Measure something, but make it relevant to your employees, your customers, and your bottom line. Measuring performance biases employees' energy like a highlighter biases the eye on a written page. Highlight too much and we overwhelm. Highlight the essential nuggets and we assure attention to the highest priorities. Measurements motivate employees for different reasons.
Some employees are very competitive and thrive on distinguishing their performance from others'.
Some are very competitive and thrive on distinguishing their own future performance from their past. In other words, they compete with themselves. And some employees are not competitive at all. They are very dutiful and focus their energy on whatever is highlighted for them. Institute Profit Sharing Tie the measurement to a reward.