"Robert Austin, in his book Measuring and Managing Performance in Organizations, says there are two phases when you introduce new performance metrics. At first, you actually get what you wanted, because nobody has figured out how to cheat. In the second phase, you actually get something worse, as everyone figures out the trick to maximizing the thing that you’re measuring, even at the cost of ruining the company.

Worse, Econ 101 managers think that they can somehow avoid this situation just by tweaking the metrics. Dr. Austin’s conclusion is that you just can’t. It never works. No matter how much you try to adjust the metrics to reflect what you think you want, it always backfires."