As a result of the most common programming technique, the "code and fix" approach, instead of designing a product, managers and programmers immediately get started on software coding, with its illusion of progress in the first few months. Eventually they get bogged down fixing their own errors. Several studies have found that 40% to 80% of a typical software project's budget goes into fixing defects that were created earlier on the same project.
The code-and-fix model is more common among internet gold rush companies, where being first to market is far more important than putting out stable or high-quality software. The problem is that managers of gold rush companies typically do not understand or care about software engineering techniques and think they do not have time to create or follow technical specifications. They would rather employ hotshot insomniac programmers who can crank out code that will make a venture capitalist see dollar signs.