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Unintended Consequences

The perils of poorly designed metrics and incentives

Overview
This article discusses how poorly designed metrics and incentive systems can lead to unintended negative outcomes in engineering teams, such as gaming the system, reduced morale, and suboptimal product decisions.

Key Takeaways

  • Metrics that are not aligned with true business goals can be gamed.
  • Incentives that focus solely on short-term results often undermine long-term health.
  • Clear, transparent goals and balanced measurement frameworks help avoid these pitfalls.
  • Leaders should regularly review and adjust metrics to reflect evolving priorities.

Who Would Benefit

  • Engineering managers looking to improve performance measurement.
  • Technical leads responsible for setting team incentives.
  • Executives interested in aligning engineering output with business objectives.
  • Product managers who collaborate closely with engineering.

Frameworks and Methodologies

  • OKRs (Objectives and Key Results)
  • Balanced Scorecard approach
Source: mikefisher.substack.com
#metrics#incentives#leadership#engineering management#performance#culture

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