Time- and money-based targets donât always serve the purpose we intend. In fact, sometimes, they actively work against us. Today weâre spelunking into a few related principles like Goodhartâs Law, The Cobra Effect, and why vanity metrics are often no more than a hungry ghost lurking in the shadows of your business. I couldnât resist sprinkling pop culture clips throughout to illustrate these concepts, so I hope you enjoy the ride :)
đ 3 Key Takeaways:
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Be mindful when implementing specific numerical targets. Consider how they may lead to behavior that doesn't align with your overall goals and values, sometimes even transforming into perverse incentives that beget negative actions.
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Clarify your values. Make it clear to your team what values you prioritize (and ethical behavior more broadly) over short-term gains or âshouldsâ based on what everyone else is doing.
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Be open to feedback and willing to adjust your strategies. Goodhart's Law says that "When a measure becomes a target, it ceases to be a good measure," ****so take the pressure off by zooming out from overly focusing on any one measure of success to paint a bigger, more holistic picture. Define more creative metrics that indicate youâre living in alignment with your values, and resonating with your community, such as number of enthusiastic email replies per newsletter sent.
đ Permission: Stop chasing the hungry ghost of vanity metrics in your business. Get clear on your more meaningful metrics and core values, and aim for a holistic picture of those instead.
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Do (or Delegate) This Next: To more clearly see the tradeoffs you are willing to make, write your own âeven overâ statements, like the originators of the Manifesto for Agile Software Development have inspired many businesses to do. As in: âWe value {important quality A} even over {important quality B}.â
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