The concept of technical debt, introduced by Ward Cunningham, is crucial for agile teams to manage as it involves the trade-offs between rapidly developing software and the potential long-term costs of unresolved issues. Cunningham likened technical debt to financial debt, where initial shortcuts may expedite progress but incur future costs if not addressed. The software industry has since expanded the definition to include software defects, outdated code designs, and insufficient test coverage, although Cunningham emphasized that technical debt should not encompass issues like poor processes or lack of skills, which are categorized separately. Technical debt is classified into planned, unplanned, and unavoidable categories, each requiring strategic management to prevent development bottlenecks and ensure business growth. Organizations must focus on technology, processes, and employee culture to effectively manage technical debt, emphasizing transparency, accountability, and continuous improvement to maintain software quality and agility.