Business strategy, performance management, and compensation systems should be carefully linked.

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Business strategy, performance management, and compensation systems should be aligned to ensure that employees are motivated to perform in a way that supports the organization's strategic objectives. Performance management helps to identify and measure individual and team progress towards these objectives, and compensation systems should incentivize and reward employees who contribute to the achievement of these goals. Therefore, all three systems should be carefully linked to create a cohesive and effective approach to managing and driving business performance.

Business Strategy, Performance Management, and Compensation Systems Should Be Carefully