Goodhart’s Law: A Lesson for Leaders

Goodhart’s Law: A Lesson for Leaders

I started my career working for a quality institute at the University of Missouri. We studied Demming, Drucker, and Taguchi. And made recommendations for the manufacturing companies that funded us.

One of the phrases that often gets attributed to Peter Drucker is

“What gets measured gets managed.”

And it’s true to an extent. There has been a lot of talk lately about data driven (or data informed) decision making and so we measure things.

The kicker is that we need to measure the right things and do the right thing with those measurements.  

What can happen is that a measure that could be meaningful and help us to understand the system we are trying to manage can become a target and according to Charles Goodhart:

“When a measure becomes a target, it ceases to be a good measure.”

This maxim has become known as Goodhart’s law, and it describes the unintended consequences of incenting people to move the measure.

This happens when we focus so hard on hitting the metric that we lose sight of its real purpose. Ever seen a team:

👉 Rush to close bugs just to meet a quota?
👉 Ship features without testing thoroughly because deadlines trump quality?
👉 Boost numbers that look good on paper but don’t solve user problems?

Metrics are tools, not trophies. They guide us toward goals—but they’re not the goal.

✅ Instead, ask yourself:

• What behaviors do these metrics encourage?

• Are we measuring what matters to our mission?

• How do we balance data with intuition?

As leaders, we have to keep the focus on outcomes, not just outputs. Let’s use metrics wisely—while staying grounded in our bigger purpose.

What’s your favorite example of Goodhart’s Law in action? I’d love to hear your thoughts!