Against Developer Productivity

2026-01-24

Developer productivity is not a bad thing – but low developer productivity is not what's holding you back.

Behind the industry-wide interest in coding assistants there's a hidden assumption that the bottleneck for industry profits is developer productivity:

On the surface this makes a lot of sense:

But a second look at the hypothesis shows some problems:

If not developer productivity — if developer productivity isn't fantastic but it's not the main factor limiting competitiveness — then what is?

I believe the bottleneck is upstream of coding, in the depth of the institutional expertise about the aspects of the world the software is meant to help with informing product and feature design:

You can think of it in this way:

It can be even simpler than that: Developers working in a domain — unless they are writing software for other developers — have an increasingly impressive set of tools, but they aren't going to have a sophisticated understanding of the problem. This isn't a criticism. Understanding the nature and constraints of a problem, what has been tried in the past and what was learned from those attempts, is far from trivial in any domain.

Yes, we all know that good development begins with understanding the user. What's less commonly acknowledged is the impossibility of understanding a user with years or decades or experience doing something unless there's an equivalent reservoir of experience inside the organization.

And if institutional expertise is the bottleneck, then investing in institutional expertise has the highest ROI.

I've written before about how a high-expertise organization looks like. It doesn't need to be "better at having ideas" than its competitors, nor have more productive coders, but even average ideas implemented by average coders, if beginning from an advanced enough knowledge frontier, will have an advantage that no amount of coding productivity can replicate. Developer productivity is how fast you move; organizational expertise determines how far you can go.

By all means, if your developers' productivity is harmed by something easy to fix, fix that. But you won't overtake your competitors by squeezing a few extra lines of code per dollar from your developers. You'll get better results by helping them, and your organization, have a more sophisticated understanding of what they are coding for.