The #1 Management Mistake in Business and Potty Training

Are you motivating people the wrong way? It's time to understand Goodhart's Law.

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
Entrepreneur Staff
Editor-in-Chief
2 min read

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 Pessimists Archive, which explores how change happens (and why people often resist it). Check out the show for more!

More from Entrepreneur

We created the SYOB course to help you get started on your entrepreneurial journey. You can now sign up for just $99, plus receive a 7-day free trial. Just use promo code SYOB99 to claim your offer.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Entrepreneur Store scours the web for the newest software, gadgets & web services. Explore our giveaways, bundles, "Pay What You Want" deals & more.

Latest on Entrepreneur