What would be a good measure?

Goodhart's Law is a principle in economics and social science that states: "When a measure becomes a target, it ceases to be a good measure." It highlights the idea that once a particular metric is used as a basis for decision-making or as a target for optimization, people and organizations will often find ways to manipulate or game the system to achieve the desired outcome. Even if it means compromising the integrity of the original measure.

British economist Charles Goodhart; hence Goodhart’s Law, was first articulated in the context of monetary policy. He observed that when policymakers target specific economic indicators to achieve their goals, these indicators lose their reliability as accurate measures of economic stability or performance because people adjust their behavior to influence these indicators artificially.

Goodhart's Law has broad implications beyond economics and can be applied to various fields, including business management, education, and even social behavior. So, in a business context, if a company sets a specific sales target as a key performance indicator (KPI), employees may focus on meeting the target at the expense of other important factors. This can lead to unethical practices or short-term gains that harm the company's long-term prospects.

Knowing this, use caution when employing metrics or measurements as the primary basis for decision-making. People's behavior can and will likely change in response to those metrics, often in ways that undermine the original intent or accuracy of the measurement.

Do you really want to measure it now?

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