This chapter discusses notable pay‐for‐performance frameworks developed in recent history. Based on real‐life company experiences, the chapter identifies a set of best practices that companies should follow in developing a performance measurement approach that fits with the strategic context of the business. There is no single perfect performance measurement solution because there are no two businesses that are alike. However, there are some universal principles that can be applied in developing a customized solution. The most effective performance measurement systems not only use the right metrics, but are motivational, meaningful, and fair. The chapter also discusses the evolution of the performance scorecard concept, building a case for unbalanced scorecards as a highly customizable tool that can be used to capture the multiple dimensions of performance at any organization. Of course, to achieve maximum impact on executive behaviors, the scorecard—like any performance measurement framework—must be thoughtfully tied to reward programs. Among other things, this requires identifying appropriate peers for performance comparisons, setting reasonable targets, appropriately calibrating pay and performance outcomes, and dealing with unexpected measurement problems as they arise.