Welcome to the Arkaro Insights podcast. This episode is based on original content developed by Arkaro. At Arkaro, we're committed to innovation in everything we do—including how we share our insights. We've utilised advanced AI technology to transform our written expertise into this conversational format, making our content more accessible and convenient for our busy B2B audience. What you'll hear is a two-person discussion generated through AI voice technology, designed to deliver our insights in a more engaging way than traditional reading. As we continue to evolve this approach, we genuinely value your feedback. Thank you for listening to Arkaro Insights, where professional expertise meets innovative delivery.
Full article: When KPIs Go Wrong: Lessons from Cobras and Rats
Every organisation wants to improve performance, but what happens when the very metrics designed to drive success end up causing more harm than good? This fascinating deep dive explores Goodhart's Law – the principle that "when a measure becomes a target, it ceases to be a good measure" – and reveals how this deceptively simple concept plays out with sometimes disastrous consequences.
We journey through compelling historical examples, from the colonial authorities who inadvertently created rat farming operations in Vietnam to the British rulers whose cobra bounty program backfired spectacularly in India. These historical anecdotes illuminate the same psychological forces that drove modern corporate scandals at Volkswagen and Wells Fargo, where narrowly defined metrics and intense pressure to hit targets led to systemic deception and billions in damages.
But this isn't just a cautionary tale. We examine practical strategies for creating measurement systems that actually drive the right behaviors and outcomes: balancing multiple metrics instead of fixating on single numbers, carefully linking measures to incentives, regularly reviewing and adjusting your KPIs, testing foundational assumptions, and incorporating qualitative feedback alongside quantitative data. You'll learn how to use metrics as helpful guides rather than rigid dictators, and how to build measurement approaches that create genuine value for customers, employees, and organisations alike.
Ready to rethink how you measure success? Visit arkaro.com to learn how our consultancy can help your organisation implement effective strategies for measurement, change, and innovation. For a free consultation about your specific challenges, contact Mark Blackwell directly at [email protected].

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