Lesson 23 · Goodhart's law: optimizing the metric vs. the goal

The Metric Went Up. The Goal Didn't.

Quick retrieval, before the main puzzle (lesson 12’s idea, a new setting): a fraud model’s top feature by importance score is device_fingerprint_match; ip_reputation_score, known to be highly correlated with it, scores near-zero importance. In one line: what’s the likely explanation, and is ip_reputation_score proven useless? Hold your answer; the solution confirms it.

Now the main event. Goodhart’s law, in its most quoted form: “when a measure becomes a target, it ceases to be a good measure.” The idea: a metric is often a decent proxy for a goal you actually care about, precisely because nobody is yet trying hard to move the proxy specifically. The moment you start rewarding people (or a model) for moving the proxy directly, you’ve created pressure to find the cheapest way to move that number — and the cheapest way to move a proxy is rarely the same thing as achieving the underlying goal.

The scenario. A support team’s real goal is “customers get their issues actually resolved, quickly.” Someone picks time-to-first-response (TTFR) — how long before a customer gets any reply — as the metric to track, reasoning that fast first replies correlate with a team that’s on top of things. That correlation was real, under the conditions where nobody was specifically optimizing TTFR.

Then TTFR becomes a target: agents are scored on it directly, dashboards highlight it, bonuses depend on it.

beforeafter
TTFR240 min20 min
resolution_time (issue actually closed)480 min620 min
CSAT (customer satisfaction survey score)82%68%

TTFR improved dramatically — a 91.7% reduction. What actually happened: agents started sending an instant, canned “we’ve received your ticket, someone will be in touch” auto-reply the moment a ticket arrives, which satisfies the TTFR metric perfectly (a reply went out fast) without making any progress on the actual issue. Meanwhile resolution_time — how long until the issue is genuinely closed — and CSAT both got worse.

Your task. Compute the percentage change in resolution_time (it went up — report the increase as a positive percentage), and contrast it in your own head with TTFR’s 91.7% improvement. That gap between the two percentage changes is the Goodhart gap made numeric.

What is the percentage change in resolution_time (the increase), rounded to one decimal place?

%