[bruce511]

The best approach is really hard. (Which is why proxy metrics in the first place.)

The best approach is to have a -very- clear set of goals, and to accurately measure progress to those goals, not to proxy metrics or goals.

Yeah, I know, easier said than done.

Usually a business has multiple goals, which are complementary. Enumerating, and measuring these make the system harder to game. Or more accurately make it harder to get better metrics without also getting closer to the actual goals.

If you want sales,then measure sales. If you want growth measure that. If you want customer satisfaction then measure that. If you want happy employees then measure that. List -everything-, measure everything. Understand the tensions, improvement in one area can drop the metrics in another. So work to keep improving them all.

All of this is -hard-. So most places don't bother. Find a simple measure (say stock price or turnover or profit) and ignore sustainability etc.