Goodhart's law and the unintended consequences of targets

One enormous nail dangling from a crane is what happens when management gets exactly what it asked for.

The modern versions fit inside dashboards. Support closes tickets before customers are helped. Sales fills calendars with people who will never buy. Content acquires page views from readers who cannot remember the brand by lunchtime. Nobody has cheated the metric; they have obeyed it with irritating precision. The fraud began when a convenient proxy was promoted into the purpose.

Targets compress. That makes them useful and lossy. Attach money, status or survival and the missing detail becomes the entire game. Speed needs recurrence or quality beside it. Acquisition needs retention and fit. Production needs something that notices whether the output can actually be used. More importantly, somebody must inspect the behaviour created by the number rather than admiring the number in isolation.

Calling this “gaming” often lets designers blame the workforce for reading the rules. People are exceptional students of whatever pays. If a team can win by producing the equivalent of one gigantic nail, expect a crane in the car park. Reading that response is basic management literacy. The target worked perfectly and exposed the target setter’s rather flimsy definition of success.

Behavioural principles

Behavioural ideas at play in this post

Short, plain-English explanations of the principles behind this post, with links to related books and examples in the archive.