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- Upskill your Product Thinking
"The
Cobra Effect
" — When incentives backfire spectacularly
A cautionary tale on optimizing the wrong metrics.
When your "solution" becomes the new problem.
The Problem
Colonial India
Cobra infestation
Cobra infestation
Bounty offered
on dead cobra.
on dead cobra.
More
cobras
than
before
Arrow
becomes new business.
Breeding cobras
When product teams repeat history.
The Pattern
metrics.
vanity
You paid for
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Fake accounts explode.
"Pay $5 per referral."
"Pay $5 per referral."
feel
ignored.
Customers
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Rushed calls. Resolved on paper.
"Reward agents for
tickets closed."
"Reward agents for
tickets closed."
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"Optimize for clicks."
"Optimize for clicks."
Clickbait headlines. Empty content.
Trust
suffers.
CTR spikes.
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"Ship faster.
Reward velocity."
"Ship faster.
Reward velocity."
Corners cut. Testing skipped.
Users churn.
pile up.
Bugs
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Goodhart's Law:
Goodhart's Law:
"When a measure
becomes a target,
it ceases to be
a good measure."
What do we learn?
The Takeaway
Measure
We Learn That
outcomes.
Not outputs.
Hitting the target
is not the same as
solving the problem.
- Keep upskilling.
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