When Good Metrics Go Bad: The Hidden Dangers of Performance Targets

HR departments everywhere are implementing performance targets with the best intentions: helping employees grow and driving company success. But what happens when these well-meaning metrics actually backfire?

In this episode, Gino and Wayne unpack a common workplace scenario where measuring "projects completed" leads to reduced collaboration, short-term thinking, and gaming the system. They explore the psychology behind Goodhart's Law ("when a measure becomes a target, it ceases to be a good measure") and share real-world examples of metrics gone wrong.

You'll discover:

• Why traditional project completion metrics can harm team dynamics
• How performance targets psychologically change employee behavior
• Two striking examples of well-intentioned metrics creating perverse incentives
• Alternative approaches focusing on employee engagement and organizational alignment
• The role of OKRs in setting direction without micromanaging actions
• Why annual performance reviews might be counterproductive

Key Insights:

• The difference between measuring for information vs. measuring for targets
• How financial incentives tied to metrics amplify problematic behaviors
• Why HR should focus on creating healthy workplaces rather than counting projects
• The importance of aligning individual growth with organizational outcomes

Whether you're in HR, management, or simply interested in workplace dynamics, this episode offers practical wisdom for creating performance systems that actually work.

Have a workplace situation with unintended consequences? Share it with us and we might feature it in a future episode!

Contact us at feedback@goodintentionsbadoutcomes.org