All organizations use performance measurement in one form or another. To be effective, however, these systems must be flexible, aligned with the organization’s strategic direction, and reinforce the behaviors that truly drive success. This episode explores how to move beyond static, annual control models rooted in traditional budgeting and towards more dynamic approaches. Concepts such as financial ROI, balanced scorecards, KPIs, and OKRs are introduced—along with techniques that help avoid the pitfalls of focusing too narrowly on numbers. The discussion also highlights well-known dysfunctional behaviors that emerge when performance management becomes overly metrics-driven, ultimately undermining owners’ and leaders’ ambitions to be efficient, attractive employers with motivated and engaged people.