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The Incentives Lab
HBT-INC-0192 · Dimension INC · Incentives

OKR Inflation

When OKRs are tied to comp, ambition disappears.

Universal Pattern Perverse Pattern·Perverse Incentive·Grade C·draft· enriching…

Scientific Definition

When OKRs are tied to comp, ambition disappears.

Plain-English Definition

When OKRs are tied to comp, ambition disappears.

Feynman Explanation

Stretch goals stop being stretchy when bonuses depend on them.

Core Principle

When OKRs are tied to comp, ambition disappears.

Mechanisms

Psychological

Pending editorial review.

Behavioral Economic

When OKRs are tied to comp, ambition disappears.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Performance management cycle drift.

Computational

Pending editorial review.

Systems

Pending editorial review.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

Stretch goals stop being stretchy when bonuses depend on them.

Examples

Everyday
  • Teams sandbagging objectives to ensure attainment.
Modern (Organizational)
  • Performance management cycle drift.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Decouple OKRs from comp. Use them for direction, not for payout.

Measurement Approaches

Pending editorial review.

Evidence

Evidence Grade
C (A strongest → E speculative)
Replication
★★★☆☆
Intervention Confidence
4 / 5
Consensus
Pending editorial review (HBT v1.0 auto-seed).
Limitations
Pending editorial review (HBT v1.0 auto-seed).
Open Research Questions

Pending editorial review.

Primary References

Pending editorial review.

Signature Section

The Perverse Incentive Lens™

How this behavior is exploited — and how to redesign around it.

Exploitation
Performance management cycle drift.
Amplifying Incentives
Performance management cycle drift.
Org Failure Modes
Performance management cycle drift.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Decouple OKRs from comp. Use them for direction, not for payout.
Diagnostic Questions
  • Decouple OKRs from comp. Use them for direction, not for payout.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Decouple OKRs from comp. Use them for direction, not for payout.
Team
Pending editorial review (HBT v1.0 auto-seed).
Organization
Pending editorial review (HBT v1.0 auto-seed).
Policy
Pending editorial review (HBT v1.0 auto-seed).
AI Implications
Detection
Pending editorial review (HBT v1.0 auto-seed).
Measurement
Pending editorial review (HBT v1.0 auto-seed).
Mitigation
Pending editorial review (HBT v1.0 auto-seed).
Responsible Use
Pending editorial review (HBT v1.0 auto-seed).

Interactive Mini Network

Click any neighbor to re-center the graph and follow the threads of connection.

HBT-INC-0192 · INC
OKR Inflation
OIAPAnnual Performance R…CLCampbell's LawCOCharity Overhead TrapCOCharity Overhead Tra…CECobra EffectEMEfficiency MonocultureFLFederal Land Exchang…GLGoodhart's LawHDHyper-Specialization…LOLocal-Optimum Optimi…

Knowledge Graph Neighbors

Auto-linked to the rest of the Human Behavior Taxonomy by family, domain, dimension, and shared keywords.

Version History

v1.1.0 · 2026-06-28Initial auto-seed from corpus.