Get All Access for $5/mo

The #1 Management Mistake in Business and Potty Training Are you motivating people the wrong way? It's time to understand Goodhart's Law.

By Jason Feifer

Are you motivating people the wrong way? If you don't know Goodhart's Law, you might be making a huge mistake.

Goodhart's Law states this: "If a measure becomes a target, it ceases to be a good measure." That may sound dense and complicated, but it's critically important for any leader to understand. In this video, I break down what Goodhart's Law means — and why it matters so much for your management skills.

Used properly, Goodhart's Law ensures that your people are all working together for common goals that benefit the company. But ignore the law and chaos can result.

Goodhart's Law applies to managing sales teams, projects, and pretty much any business enterprise — and that's not all. I show how this principle can cause a good dog to go bad, or even lead to manipulation by your kids.

If you've ever tried (or failed) to potty train a child, it's material you need to know.

The stories in this video come from my podcast Build For Tomorrow, which explores how change happens (and why people often resist it). Check out the show for more!

Jason Feifer

Entrepreneur Staff

Editor in Chief

Jason Feifer is the editor in chief of Entrepreneur magazine and host of the podcast Problem Solvers. Outside of Entrepreneur, he is the author of the book Build For Tomorrow, which helps readers find new opportunities in times of change, and co-hosts the podcast Help Wanted, where he helps solve listeners' work problems. He also writes a newsletter called One Thing Better, which each week gives you one better way to build a career or company you love.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

Wells Fargo Reportedly Fired More Than a Dozen Employees for Faking Keyboard Activity

The bank told Bloomberg that it "does not tolerate unethical behavior."

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

'We Pulled Off An SEO Heist': Entrepreneur Stole 3.6 Million Pageviews From Competitors — And Your Business Could Be Next.

This has huge implications for businesses that rely on Google's organic traffic for revenue.

Innovation

The Key to Real Innovation Is Cross-Pollination — Here Are 10 Ways to Implement It in Your Business

Transform your business with this unique approach to sparking innovation.

Starting a Business

Spend Less Time Worrying About Your Company's Runway — And More Time Rethinking Your Strategy. Here's How.

Perceived short runways leave founders in angst. It does not have to be this way; the best way to extend the runway is the right strategy.