While Goodhart’s Law often occurs because of a narrow focus on a metric without understanding its role in the larger system, the approach in Jack Stack’s The Great Game of Business is to make targets an educational tool, teaching employees how to interpret and impact those targets responsibly.
GGOB, by
1. involving employees in decision-making and teaching them about metrics,
2. giving them a line-of-sight for how their contribution impacts the overall business, and
3. providing a stake in the outcome
creates collective accountability and success, and reduces the likelihood of metric manipulation.
Bottom line: GGOB recognizes that business success takes everyone, at all levels, and values the input of each employee, right down to the part-time janitor. The metrics are used as tools, like the scoreboard in baseball, to guide decision making and establish what winning as a team looks like. It all comes down to education and getting everyone aligned and pulling in the same direction.
GGOB, by 1. involving employees in decision-making and teaching them about metrics, 2. giving them a line-of-sight for how their contribution impacts the overall business, and 3. providing a stake in the outcome
creates collective accountability and success, and reduces the likelihood of metric manipulation.
Bottom line: GGOB recognizes that business success takes everyone, at all levels, and values the input of each employee, right down to the part-time janitor. The metrics are used as tools, like the scoreboard in baseball, to guide decision making and establish what winning as a team looks like. It all comes down to education and getting everyone aligned and pulling in the same direction.