Marketing Blueprint - Goodhart’s Law

Do you ever feel like you’re hitting your targets, yet nothing meaningful seems to improve? You might be experiencing Goodhart’s Law.

What Is Goodhart’s Law?

Coined by economist Charles Goodhart, the principle states: “When a measure becomes a target, it ceases to be a good measure.” Essentially, when you set a specific goal, people often prioritize achieving that target—even if it leads to unintended or counterproductive outcomes.

How Does It Work?

Imagine you set a goal to increase website traffic by 200%. Your team might achieve this by driving irrelevant visitors to your site. While the target is technically met, the outcome doesn’t improve your bottom line because those visitors aren’t potential customers.

How to Avoid Falling into the Trap

1. Focus on Meaningful Metrics: Identify key performance indicators (KPIs) that align with your broader objectives, like lead quality or conversion rates.
2. Balance Short- and Long-Term Goals: Avoid overly narrow targets that encourage gaming the system or sacrificing quality for volume.
3. Regularly Reassess Goals: Ensure your metrics remain relevant and genuinely drive business improvements.

Your Takeaway

Measuring progress is crucial, but be cautious when turning a metric into a target. Before setting goals, ask yourself: Does this truly serve the bigger picture, or am I just chasing numbers?

Stay tuned for the next concept on Marketing Blueprint!

Julien Rio.