As a manager, you will need to understand the compatibility of individual and team performance, typically with respect to goals and incentives. Considering the objectives first, there should be compatibility between individual and group objectives. For example, do individual goals contribute to achieving the group goal or are they contradictory? Incentives also need to be aligned across individuals and groups. A disconnect between these is most likely when individuals are too isolated from the external environment or rewarded for an action inconsistent with the goal. For example, people might try to perfect a certain technology and, in doing so, delay its release to customers, when customers would have been satisfied with the current solution and placed a high priority on its timely delivery. Finally, companies must be careful to match their goals with their compensation structures. For example, if the organization's goal is to increase team performance, but the company's performance evaluation process rewards the productivity of individual employees, the company is unlikely to create a strong team culture. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Although financial measures of performance are often used to evaluate organizational performance, some companies have suffered negative consequences by relying solely on these measures. Traditional financial measures are better at measuring the consequences of yesterday's actions than at predicting tomorrow's performance. Therefore, it is best for managers not to rely on a set of measures to provide a clear performance objective. Many companies still rely on cost and efficiency measures, when sometimes indicators such as time, quality and service would be more appropriate measures. To be effective, performance metrics should continually evolve in order to adequately evaluate performance and focus resources on continuous improvement and staff motivation. In order to incorporate various types of performance measures, some companies develop performance measurement frameworks. These frameworks are present in the literature and range from Kaplan and Norton's Balanced Scorecard to Fitzgerald's Outcomes and Determinants framework. Kaplan and Norton's Balanced Scorecard approach operates from the perspective that more than financial data is needed to measure performance and that non-financial data should be included. adequately evaluate performance. They suggest that any performance measurement framework should enable managers to ask themselves the following questions: How do we look to our shareholders? (financial perspective) What do we need to excel at? (internal company perspective) How do our customers see us? (customer perspective) How can we continue to improve and create value? (perspective of innovation and learning)