October 01, 2024

The Dark Side of Metrics: Goodhart’s Law, Cobra Effect, and the Metrics That Damage Teams

14 minutes

In this episode of the Mob Mentality Show, we explore the unintended consequences and pitfalls of relying too heavily on metrics with a dive into Goodhart’s Law. If you’ve ever wondered why well-intentioned measurements can backfire and cause harmful behaviors in software development, leadership, and beyond, then this episode is for you!

**What is Goodhart’s Law?**

Goodhart’s Law states that “When a measure becomes a target, it ceases to be a good measure.” This means that when metrics are used as goals, people tend to optimize for the metric itself rather than the underlying value or outcome it represents.

**How Can Metrics Destroy Collaboration?**

Chris shares an intriguing story about two teams set up to compete against each other, only to find that the focus on “winning” metrics led to a breakdown in communication and collaboration. Instead of fostering teamwork, the metrics created silos and a toxic environment.

**Examples of Bad Metrics in Software Development**

We go through specific metrics that have led to bad behaviors in software teams, such as:

- **Test Coverage Metrics**: How a narrow focus on test coverage can lead to tests that do nothing but improve the metric, without actually asserting anything or improving software quality.

- **Points-per-Person Metrics**: Why measuring productivity at an individual level (e.g., story points completed per person) damages team dynamics and led to cutting corners.

**Are There Any Good Metrics?**

Is it possible to use metrics without falling into the Goodhart’s Law trap? We discuss whether certain collective measures like **DORA Metrics** can provide value without the same issues.

**Metrics for Conversations, Not Evaluation**

One key takeaway is the distinction between metrics that trigger healthy conversations vs. those used to make evaluative judgments of a team from a distance. When metrics become evaluative rather than formative, they risk distorting behaviors and eroding psychological safety.

**Leading Measures vs. Lagging Measures**

We also touch on insights from *The 4 Disciplines of Execution* and its perspective on leading measures vs. lagging measures.

**Managing Teams and Incentives at Scale**

Finally, we tackle the challenge of managing people and teams at scale. Incentive structures that overemphasize metrics can lead to counterproductive behaviors, burnout, and loss of motivation. We emphasize the anti-pattern of metrics-driven management without side-by-side in-context coaching.

If you’ve ever experienced the pitfalls of metrics-driven environments or are seeking ways to improve measurement practices in your teams, this episode is packed with lessons learned, cautionary tales, and actionable advice. Don’t miss it!

Video and Show Notes: https://youtu.be/MiySzmDRYA8

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By The Mob Mentality Show

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