Category: Mindset

About KPIs. In English, there’s a concept called perverse incentive, “a harmful stimulus.” It occurs when you try to quash evil, but the methods become the perfect fertilizer for it. There’s a saying, “When a measure becomes a target, it ceases to be a good measure” (Marilyn Strathern based on Goodhart’s Law).

A classic example is the “Cobra Effect.” In colonial India, the British decided to reduce the snake population and offered a reward for every head. The plan seemed as reliable as a Swiss watch until Indians began breeding cobras on farms for the “harvest.” When the authorities realized they were being duped and cancelled the payments, the farmers simply released the now-useless snakes into the wild. As a result, there were many more cobras than before the program started 🙂

In a similar way, the French in Hanoi battled rats by paying money for severed tails. The city became overrun with lively yet tailless rats: the Vietnamese cut off the “currency” and released the creatures to breed further, to not lose a stable income.

In the 19th century, archaeologists searching for dinosaur bones and ancient fossils paid locals for every piece found. As a result, resourceful diggers intentionally shattered whole, priceless skeletons into small pieces to earn more by submitting them separately. Science wept, but the KPI for “number of finds” soared. A similar tragedy occurred with the Dead Sea Scrolls: Bedouins cut the found scrolls into small pieces to sell each fragment separately.

In the USA, this malady struck infrastructure. When building the Transcontinental Railroad, the government paid Union Pacific subsidies for every mile laid. In Nebraska, engineers, in a single corrupt impulse, drew a huge loop—the Oxbow Route. The extra 9 miles of detour made no sense for logistics but brought the builders hundreds of thousands of dollars “out of thin air.”

But if the “loop” in Nebraska was just theft, then the mistakes of U.S. Secretary of Defense Robert McNamara were a tragedy. An aficionado of numbers and mathematical models, he tried to manage the Vietnam War like a Ford assembly line.

When General Edward Lansdale timidly noted that McNamara’s formulas lacked the variable “the spirit and will of the Vietnamese people,” the secretary noted it in pencil in his notebook. And then erased it. He said that if something cannot be measured, it’s unimportant. The main metric became the body count. Officers onsite, eager to curry favor, began labeling everyone indiscriminately as “enemies,” painting an illusion of imminent victory in Washington, while the actual situation spiraled into the abyss.

In science, there’s a radical principle similar to Occam’s Razor— “Newton’s Flaming Laser Sword” (also known as “Alder’s Razor”). Its essence: if something cannot be tested by experiment (or measurement), it’s not even worthy of discussion.

It sounds reasonable for physics, but in life, it’s a direct path to what sociologist Daniel Yankelovich called the degradation of perception. He described this as a descent through four steps:

1. First, we measure only what is easy to measure.

2. Then we ignore what is difficult to measure or requires qualitative assessment.

3. The third step—we decide that what cannot be measured is not so important.

4. And the final step—we declare that what cannot be measured actually does not exist.

And at that moment, we become blind. We view the world through the keyhole of metrics, while in the room behind the door, cobras are bred, dinosaur bones are broken, and wars are lost.