Soviet Shoe Factory Principle

The factors that are easiest to measure or most visible are the ones that get the most attention, regardless of their importance in comparison to other factors. Another way of saying this is that factors that are easiest to measure or model are not necessarily the most important ones and/or a complete picture, but human nature often forgets this.

In Soviet Russia there is a story of a shoe factory that was pressured to increase production, as measured by quantity of shoes produced. However, the factory was a bit short on materials. So to increase production, the factory decided to produce more children’s shoes, which require less material. Eventually there was a severe shortage of adult shoes, especially larger sizes. However, the factory was meeting its production goals on paper.

We can also imagine that if size quotas were given, there’d be lots of ways to skimp on quality. For example, less threads could be used. If the authorities start counting threads, then old thread can be used. If they find a way to measure the age of the thread (however unlikely), then use cheap leather, cheap glue, cheap paint, etc.

.. I remember one story from a high-school history textbook which was a factory making toy plastic balls had to meet a quota of balls per month, but was never supplied with enough plastic, so it ended up making them thinner and thinner to meet production requirements without any regard for whether they would pop as soon as one kicked them.