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"You get what you measure" is the bane of KPIs everywhere. Measure deals closed, and you get deals with no regard for profitability. Measure profitability, and you will burn through your customer base by jacking prices and cutting quality. Etc etc.
"You get what you measure" is the bane of KPIs everywhere. Measure deals closed, and you get deals with no regard for profitability. Measure profitability, and you will burn through your customer base by jacking prices and cutting quality. Etc etc.
That is only true if you do that with no regard for the way it was achieved.
seen stats make people discourage/delay income/work to avoid anomalies/spikes in stats because if there's a spike it makes it look like you are slacking the next month, or makes a manager think you should be able to constantly hit the spike
"You get what you measure" is the bane of KPIs everywhere. Measure deals closed, and you get deals with no regard for profitability. Measure profitability, and you will burn through your customer base by jacking prices and cutting quality. Etc etc.
"You get what you measure" is the bane of KPIs everywhere. Measure deals closed, and you get deals with no regard for profitability. Measure profitability, and you will burn through your customer base by jacking prices and cutting quality. Etc etc.
I was too taken aback to follow up asking why # of sales can't be gamed too.
IMO, the law ought to be "As soon as a measure becomes known it ceases to become a good measure."
"I'm fat because I can't touch my toes? Hang on, I'll be back in three weeks."
"What's that? Your measure for gas consumption and co2 emissions has you go exactly 35 MPH for 10 minutes? Hmm....."
Assuming targets are necessary, do they not have to based on done measure?
I wish more people knew and understood this concept. It's important to know the impact that you have on a system, especially at large scale. Decades after Goodhart made this law, we still have shoddy credit risk measures that put tens of trillions of dollars at risk just in the US alone. Hell, the last recession alone was mostly caused by the government's choice of credit worthiness metrics.
"You get what you measure" is the bane of KPIs everywhere. Measure deals closed, and you get deals with no regard for profitability. Measure profitability, and you will burn through your customer base by jacking prices and cutting quality. Etc etc.
So then you add “size of customer base” to your metrics!
In general, large organizations are like an AI. In this case, making a goal that won't backfire when applied without thought is really difficult.