[HN Gopher] Goodhart's law isn't as useful as you might think (2...
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       Goodhart's law isn't as useful as you might think (2023)
        
       Author : yagizdegirmenci
       Score  : 23 points
       Date   : 2024-10-26 18:13 UTC (4 hours ago)
        
 (HTM) web link (commoncog.com)
 (TXT) w3m dump (commoncog.com)
        
       | bediger4000 wrote:
       | Seems like the headline should be:
       | 
       | Is Goodhart's Law as useful as you think?
        
         | test1235 wrote:
         | Betteridge's Law would say, "no"
         | 
         | https://en.wikipedia.org/wiki/Betteridge%27s_law_of_headline...
        
       | jjmarr wrote:
       | I can confirm this. We've standardized Goodhart's law creating a
       | 90-day rotation requirement for KPIs. We found that managers
       | would reuse the same performance indicators with minor variations
       | and put them on sticky notes to make them easier to target.
        
         | hilux wrote:
         | Wow. That is an extremely cool idea - new to me.
         | 
         | Do you have enough KPIs that you can be sure that these targets
         | also serve as useful metrics for the org as a whole? Do you
         | randomize the assignment every quarter?
         | 
         | As I talk through this ... have you considered keeping some
         | "hidden KPIs"?
        
           | jjmarr wrote:
           | I'm riffing on password rotation requirements and the meta-
           | nature of trying to make Goodhart's law a target. I could've
           | been a bit more obviously sarcastic.
        
         | Spivak wrote:
         | If your managers are doing that it's a strong signal your KPIs
         | are a distraction and your managers are acting rationally
         | within the system they're been placed.
         | 
         | They need something they can check easily so the team can get
         | back to work. It's hard to find metrics that are both
         | meaningful to the business and track with the work being asked
         | of the team.
        
       | skmurphy wrote:
       | There is a very good essay in the first comment by "Roger" dated
       | Jan-2023, reproduced below. Skip the primary essay and work from
       | this:
       | 
       | "I really appreciated this piece, as designing good metrics is a
       | problem I think about in my day job a lot. My approach to
       | thinking about this is similar in a lot of ways, but my thought
       | process for getting there is different enough that I wanted to
       | throw it out there as food for thought.
       | 
       | One school of thought
       | 9https://www.simplilearn.com/tutorials/itil-tutorial/measurem...)
       | I have trained in is that metrics are useful to people in 4 ways:
       | 1. Direct activities to achieve goals         2. Intervene in
       | trends that are having negative impacts         3. Justify that a
       | particular course of action is warranted         4. Validate that
       | a decision that was made was warranted
       | 
       | My interpretation of Goodhart's Law has always centered more
       | around duration of metrics for these purposes. The chief warning
       | is that regardless of the metric used, sooner or later it will
       | become useless as a decision aid. I often work with people who
       | think about metrics as a "do it right the first time, so you
       | won't have to ever worry about it again". This is the wrong
       | mentality, and Goodhart's Law is a useful way to reach many folks
       | with this mindset.
       | 
       | The implication is that the goal is not to find the "right"
       | metrics, but to instead find the most useful metrics to support
       | the decisions that are most critical at the moment. After all,
       | once you pick a metric, 1 of 3 things will happen:
       | 1. The metric will improve until it reaches a point where you are
       | not improving it anymore, at which point it provides no more new
       | information.         2. The metric doesn't improve at all, which
       | means you've picked something you aren't capable of influencing
       | and is therefore useless.         3. The metric gets worse, which
       | means there is feedback that swamps whatever you are doing to
       | improve it.
       | 
       | Thus, if we are using metrics to improve decision making, we're
       | always going to need to replace metrics with new ones relevant to
       | our goals. If we are going to have to do that anyway, we might as
       | well be regularly assessing our metrics for ones that serve our
       | purposes more effectively. Thus, a regular cadence of reviewing
       | the metrics used, deprecating ones that are no longer useful, and
       | introducing new metrics that are relevant to the decisions now at
       | hand, is crucial for ongoing success.
       | 
       | One other important point to make is that for many people, the
       | purpose of metrics is not to make things better. It is instead to
       | show that they are doing a good job and that to persuade others
       | to do what they want. Metrics that show this are useful, and
       | those that don't are not. In this case, of course, a metric may
       | indeed be useful "forever" if it serves these ends. The
       | implication is that some level of psychological safety is needed
       | for metric use to be more aligned with supporting the mission and
       | less aligned with making people look good."
        
         | turtleyacht wrote:
         | Thank-you. The next time metrics are mentioned, one can mention
         | an expiration date. That can segue into evolving metrics,
         | feedback control systems, and the crucial element of
         | "psychological safety."
         | 
         | A jaded interpretation of data science is to find evidence to
         | support predetermined decisions, which is unfair to all. Having
         | the capability to always generate new internal tools for Just
         | In Time Reporting (JITR) would be nice, even so reproducible
         | ones.
         | 
         | This encourages adhoc and scrappy starts, which can be iterated
         | on as formulas in source control. Instead of a gold standard of
         | a handful of metrics, we are empowered to draw conclusions from
         | all data in context.
        
           | skmurphy wrote:
           | I am not "Roger," but I can recognize someone who has long
           | and practical experience with managing metrics and KPIs and
           | their interaction with process improvement. Instead of an
           | "expiration date" I would encourage you to define a "re-
           | evaluation date" that allows enough time to judge the impact
           | and efficacy of the metrics proposed and make course
           | corrections as needed (each with its own review dates).
           | 
           | One good book on the positive impact of a metric that
           | everyone on a team or organization understands is "The Great
           | Game of Business" by Jack Stack https://www.amazon.com/Great-
           | Game-Business-Expanded-Updated-... I reviewed it at
           | https://www.skmurphy.com/blog/2010/03/19/the-business-is-
           | eve...
           | 
           | Here is a quote to give you a flavor of his philosophy:
           | 
           | "A business should be run like an aquarium, where everybody
           | can see what's going on--what's going in, what's moving
           | around, what's coming out. That's the only way to make sure
           | people understand what you're doing, and why, and have some
           | input into deciding where you are going. Then, when the
           | unexpected happens, they know how to react and react quickly.
           | "
           | 
           | Jack Stack in "Great Game of Business."
        
       | lamename wrote:
       | This is all well and good, but unfortunately depends on the
       | people pushing for the metric/system to give a shit about what
       | the metric is supposed to improve. There are still far too many
       | that prefer to slap 1 or 2 careless metrics on an entire team,
       | optimize until they're promoted, then leave the company worse
       | off.
        
       | bachmeier wrote:
       | Just a side note that this usage isn't really the application
       | Goodhart had in mind. Suppose you're running a central bank and
       | you see a variable that can be used to predict inflation. If
       | you're doing your job as a central banker optimally, you'll
       | prevent inflation whenever that variable moves, and then no
       | matter what happens to the variable, due to central bank policy,
       | inflation is always at the target plus some random quantity and
       | the predictive power disappears.
       | 
       | As "Goodhart's law" is used here, in contrast, the focus is on
       | side effects of a policy. The goal in this situation is not to
       | make the target useless, as it is if you're doing central bank
       | policy correctly.
        
       | thenobsta wrote:
       | This doesn't feel well elucidated, but I've been thinking about
       | Goodhart's law in other area's of life -- e.g. Owning a home is
       | cool and can enable some cool things. However, when home
       | ownership becomes the goal, it's becomes easy to disregard a lot
       | of life giving things in pursuit of owning a home.
       | 
       | This seems to pop up in a lot of areas and I find myself asking
       | is X thing a thing I really desire or is it something that is a
       | natural side effect of some other processes.
        
         | nrnrjrjrj wrote:
         | If you are smart and think alot you can do well renting and
         | investing elsewhere.
         | 
         | You can also ask what is life about?
         | 
         | This is hard to do because the conclusion may need to break
         | moulds, leading to family estrangement and losing friends.
         | 
         | I suspect people who end up having a TED talk in them are
         | people who had the ability through courage or their inherited
         | neural makeup to go it alone despite descenting voices. Or they
         | were raised to be encouraged to do so.
        
       | nrnrjrjrj wrote:
       | I want to block some time to grok the WBR and XMR charts that
       | Cedric is passionate about (for good reason).
       | 
       | I might be wrong but I feel like WBR treats variation (looking at
       | the measure and saying "it has changed") as a trigger point for
       | investigation rather than conclusion.
       | 
       | In that case, lets say you do something silly and measure lines
       | of code committed. Lets also say you told everyone and it will
       | factor into a perforance review and the company is know for stack
       | ranking.
       | 
       | You introduce the LOC measure. All employees watch it like a
       | hawk. While working they add useless blocks of code an so on.
       | 
       | LOC commited goes up and looks significant on XMR.
       | 
       | Option 1: grab champagne, pay exec bonus, congratulate yourself.
       | 
       | Option 2: investigate
       | 
       | Option 2 is better of course. But it is such a mindset shift.
       | Option 2 lets you see if goodhart happened or not. It lets you
       | actually learn.
        
         | shadowsun7 wrote:
         | This is accurate. https://xmrit.com/articles/gift-exceptional-
         | variation/
        
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