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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

entrepreneur daily

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.

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