logoalt Hacker News

munificenttoday at 3:23 AM1 replyview on HN

> if companies reported dollars in and dollars out live to shareholders at least we would have an idea of how the company is doing in a general sense.

Goodhart's law is knocking on your door right now.


Replies

mcolivertoday at 3:47 AM

Help me understand what you are saying here. For those that don't know this one is "a measure becomes a target, it ceases to be a good measure".

I'm not advocating for a single metric that can be gamed. A business is fundamentally about dollars in and dollars out. Maybe add receivables in there and a few other metrics from the P&L. I'm not trying to be prescriptive here on purely cash in and out.

I do think there is a low friction way that companies could report daily certain metrics that over time would give their shareholders a sense of the company's health and trajectory.

show 2 replies