Perverse incentives
Once you have a digital vision, the next step is to implement it with a clear plan, measurable targets, and a timeline. But even well designed plans can create perverse incentives that end up undermining the very goals they were meant to achieve.
The term “Cobra Effect” comes from a story set in colonial Delhi, where authorities tried to reduce venomous snakes by offering money for each dead cobra. The plan backfired when people began breeding cobras to claim more rewards. When the government caught on and ended the programme, the now worthless cobras were released, increasing the population instead of reducing it.
Image by Musthaq Nazeer from Pixabay .
Examples of the Cobra Effect in Digital Education
Imagine your organisation sets a target to incorporate Virtual Reality (VR) into a certain percentage of lessons to enhance learning. What happens if the focus shifts from using VR effectively to simply hitting the quota?
Now consider a mandatory training target for all staff to complete a course in Artificial Intelligence (AI). Could this lead to resistance and box-ticking rather than meaningful engagement?
Or take digital badges, introduced to gamify a course and boost engagement. Could they change how students approach learning? What if earning badges becomes the goal rather than engaging in the learning itself?
Hard and soft measures
Digital transformation can unintentionally create perverse incentives if not carefully planned. Engaging learners, educators, professional services staff, and other stakeholders from the outset helps identify potential pitfalls early and ensures a shared understanding of the intended benefits.
Rather than jumping straight into full implementation, starting with small pilot programmes allows organisations and teams to test, gather feedback, and refine their approach before scaling up. This reduces risk and increases the likelihood of long-term success.
To avoid unintended consequences, organisations can assess impact continually using both hard measures (such as performance data) and soft measures (like user feedback). Remaining flexible and willing to adapt based on these insights is key to avoiding the trap of perverse incentives.
Join the conversation
One way to avoid perverse incentives and unintended consequences is to share your ideas and invite diverse perspectives to help spot potential pitfalls.
Jisc’s digital leadership and culture forum is a free online community where you can share ideas and ask questions, challenge assumptions, and broaden your thinking to help ensure you don’t accidentally unleash your own digital cobras.
Further reading
Goodhart’s Law, Campbell’s Law, and the Cobra Effect. Psych Safety.
Made to measure- why we can’t stop quantifying our lives. Guardian long read (2022).
The UX Butterfly Effect: Understanding unintended consequences in design and how to plan for them. Medium
