Great leaders are both task and people orientated, while poor leaders become fixated on one or the other. For example, if you measure a leader's ability to perform customer service, a good metric would be direct feedback from customers on how they feel about the employee. A poorer metric would be the number of returned products. When creating goals, ensure both you and the rater understand what the goal is. Measurable - When the performance or goal is charted over the rated time period, which direction is good and which direction is bad must clearly be distinguishable so that action can be taken to reverse, maintain, or grow the rating.
Great companies treat failure as a learning opportunity.
In the early 80's, when the manager of the failed IBM PC Jr. project was called onto the carpet, the first thing he asked was if he should clean out his desk. His senior replied that they had just spent several million dollars training him and that they wanted him learn from this experience. When setting performance goals, they must be easy to understand and can be accomplished by the majority of individuals if given the proper resources. Relevant - Do not measure things that are not important. A common downfall is to try measure everything, this in turn produces many meaningless results and becomes very time consuming.