Business I / Control Systems
Practice question · Multiple choice

A support team bonused on calls per hour sees volume soar and resolution collapse. Goodhart's law names the pattern. What is the deeper design failure?

Hints
  1. Ask what the firm actually wanted, and what it actually measured.
  2. The agents did exactly what they were paid to do. Where is the failure?
Show the answer

A. The metric was a proxy, and stakes make people optimise proxies

Why

Nobody cheated, calls per hour genuinely rose, and that is the point: a measure ceases to be a good measure once it becomes a target. Balanced scorecards and paired metrics exist to make gaming one dimension visible in another, since no single proxy survives being optimised.

Read the lesson: Control Systems →

Practise Control Systems

The app has 5 more questions on this lesson, and keeps your place in the course. Business I is free to start.

More questions on Control Systems