Goodhart’s Law

This pitfall is evident in many areas of life. We focus on working long hours instead of getting meaningful work done. We care more about getting ten thousand steps than we do about being healthy. We teach for standardized tests instead of emphasizing learning, curiosity, and critical thinking. In short, we optimize for what we measure. When we choose the wrong measurement, we get the wrong behavior. This is sometimes referred to as Goodhart’s Law. Named after the economist Charles Goodhart, the principle states, “When a measure becomes a target, it ceases to be a good measure.” Measurement is only useful when it guides you and adds context to a larger picture, not when it consumes you. Each number is simply one piece of feedback in the overall system. In our data-driven world, we tend to overvalue numbers and undervalue anything ephemeral, soft, and difficult to quantify. We mistakenly think the factors we can measure are the only factors that exist. But just because you can measure something doesn’t mean it’s the most important thing. And just because you can’t measure something doesn’t mean it’s not important at all.