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Rationally Speaking #240 - David Manheim on "Goodhart's Law and why metrics fail"

Rationally Speaking Podcast

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Is There Any Effective Way to Get Around Good Heart's Law?

There are a couple of ways to get around Good Heart's law. One is make a bunch of metrics instead of just one and figure out if you can, you know, hopefully they fail in different ways so that if you look at all of them, you don't end up messing up as badly when you incentivize people to build lots of little nails. It turns out it's really hard to game complex metrics compared to gaming simple ones. Don't put too much optimization pressure on things - finance does this horribly where they will say, by the way, your bonus is going to be 10% of the profits you pull in in a given year.

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