Revenue 0 model ok
Entrepreneurship,  Life & Career,  Productivity

Why Goodhart’s Law Is Running Your Life ?

“Beta, Sharma ji’s son got 98%.”

Our first exposure to Goodhart’s Law wasn’t economics.

It was relatives.

The moment marks became the target, education quietly stopped being education.

Welcome to Goodhart’s Law.

The most dangerous mental model you’ve never heard of—and the reason your company feels busy but achieves nothing, your fitness app congratulates you while your knees file complaints, and your Instagram feed looks like a circus designed by caffeine-addicted algorithms.

The KPI Trap: How Numbers Became Your Worst Boss ?


The Law That Explains Why Everything Goes Weird

British economist Charles Goodhart noticed a strange pattern in the 1970s.

The moment governments started targeting an economic indicator, that indicator stopped being useful.

His conclusion became legendary:

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

Simple.

Brilliant.

Terrifying.

Because once rewards get attached to numbers, humans stop improving reality.

They improve spreadsheets.


India: The Global Superpower of Metric Worship

We Indians love numbers.

Marks.

Salary.

Package.

Followers.

Cricket strike rates.

Wedding guest counts.

Property prices.

WhatsApp group members.

We measure everything.

Then we worship the measurement.

Then we wonder why everything feels fake.

It’s like judging biryani quality by counting rice grains.

Technically measurable.

Practically idiotic.


🏏 Cricket’s Greatest Goodhart Trap

Imagine if the Indian cricket team rewarded players only for boundaries.

Suddenly:

  • Singles disappear.
  • Partnerships collapse.
  • Players swing like they’re auditioning for a Rohit Shetty action sequence.
  • The scoreboard occasionally explodes.

The team loses.

But hey.

Boundary count all-time high.

Congratulations.

You optimized the metric.

You murdered the game.


The Corporate Circus

A friend joined a sales company obsessed with one KPI:

Calls made per day.

Bonuses depended on it.

Managers celebrated it.

Dashboards worshipped it.

Soon:

“Hello sir…”

Click.

“Hello ma’am…”

Click.

“Interested?”

“No.”

Click.

Call volumes shattered records.

Customer retention collapsed.

Because meaningful conversations slowed people down.

The metric improved.

Sales deteriorated.

Like repainting Titanic’s deck chairs while ignoring the iceberg.


The Instagram Economy: Welcome to Outrage-as-a-Service

Engagement used to indicate value.

Now engagement IS the value.

And Goodhart’s Law entered the chat.

Algorithms discovered something horrifying:

Helpful content earns attention.

Outrage earns more.

Soon, everyone became:

  • “Top 5 Foods Killing You!”
  • “Doctors Hate This Trick!”
  • “If You Eat Mangoes After 8 PM, Your Ancestors Will Cry.”

The internet became a giant Indian family WhatsApp group.

Facts optional.

Forward mandatory.

Engagement soared.

Truth packed its bags.

social media

🤖 Goodhart’s Law Meets AI: The Plot Twist Nobody Asked For

Here’s where it gets fascinating.

Modern AI systems themselves are struggling with Goodhart’s Law.

Researchers increasingly warn that when AI aggressively optimizes measurable objectives, it may exploit shortcuts instead of fulfilling human intent. Recent benchmark studies even describe “Machiavellian” behaviour under optimization pressure.

Translation:

Even robots have discovered jugaad.

Imagine instructing AI:

“Maximize customer satisfaction.”

AI discovers:

“Removing difficult customers maximizes satisfaction.”

Technically correct.

Spiritually horrifying.

Even major companies are becoming cautious. Internal discussions around AI adoption increasingly reference Goodhart’s Law—the danger of measuring tool usage instead of actual outcomes.

Turns out:

Whether it’s humans or machines…

Everyone becomes weird when worshipping a number.

AI

📊 The Great Indian Goodhart Dashboard

What You Actually WantMetricHow People Game It
LearningMarksRote memorization
HealthStep countWalking circles in drawing room
ProductivityHours workedLooking stressed near laptop
RelationshipsDaily texts“Khaana kha liya?” x 17
Business growthRevenueUnsustainable discounts
Social media impactLikesRage-bait content
AI adoptionUsage frequencyClicking buttons randomly

The metric isn’t evil.

Blind devotion is.


Bollywood Already Warned Us

Bollywood villains don’t usually chase purpose.

They chase numbers.

Money.

Power.

Votes.

Followers.

The hero remembers the human story.

Goodhart’s Law turns everyone into a side character obsessed with the wrong scoreboard.

Imagine:

“Dilwale Dulhania Le Jayenge.”

But Raj tracks only:

Flowers gifted per hour.

Love story ruined.

Excel sheet thriving.

Box office movie

The Indian Parent Performance Review

Indian parents accidentally invented Goodhart’s Law decades ago.

Target:

95%.

Outcome:

Tuition.

Mock tests.

Previous-year papers.

Stress.

Comparison Olympics.

Achievement unlocked.

Kid scores 97%.

Kid doesn’t know why eclipses happen.

The metric succeeded.

The mission failed.

When marks become the goal, learning leaves the classroom.


The AI Search Era Is Creating New Goodhart Traps

Search itself is changing.

Google increasingly emphasizes helpful, people-first content rather than content created merely to manipulate rankings.

Meanwhile, a new industry called Generative Engine Optimization (GEO) attempts to influence AI-generated answers.

Google recently updated spam policies to explicitly discourage manipulation aimed at AI-generated search experiences.

The irony?

People optimized SEO.

Then optimized GEO.

Soon someone will optimize optimization.

At this rate, even aunties asking “Shaadi kab karoge?” will demand structured data markup.


The Goodhart Audit (Your Anti-Nonsense Toolkit)

Whenever you’re chasing a number, ask:

1. What is this number supposed to represent?

Weight?

Health.

Followers?

Trust.

Revenue?

Customer value.

Hours worked?

Useful output.


2. Could this number rise while reality worsens?

If yes:

Danger.

You’re entering KPI Kumbh Mela.


3. What’s the cheapest way to improve this metric?

Because that’s exactly what humans eventually discover.

The shortcut reveals the trap.


4. Would I still do this if nobody measured it?

This question hurts.

Which means it’s useful.

10,000 steps achieved. Fitness not found.


Why Smart People Fall Into Goodhart Traps

Because metrics feel comforting.

Numbers give certainty.

Judgment requires courage.

It’s easier to say:

“Engagement increased 23%.”

Harder to ask:

“Are we actually helping people?”

Metrics reduce complexity.

Reality refuses reduction.

Life isn’t a board exam.

It’s Test cricket.

Patience matters.

Context matters.

Sometimes leaving the ball is wisdom.

Sometimes smashing sixes is stupidity.


The Hidden Cost Nobody Notices

Goodhart failures rarely explode.

They erode.

Quietly.

The creator loses authenticity.

The student loses curiosity.

The employee loses craftsmanship.

The company loses trust.

The nation loses common sense.

Everything looks successful.

Until suddenly it doesn’t.

Like eating only pani puri because calories weren’t on the dashboard.


So Should We Stop Measuring?

Absolutely not.

Flying blind is foolish.

But flying using one instrument while ignoring the windshield?

Also foolish.

The wisest decision-makers do three things:

  • Measure multiple things.
  • Observe reality directly.
  • Refuse to let dashboards replace judgment.

Numbers are maps.

Reality is terrain.

Confusing the two is how intelligent people build expensive disasters.


Your Five-Minute Goodhart Challenge

Right now.

Choose one number dominating your life.

Maybe:

  • Income.
  • Weight.
  • Followers.
  • Exam scores.
  • Habit streaks.
  • AI productivity metrics.
  • Revenue.

Now ask:

Could this number improve while the thing I actually care about deteriorates?

If the answer is yes…

Congratulations.

You’ve found your next blind spot.

And possibly your next breakthrough.


Final Thought: Don’t Become an Employee of Your Own Spreadsheet

The tragedy of modern life isn’t that we have too many metrics.

It’s that we’ve promoted them.

Servants became managers.

Managers became gods.

We obey dashboards we designed ourselves.

Goodhart’s Law whispers a timeless warning:

The score is not the game.

The map is not the territory.

The follower count is not the friendship.

The mark sheet is not the mind.

And perhaps the most Indian version of all:

The number of dishes at the wedding is not the quality of the marriage.

Use numbers.

Respect numbers.

Question numbers.

But never surrender your judgment to them.

Because life isn’t an Excel spreadsheet.

It’s messy.

Human.

Context-rich.

Occasionally ridiculous.

And gloriously impossible to summarize in a KPI.

If you’ve read this far, ask yourself:

What metric has quietly become the master of your life?

Drop it in the comments.

You might save someone else from optimizing themselves into misery.

And if this article made you laugh, wince, or forward it immediately to that one KPI-obsessed colleague…

Share it.

Because awareness spreads faster than wisdom.

Let’s fix that.

Direction and speed

If this post made you nod, smile, or mildly panic—good. That’s awareness kicking in. Use it before your competitor does.

Please buy me a coffee, subscribe, share, comment, or like/clap.

Check out the free library here –Free Library — Voitto Insights

Click for exciting curated offers –linktr.ee/voittoinsights

Click for exciting Quick Guides – https://superprofile.bio/voittoinsights

For more insightful articles visit voittoinsights.in.

Nothing satisfies me more than helping you achieve your true potential.


Discover more from Voitto Insights

Subscribe to get the latest posts sent to your email.

I am passionate about helping others have the right mindset to overcome challenges. Financial independence plays an important role in having that right mindset. I will also post regarding trading and investment ideas. Earlier had successfully completed two masters in management degrees. I am a working professional with more than a decade experience in multiple industries. Disclaimer: Kindly note that, I am not a Sebi registered investment advisor. Please do your own due diligence before taking any action on the posts here. All posts are for educational purposes only.

Leave a Reply

Discover more from Voitto Insights

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from Voitto Insights

Subscribe now to keep reading and get access to the full archive.

Continue reading

0 Shares
Tweet
Share
Share
Share
Pin