When KPIs Start Breeding Cobras

Many managers believe that any problem can be solved by finding the right KPI. Just measure it, track it, and reward it. But history often shows the opposite.

Let’s talk about KPIs. We may not love them, but they are always part of the conversation.

I like the term ‘perverse incentives.’ It may sound academic, but the idea is simple. You try to fix a problem by introducing a KPI. People follow the KPI exactly, but the problem actually gets worse.

A classic example is the Cobra Effect. During British rule in India, officials wanted to reduce venomous snakes in Delhi. They offered a reward for every dead cobra. The goal was clear, the incentive made sense, and the plan seemed perfect.

But then locals began breeding cobras at home. When the program ended, they released the now-worthless snakes. Instead of fewer cobras, there were even more than before. The KPI was achieved, but the real goal was lost.

Most experienced product managers hear this story, nod, and think, ‘Of course.’ Then they return to work and set up a KPI that does something similar, only with better charts.

You’ve probably seen KPIs for delivery speed that teach teams to treat quality as optional. Or engagement KPIs that push for features that are addictive, like junk food. Or growth KPIs that turn users into numbers to acquire, nudge, retain, and monetize, while trust gets ignored.

This isn’t because people are foolish or have bad intentions. It happens because KPIs are strong tools that influence behavior. They don’t just measure what’s happening — they change it. People focus on what you measure, not what you actually want.

The risky part is that KPIs seem objective and scientific. They fit neatly into dashboards and reports. Even when things go wrong, the numbers can look good for a long time. Velocity, output, and adoption may rise, but underneath, complexity, fatigue, and resentment can also grow — though those rarely show up in charts.

In product management, people often say, ‘what gets measured gets managed.’ But that’s only partly true. What gets measured gets optimized. If you optimize without good judgment, you risk creating your own cobra problem.

The hard truth is that many important product signals are difficult to measure with simple KPIs. Things like user trust, editorial integrity, long-term maintainability, and the difference between ‘people clicked’ and ‘people benefited’ are real, even if your dashboard can’t track them.

As a product leader, your job isn’t to ignore KPIs, but to keep questioning them. What behavior does this KPI encourage? What shortcuts might it allow? What would a smart, motivated team do if this number became their top priority?

If you can’t answer those questions, you’re not really managing performance. You’re running a cobra farm.

And sooner or later, the snakes will get out.