We all know this law coined by Elia Goldratt:
Tell me how you’ll measure me, and I’ll tell you how I’ll behave.
This cause-consequence relationship between incentive and action is very important for managers. As with many other things this can be applied on different levels. Consider the difference of measuring someone by number of oranges sold versus number of happy customers returning to the store to buy oranges.
I came across a great example of metric taken to the next level in post £24m School Can't Get Its WiFi Working by Fraser Speirs:
In my school, we aim to lose no more than five teaching hours per school year to computer failure.
Do you see how this metric not only prompts "correct" behavior, but also sets the goal? Metrics like this are less prone to "local optimum" problem when person compromises on quality and results in some other areas make up for particular target, because they do not control action itself (like, selling oranges), but instead control ultimate outcome of the action (like, happy customers).
Are you and your team starve to get more happy customers or try to sell more oranges?