Goodhart's law: why a number stops telling the truth once it becomes a target
Proxy metrics: why you watch a number instead of the goal
Your boss wants to know if customers get help, and nobody can read every support chat. So you watch one number that stands in for the goal: a proxy metric. When does it tell the truth?
-
1
In your city, people rent bikes with an app. When a lock jams, the rider writes to support, often from the street and in a hurry.
-
2
You run that support team, where Miva and Rono answer the riders. Each rider's problem, from the first message until it's solved, is a ticket.
-
3
Your boss wants one number for the monthly report. Far too many tickets come in for you to read them all, so where would that number come from?
-
4
Luckily, the app already times every ticket, from the first message to solved. A number like this, one you watch to follow your work, is a metric.
-
5
From your desk, you can't see a rider back on a bike. But a ticket closed fast usually means one, so the time stands in for the goal. That makes it a proxy, and so far a good one.
-
6
Nine hours still feels slow, so you pin up a bonus: the fastest closer of the month wins. From Monday, the proxy pays.
-
Go further
The word your boss may use for that one number.