This Planet Money episode revisits classic "laws of the office" that explain workplace dynamics and inefficiencies, often rooted in economic incentives. It explores Goodheart's Law (how metrics are gamed), Parkinson's Law (work expands to fill time), the Peter Principle (rising to incompetence), and a "law with no name" about social change driven by observing others. The episode also promotes the new Planet Money book and a special "laws of the office" poster.
Summarized by Podsumo
Goodheart's Law explains how targeting a specific metric can lead employees to game the system, producing good numbers but not necessarily the desired outcome (e.g., Kenny's cat food "theft" or hospitals manipulating wait times).
Parkinson's Law demonstrates that work expands to fill the time allotted, even for tasks that could be completed much faster, as proven by an experiment with a Planet Money producer.
The Peter Principle suggests that individuals are promoted based on their success until they reach a position where they are incompetent, leading to widespread inefficiency and job dissatisfaction.
A "law with no name" highlights how social change accelerates when people observe others changing, making interventions like showing people reporting domestic violence or demonstrating actual peer drinking habits highly effective.
The episode promotes the new Planet Money Book and a special "Laws of the Office" poster, available by pre-ordering the book before April 7th.
"“If a company decides to measure something, the employees are going to find a way to give you good numbers, you just may not like how they do it.”"
"“Work expands so as to feel the time available for its completion.” — Meng Zhu"
"“In a hierarchy, every employee tends to rise to their level of incompetence.” — Kenny Malone"