Incentive Drift
When people optimize what is rewarded, not what is intended—metrics become targets and targets replace purpose.
Why it matters: Incentives are the engine of drift; they silently reshape behavior at scale.
Quick Diagnostic
- Teams hit metrics while outcomes worsen.
- “Gaming” becomes normal and celebrated.
- Safety/quality loses to speed.
Cost of delay: you institutionalize the wrong behavior.
Problem
Success signals drive behavior more powerfully than mission statements. When metrics become targets, the system optimizes for the scoreboard, not reality.
Mechanism
Metric chosen → reward attached → optimization begins → gaming emerges → truth decays → trust collapses
Early Indicators
- Performance improves while real outcomes degrade.
- “Workarounds” become standard practice.
- People fear missing numbers more than harming mission.
- Reviews focus on outputs, not mechanisms.
- “We can’t change the metric” becomes governance.
- Bad news is reframed to protect numbers.
Examples
- Civilizational: engagement economics amplifies outrage.
- Institutional: enforcement agencies optimize appearances over outcomes.
- Organizational: quarterly targets distort long-term investment.
Control Opportunity
Design
- Metric audits (how it’s gamed, what it displaces).
- Balanced scorecards (short/long term; quantity/quality).
- Reward truth-telling and risk surfacing.
- Guardrail metrics (safety, trust, reversibility) that can veto.
- Independent review of metric changes.
Measurement
- Gap between reported vs audited outcomes.
- Incident rate correlated with target pressure.
- Exception growth during end-of-period pushes.
- “Near miss” reporting rate (truth culture).
Failure mode if missing
The system becomes a machine for rewarding distortion.
Core Question
What behavior does success reward?
Maps to Patterns
Incentives Outrunning Safeguards • Exception Drift • Verification Gap • Crisis as Audit
Related Problems
Short-Termism • Exception Normalization • Information Suppression
Routing
Hub • Drift • Controls (Social) • Daily Brief • Field Notes