This chapter focuses on the problem, which all organizations suffer from, and which is the imbalance in how much emphasis they should place on being smart as opposed to being healthy. Some organizations miss the relevance of how important it is also to be healthy—assuring that employee morale is high, that employee turnover is low, and that managers and employees are deeply involved in understanding the leadership team's strategic intent and direction setting. Considerably, healthy behavior improves the likelihood of employee buy‐in and commitment. The author illustrates that right from the start, one has to think like a sociologist, and arguably, one needs to be a psychologist, too, because people matter a lot. No one should underestimate the magnitude of resistance to change. It is natural for people to love the status quo. The good performers are people and teams, who manage themselves, given some direction and timely feedback. Management creates value and produces results by leveraging people. Performance management is much more than dials and levers. It is about people.