned functionalities.

  • Longer review cycles: After serious incidents, more thorough review processes are often implemented, slowing down time-to-market.

  • Deployment freezes: Many organizations establish periods of "code freeze" after serious incidents.

  • Redesign of components: Often, emergency solutions later require a complete redesign, doubling the effort.



Common causes of inadequate review


1. Time pressure and technical debt

  • Unrealistic deadlines: Optimistic timelines that do not allow enough time for thorough testing.

  • Prioritization of functionalities over quality: Business pressure to deliver new features often marginalizes quality assurance activities.

  • Accumulation of technical debt: Shortcuts taken in early phases that never get properly fixed.

  • "We'll fix it later" syndrome: Systematically postponing the correction of non-critical issues.


2. Methodological deficiencies

  • Absence of formal review processes: Lack of structured quality control methodologies.

  • Insufficient test coverage: Test sets that do not contemplate critical scenarios or edge cases.

  • Non-representative testing environments: Significant differences between development/testing environments and the production environment.

  • Lack of automation: Excessive dependence on manual testing, more prone to human error.


3. Organizational and cultural issues

  • Departmental silos: Disconnection between development, QA, and operations teams.

  • "Firefighting" culture: Organizations that reward the "hero" who resolves crises instead of those who prevent them.

  • Lack of code ownership: Systems where no one feels responsible for the end result.

  • Underestimation of risk: Tendency to minimize the probability or impact of potential failures.



Metrics that are affected

Production incidents directly impact key performance indicators:

  • Time to Market (TTM): Increase of 20-40% in the time required to launch new functionalities.

  • Total Cost of Ownership (TCO): Significant increase due to unplanned corrective maintenance costs.

  • Return on Investment (ROI): Decrease due to resources diverted to problem resolution instead of value generation.

  • Net Promoter Score (NPS): Reduction in satisfaction and recommendation from end users.

  • Mean Time Between Failures (MTBF): Decrease in the perceived reliability of the system.



Effective preventive strategies


1. Integrating quality into the process

Shift Left Testing: Move testing as early as possible in the development cycle.

  • Test Driven Development (TDD): Write tests before the production code.

  • Pair Programming/Code Review: Reducing errors through continuous review.

  • Continuous Integration and Delivery (CI/CD): Automating tests with each code change.


2. Culture of shared responsibility

  • DevOps: Bridging development and operations teams.

  • Site Reliability Engineering (SRE): Applying software engineering principles to infrastructure problems.

  • "You build it, you run it": Holding developers accountable for production behavior.

  • Post-Incident Reviews (RCA): Without searching for blame, focused on continuous improvement.


3. Monitoring and early detection

  • Canary Releases: Gradual release to detect issues before affecting all users.

  • Feature Flags: Ability to enable/disable features in real time.

  • APM Monitoring: Detailed tracking of application performance.

  • Proactive Alerts: Systems that detect anomalous behaviors before they cause visible problems.



Case Studies


Case 1: Financial Entity - Impact on Customer Trust

A major Spanish financial entity deployed an update of its mobile application without adequate security testing. This update contained a vulnerability that potentially exposed sensitive customer data.


Consequences:

  • Need to roll back the update in less than 24 hours

  • Mandatory notification to the Spanish Data Protection Agency

  • Costly crisis communication campaign exceeding €300,000

  • 18% drop in new digital banking sign-ups in the following quarter

  • 6-month delay in the planned development roadmap


Lessons Learned:

  • Implementation of a dedicated pentesting team

  • Mandatory external review for critical components

  • Progressive rollout by user segments



Case 2: E-commerce Platform - Direct Economic Impact

An e-commerce platform experienced a system crash during Black Friday due to a scalability issue that went undetected during load testing.


Consequences:

  • 4 hours of downtime on the year's highest sales day

  • Estimated direct losses of €1.2 million

  • Compensations to external sellers worth €350,000

  • Subsequent overload of customer service systems for two weeks

  • Cancellation of the contract with the cloud infrastructure provider


Lessons Learned:

  • Development of a quarterly "game day" to simulate high load scenarios

  • Implementation of a contingency plan with automatic failover capability

  • Restructuring of the team with specialists in performance and scalability



Case 3: Public Administration - Reputational Impact

A public agency launched a platform for managing social aid without proper validation of real use cases, resulting in errors during request registration.


Consequences:

  • Negative media coverage for over a week

  • Political intervention with the head appearing before oversight bodies

  • Need to enable alternative manual processes with additional personnel costs

  • Delay in distributing aid to vulnerable groups

  • Resignation of the CIO and restructuring of the IT department


Lessons Learned:

  • Creation of a verification committee with participation from end users

  • Implementation of acceptance testing with real cases

  • Development of a specific contingency plan for critical public services



Conclusions and Recommendations


For executives and project managers

  • Investing in quality is more economical than managing crises: The cost of implementing robust quality processes typically represents 15-25% of the project's budget, whereas the cost of serious incidents can exceed 150% of the original budget.

  • Establish quality metrics with the same weight as delivery metrics: Indicators such as incident reduction should hold the same relevance as timeline compliance.

  • Foster a culture of transparency: Create environments where reporting potential problems is valued and not penalized.

  • Allocate specific resources to prevention: Assign roles dedicated exclusively to quality and review.


For technical teams

  • Automate as much as possible: Unit, integration, performance, and security tests should be executed automatically with each change.

  • Simulate real conditions: Use representative production data and volumes in testing.

  • Implement chaos engineering techniques: Intentionally introduce failures to verify system robustness.

  • Document and share learnings: Turn each incident into an opportunity for collective improvement.


Production incidents resulting from inadequate reviews are not just technical failures; they represent systemic failures that affect the entire organization. Addressing them requires a comprehensive approach that combines technical, organizational, and cultural aspects. Excellence does not consist of completely avoiding errors—something practically impossible—but in creating systems robust enough to detect them early and resilient enough to minimize their impact when they inevitably occur.



- Roberto Arce (CTO QA Beryon)




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