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Goodhart's Law Isn't as Useful as You Might Think - Commoncog

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Join 8,000+ sharp investors and operators like yourself, and we'll send you a collection of Commoncog's best articles right away: This is Part 1 of the Becoming Data Driven in Business series. Goodhart’s Law is a famous adage that goes “when a measure becomes a target, it ceases to be a good measure.” If you’re not familiar with the adage, you can go read all about its history on Wikipedia, and perhaps also read the related entry on the ‘cobra effect’ (which includes a litany of entertaining perverse incentive stories, of which the eponymous cobra anecdote is merely one): But I’m here to tell you that Goodhart’s Law is not as useful as you might think. At some level, this is self-evident. Goodhart’s Law is about as pithy and about as practicable as “the only certainty in life is death and taxes” and “hell is other people.” It is descriptive; it tells you of the existence of a phenomenon, but it doesn’t tell you what to do about it or how to solve it. Thankfully, it turns out that there

Goodhart's Law Isn't as Useful as You Might Think - Commoncog --> This is part of the Operations topic cluster, which belongs to the Business Expertise Triad . Business Thinking Goodhart's Law Isn't as Useful as You Might Think By Cedric Chin Table of Contents The thought of business school make you go ‘eww’? You’re in good company. 9,000+ investors and operators read Commoncog to sharpen their business acumen ... WITHOUT going back to school. Sign up for our newsletter and get a weekly dose of good business thinking (no BS guaranteed): Subscribe This is Part 1 of the Becoming Data Driven in B

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