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